"There are very few creditors, all of whom were consulted throughout the decision making," said Smith.
Edge Innovation Limited was founded by Smith and Andrew Kempton, both originally from Shrewsbury.
The only profitable part of the business; Edge Bikes, the MTB frame manufacturing micro-brand that began at the end of 2002, trades on.
Smith and Kempton have agreed a deal with liquidators to buy the Edge Bikes brand and stock as a going-concern and will continue trading under the name Edge Bikes.
"This is a new venture and has no connection with Edge Innovation Ltd.," said Smith.
It's sad news that Edge Innovation couldn't support itself, there were some really exciting products in the pipeline. However, now Edge Bikes is free to fulfil its potential in its own right.
"We were half-way through setting up a dealer network for the MTB frames and all current dealers have been contacted. They shouldn't notice any difference in the level of service and support they receive, most of the same key staff are involved in the new venture and we remain on good terms with all our suppliers.
All warranties on frames sold over the past year will be honoured by the new company.
The phone number and website remain the same: 0870 744 9362 and http://www.edgebikes.com. The Edge Bikes address can be found on B3.