SSU insolvency and the bike industry generally

[EWG]

[emoji638][emoji6[emoji640][emoji638]][emoji6[emoji640][emoji638]];[emoji[emoji6[emoji640][emoji638]][emoji640][emoji639]][emoji637][emoji[emoji6[emoji640][emoji638]][emoji640][emoji639]][emoji640][emoji[emoji6[emoji640][emoji638]][emoji640][emoji6[emoji640][emoji638]]][emoji6[emoji640][emoji638]][emoji6[emoji640][emoji638]]]I think that was Trek.

Sent from my SM-S[emoji[emoji6[emoji640][emoji638]][emoji640][emoji6[emoji640][emoji637]]][emoji[emoji6[emoji640][emoji638]][emoji640][emoji6[emoji640][emoji638]]][emoji637]U using Tapatalk

I might have that backwards: you might be right. I was told specialized was sitting on a billion when they started pulling team sponsorships. I think that’s confirmed. The parking garage story came from the podcast and I might have misremembered the company.

Here’s the link to the four part podcast. It’s unbelievable.

https://youtu.be/nT9meJwYO4Q?si=NKvXoRX6qhGiBUad

[SchralphMacchio]

I told my LBS owner about that podcast series.
His response l: “I already lived through all that once - I don’t need to live through it again”
[emoji23]

[toast2266]

I might have that backwards: you might be right. I was told specialized was sitting on a billion when they started pulling team sponsorships. I think that’s confirmed. The parking garage story came from the podcast and I might have misremembered the company.

Here’s the link to the four part podcast. It’s unbelievable.

https://youtu.be/nT9meJwYO4Q?si=NKvXoRX6qhGiBUad

Yeah that series was really interesting.

Also heard about specialized sitting on $1B in inventory. They certainly ran sales like they had a lot of excess inventory to move.

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[Marshal Olson]

Wasn't the rumor that Specialized had a cool billion in excess inventory? Not that KTM's $3B isn't insane, but what's worse, $1B worth of mountain bikes or $3B worth of motos?

well, $1b at cost of inventory, for a company that makes more like $500-700m in annual revenue (ie about 2 years worth of product) is definately REALLY bad. Ticking time bomb.

[LeeLau]

Some other finance type and I were debating whether Rocky can be rescued


Not in this industry at least for the next few years. The pain will take at least another year if not to wash out.

[Marshal Olson]

Some other finance type and I were debating whether Rocky can be rescued

Not in this industry at least for the next few years. The pain will take at least another year if not to wash out.

Seeing the same... Strategics (ie Pon et al) have less than no free cash or ability to take on more debt, family office/PE/HNWI will stay far far away, and hard to collateralize for an employee group to buy-out before foreclosure... so assets probably going up for auction I'd imagine.

[Eluder]

Trek was the one with 1 billion in inventory with more than a years worth of product.

Well we now have two bikes from two different brands that didn't make it hanging in our garage.

[rideit]

So, this doesn’t really affect the US market, and really, good riddance. But this is hugely indicative of the state of the industry.

https://www.theguardian.com/business...dustry-turmoil

[mntlion]

any updates on Rocky?

[swissiphic]

Some other finance type and I were debating whether Rocky can be rescued


Not in this industry at least for the next few years. The pain will take at least another year if not to wash out.

If rescued, the least they could do is change their logo to featuring the crown jewel of the Canadian Rocky Mtns, Mount Robson, not the current American Maroon Bells outside of Aspen, Colorado.

I pitched it to the marketing guy at the time in headquarters back in 1998...and...crickets...

edit: shit, I don't even know if they're a Canuck company anymore...been outta the biking game since 1999...my 1995 RMB Vertex carried me through to the bitter end, and keeps on kickin' it as a commuter for my better half these days. Those old warhorses from RMB had durability.

[frorider]

https://www.singletracks.com/mtb-gea...fter-35-years/

Light & motion have been around as long as I can remember. Tough market to compete in these days given LED supply chain.

[The SnowShow]

Are upcoming Trump tariffs likely to raise prices of bikes (from components)?

[Eluder]

Are upcoming Trump tariffs likely to raise prices of bikes (from components)?

