SSU insolvency and the bike industry generally

[XXX-er]

High end or low end, If you see a link about something bicycle related going tits up putting it here is as good a place as any

[joetron]

I haven’t looked at Jenson, but this looks ominous.



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[Canada1]

I hope they don’t take a hit. They have helped me out of a couple screw ups by overnighting stuff in time for me to get a bike ready for a race.

[dwoovre]

That’s not a Jenson advert. “All Store Clearance” on the title and marginal use of the English language scream redirect scam.

[Andeh]

That’s not a Jenson advert. “All Store Clearance” on the title and marginal use of the English language scream redirect scam.

Good catch

[sfotex]

Not a pure bike store, but another data point:

https://thedaily.outdoorretailer.com...sts-down-year/

[Peruvian]

That’s not a Jenson advert. “All Store Clearance” on the title and marginal use of the English language scream redirect scam.

Agreed but I just bought new tires and rotors at Jenson for 50% off so I’ll take what they’re offering.

[Skistack]

The Pro’s Closet raised another $20m of equity. The article was paywalled so not sure of the details. But I’d love to see the slide deck in the investor pitch..




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[toast2266]

The Pro’s Closet raised another $20m of equity. The article was paywalled so not sure of the details. But I’d love to see the slide deck in the investor pitch..




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"You know all those suckers that paid outrageous prices for bikes 18 months ago and then only rode them twice? They're gonna need a good consignment shop."

[Phall]

Greaney Out at Santa Cruz via PON. the shakeups around the industry continue.

[Andeh]

Greaney Out at Santa Cruz via PON. the shakeups around the industry continue.

I really wonder whether that one is "he had a long run and needed a break" or PON is blaming him for the pile of inventory they're trying to firesale right now.

[Skistack]

"You know all those suckers that paid outrageous prices for bikes 18 months ago and then only rode them twice? They're gonna need a good consignment shop."

"This is not a Ponzi scheme!"

IIRC, they raised $40m during the pandemic.

So let's make the assumption that this is not a Ponzi scheme, they now have $60m total equity. At a 5% return, investors would get $3m/yr. Let's say that after paying rent, payroll, etc., they can net $300 on every bike sold. That 10,000 bikes a year.

Good luck with that.

[joetron]

That’s wild about TPC.
My guess is they might have a ‘plan’ for liquidating excess inventory from overstocked manufacturers and that’s what this $$will go towards.
Expect to see a whole bunch of Konas and Specialized (maybe some Transitions)at TPC


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[smmokan]

Someone threw another $20mm at that dumpster fire? I have to imagine they had to get any remaining available equity for that amount, otherwise I don’t see how it’s worth the risk.

[EWG]

That’s wild about TPC.
My guess is they might have a ‘plan’ for liquidating excess inventory from overstocked manufacturers and that’s what this $$will go towards.
Expect to see a whole bunch of Konas and Specialized (maybe some Transitions)at TPC


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This seems like a good take. The bike industry is a dumpster fire generally right now and maybe this is a way to take advantage of that but as we saw from the run up just a couple years ago, the trends swing pretty quick. Risky.

[sfotex]

Jenson is selling Pivot now. Trying to shore up slow sales or does the consumer expect everything to come to their door now?

[Abies]

It’s tough out there for a small brand. I think you have to offer online sales and going through Jenson allows them to outsource all of that work rather than running a web store themselves.


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[smmokan]

It’s tough out there for a small brand. I think you have to offer online sales and going through Jenson allows them to outsource all of that work rather than running a web store themselves.


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It’s an interesting dilemma… is setting it up yourself worth 3040% margins lost thru the online retailer? Lots of other small companies have setup online sales pretty easily (or it appears, at least).

[Iowagriz]

I checked out the Pivot bikes at Jenson. These are the newest models (at least of the Mach4). Full price. I had to check it out as I just bought the old version for 40% off at Backcountry/Competitive Cyclist

[MarsB]

Orange dodging a bullet, remaining intact after restructuring

https://www.cyclingweekly.com/news/b...JCDwfZvHhqWHF4

[Eluder]

All over the internet now but...
Pole
Kona
Then there is all the Scott drama. If you dont have cash it looks like you are sinking right now. More and More.
Shop owners are you selling any bikes at a profit currently?

[Canada1]

Used bikes are less than half of what they were two years ago. Interesting times.

[toast2266]

Kinda bummed about Pole. They were way ahead of the industry when they started - one of 2 or 3 companies that figured out where mountain bike geometry was going, 6 years before everyone else. But their whole shift to super goofy looking machined weirdness doesn't seem like it did them any favors.

[Eluder]

Kinda bummed about Pole. They were way ahead of the industry when they started - one of 2 or 3 companies that figured out where mountain bike geometry was going, 6 years before everyone else. But their whole shift to super goofy looking machined weirdness doesn't seem like it did them any favors.

Lots of arrogant engineering going on over there. Remember when he wouldn't publish geo because we were too stupid? I mean, I guess he is kinda right...

[toast2266]

Lots of arrogant engineering going on over there. Remember when he wouldn't publish geo because we were too stupid? I mean, I guess he is kinda right...

Yeah, not showing people the geo chart is the most engineer-ish response to criticism of the geometry chart. Pretty funny, albeit a dumb move on their part that they ended up walking back pretty quickly.

Definitely one of those companies driven by engineers that likes to experiment with weird takes on bikes. Obviously that doesn't always lead to marketable results though.