SSU insolvency and the bike industry generally

[sfotex]

Not a pure bike store, but another data point:

https://thedaily.outdoorretailer.com/news/brands-and-retailers/rei-lays-off-357-ceo-forecasts-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/beloved-bike-brand-saved-and-restructured-after-falling-into-administration?utm_campaign=socialflow&utm_medium=social&utm_source=facebook.com&fbclid=IwAR2HkxSr0hXGF1QbVGk-oRVT_GKpk9QIe4TFuHykGIvZ5JCDwfZvHhqWHF4