Hovding Goes Bankrupt After Bicycle Airbag Helmet Deemed Unsafe

Hovding AB, a Swedish company that has made headlines for the first mass-market bicycle airbag helmet, filed for bankruptcy on Thursday after regulators stopped the sales of its main product.

The decision comes after the Swedish Consumer Agency forced a complete halt of all sales of the Hovding 3 helmet on Dec. 15, due to concerns that it wouldn’t inflate properly on impact. The company has fiercely criticized the decision, saying the agency is “killing a life-saving innovation,” and while an appeal is pending, it said in a statement on Thursday that the damage caused by the ruling leaves no option but to file for bankruptcy.