We have no idea what he is actually threatening or thinking, so it's hard to speculate, but if a supplier or manufacturer's costs go up, all prices will increase to consumers to offset this rise in cost. No one in the industry is in shape to absorb added costs. I know that some have stockpiled a little in other industries in case of tariffs; you can bet all the products they got prior will be priced the same as the more expensive stuff still on a boat when and if the tariffs go into effect. History tells us that if you don't have someone on the inside, you won't get excluded from tariffs. If only Musk owned a bike brand...

[Andeh]

The Vital equivalent thread to this is talking about WAO getting acquired by Industry Nine, and that their bike and stem projects are dead. That's a damn shame, they looked sweet. I would have gotten an Arrival if the mullet / T-type updates had happened a few months earlier.

[waxman]

any updates on Rocky?

well the rep in our region is posting pics of new bikes at a sales meeting in the PNW....

[nickwm21]

[emoji638]][emoji640][emoji639]][emoji637][emoji[emoji6[emoji640][emoji638]][emoji640][emoji640]][emoji640][emoji640][emoji[emoji6[emoji640][emoji638]][emoji640][emoji639]][emoji[emoji6[emoji640][emoji638]][emoji640][emoji6[emoji640][emoji638]]]]Are upcoming Trump tariffs likely to raise prices of bikes (from components)?

His [emoji638][emoji[emoji6[emoji640][emoji638]][emoji640][emoji6[emoji640][emoji638]]]% Chinese steel tariff from [emoji638][emoji[emoji6[emoji640][emoji638]][emoji640][emoji6[emoji640][emoji638]]][emoji637][emoji6[emoji640][emoji638]] was immediately passed along by suppliers at that rate plus OH&P. I wouldn’t expect anything different (if he actually follows thru….)


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[jackstraw]

https://www.singletracks.com/mtb-gea...fter-35-years/

Light & motion have been around as long as I can remember. Tough market to compete in these days given LED supply chain.

Yeah, they last a long time and lumen output is incredible, so the need to upgrade is diminishing. Essentially putting themselves out of business.

[singlesline]

If only Musk owned a bike brand...

Maybe the Walton brothers behind Allied and Viathon (and most of Rapha)...

I know the Walmart CEO has been in meeting with Trump, presumably attempting to fend off tariffs that will hurt their bottom line.

[frorider]

I don’t want to turn this into a polyass thread, but there’s been a ton of media coverage on all the industries that have a good chance of avoiding the orange dumbass’s tariffs.

661 seems to be done. That’s been a slow motion failure over the last 6 months. Mysteriously, zero company communications about it.

[LeeLau]

661 website now dark

[jackstraw]

661 website now dark

I used to wear their gear, but it just seemed to fall out of my view. I didn't do it intentionally and never even thought about it until now. Looking at them I see they sold a while ago, so that may have factored into it somehow.

[singlesline]

Looks like Curated.com is next on the chopping block.

Cycling stuff seems to have vanished (maybe they found a wholesale buyer for it...new Pros Closet inventory incoming?), but there's still a lot of 50% off ski stuff and other outdoor gear.

They are holding back the discounts on some of the juicier items (ATK and Look bindings, Pomoca skins, Technica boots) but my guess is the prices will continue to drop.

[bamboocoreONLY]

I might have that backwards: you might be right. I was told specialized was sitting on a billion when they started pulling team sponsorships. I think that’s confirmed. The parking garage story came from the podcast and I might have misremembered the company.

Here’s the link to the four part podcast. It’s unbelievable.

https://youtu.be/nT9meJwYO4Q?si=NKvXoRX6qhGiBUad

yup curated is 100% done. Thank god, company is just a bunch of tech bros in the bay area acting like a real option for gear knowledge even though 99% of the folks they hired don't know two shits about gear.

My rocky rep said the brand is being bought soon, not sure by who just yet as there is a few options. Rocky will live, it'll just be covid style in terms of delivery dates for bikes this summer, completely random.

[halliday]

I might have that backwards: you might be right. I was told specialized was sitting on a billion when they started pulling team sponsorships. I think that’s confirmed. The parking garage story came from the podcast and I might have misremembered the company. Here’s the link to the four part podcast. It’s unbelievable. https://youtu.be/nT9meJwYO4Q?si=NKvXoRX6qhGiBUad

Too bad. Light And Motion made some good stuff. Oh well. On the other hand there is plenty of chap shit made in China for eveyone to buy.