SSU insolvency and the bike industry generally

[Dee Hubbs]

Looks like Stages Power out of Boulder CO is next to be done:
Stages Cycling lays off entire workforce

[waxman]

Kona had me wondering in the fall, one of their endurance team riders is from town. He at one point stopped tagging Kona in his socials then he and another team guy rode mountain bikes at a gravel race. Then he rode and won a 24 with a mid range hard tail as his back up bike A week later the new Kona team announcements came out and the Enduramce Team was not mentioned anywhere. He announced he had been dropped a few weeks later and now has a new gravel sponsor and no mountain bike sponsor. This is also not some also ran, he is athe current and now 5 time world 24 hour champion as well as holding a few FKT's and has been good at promoting the brand for the 15 years he has been with them. Sad way to end a relationship.

5 time world 24hr champion? Without googling what's his name? There's a local rider here that has a similar claim to fame, been with a brand forever (we don't sell it, the store down the street does) talking with the other store owner the promotion of said brand by this athlete has led to a whopping zero sales locally.
How many Konas did you buy because of the 5x world champion?

[jamal]

I feel like Cory Wallace is pretty well known? Does a lot of other cool shit, good ig follow.

[toast2266]

How many Konas did you buy because of the 5x world champion?

I'm not sure that's really how marketing works.

[bennymac]

SSU insolvency and the bike industry generally

Yeah as far as his adventure riding and his racing results he seems like an ideal person and personality to have in a quiver of sponsored riders - far more interesting to me than the instagrams of the top DH or Enduro riders. I get to watch Richie Rude fly over a section of trail 6 times from different angles - but I’d rather check out what Himalayan peak Cory is riding over.

But I’m not in the industry and no I’ve not bought any Kona bikes from following him. I’ve also not bought any Yeti bikes from watching Rude.

[XXX-er]

Rude who i have heard of and Cory Wallace who I don't think I've heard of could probably win riding any number of brands

My take is that if a spancered guy is winning he is getting press which means the brand is out there in some way shape or form and so i am likely TO read that Kona or Yeti have their shit and their product together enough to campaign a winner and it takes money

if Wallace is that good there must be a number of ways to be spancerd riding a bike or sft

as for the expensive bikes I had never paid > 2500 $ for a bike so how did I ever get into the 5 figure bracket, hanging out with the wrong crowd i guess and my kid was a bad example

[weibo]

Cory probably could win and will on another bike. I don't think I got my point across well. What I was trying to say, obviously poorly, was that they dumped a team that was well known and brought in good exposure for the brand. It seems that during this time in biking dropping your bike packing, gravel racing, endurance riders shows you don't know who is buying your product and where the hype is or that you are so thin on cash you have to bet on one and hope. This strategy also seems strange when the only new bike you bring out is a gravel bike

[Skistack]

Looks like Stages Power out of Boulder CO is next to be done:
Stages Cycling lays off entire workforce

Well that’s just great. Hopefully someone acquires their power meter business and maintains the app and firmware updates.


Sent from my iPhone using TGR Forums

[XXX-er]

Cory probably could win and will on another bike. I don't think I got my point across well. What I was trying to say, obviously poorly, was that they dumped a team that was well known and brought in good exposure for the brand. It seems that during this time in biking dropping your bike packing, gravel racing, endurance riders shows you don't know who is buying your product and where the hype is or that you are so thin on cash you have to bet on one and hope. This strategy also seems strange when the only new bike you bring out is a gravel bike

Which might be really dumb if the brand wasn't pretty much completely done but it is almost history

I'm pretty sure the writing has been on the wall for some time, i wouldn't be surprise if they don't all have another gig altho it is a rough time to be looking

[rideit]

Well that’s just great. Hopefully someone acquires their power meter business and maintains the app and firmware updates.


TGR Forums

Likely scenario is that it will keep operating.

https://www.bicycleretailer.com/industry-news/2024/04/24/stages-cycling-executives-join-giant-after-suit-and-apparent-shut-down

[EWG]

Looks like Stages Power out of Boulder CO is next to be done:
Stages Cycling lays off entire workforce

Fuck. Wow.

[EWG]

Cory probably could win and will on another bike. I don't think I got my point across well. What I was trying to say, obviously poorly, was that they dumped a team that was well known and brought in good exposure for the brand. It seems that during this time in biking dropping your bike packing, gravel racing, endurance riders shows you don't know who is buying your product and where the hype is or that you are so thin on cash you have to bet on one and hope. This strategy also seems strange when the only new bike you bring out is a gravel bike

Throughout the industry right now a ton of pros are losing their rides. Teams are losing their sponsors. Sponsorship money is being slashed.

If you are a rider that's getting paid to ride you are in trouble right now. Friends of mine have lost their income in the last 6 months. At first we thought it was just bad luck and now we are realizing it's industry wide, which makes everyone feel a little better but still doesn't replace the cash. Brands are even pulling way back on gear sponsorships (not just cash) which seems to make little sense based on how much unsold shit is laying around.

It's a really bad time to rely on the bike industry for your livelihood, whether you are a rider, employee of a brand, or work in retail. Nervous for my circle.

[MagnificentUnicorn]

Are people really surprised that this is happening in an industry that is saturated with nearly identical products(as far as the average person is concerned)? I realize that the hardcore riders notice the subtle differences in products but that’s a vanishingly small part of the market. It’s also not surprising that paid and sponsored riders that have no added value to the bottom line, they’re an expense on the balance sheet, will lose their jobs and sponsorship as sales dwindle and profits fall.


Sent from my iPhone using TGR Forums

[Canada1]

. Brands are even pulling way back on gear sponsorships (not just cash) which seems to make little sense based on how much unsold shit is laying around.

.

I think it is hard to let a person go when the team has just filled up three free boxes of free stuff for a rider. I''ve been thinking about this alot as I see the used market plummeting and the new market all seeming to have 50% off sales. I think the companies that built up massive overstock are really leveraging down the companies that didn't. Why not buy the Yeti at the 50% off sidewalk sale even if I really want the Rocky that's 50% -60% more.

The only thing I don't see falling is the Shimano (specifically XTR) I covet.

I think the industry ripple effect is going to play out over a couple years, and unfortunately alot of the innocent are going to go down as the private equity takes it's losses (write offs) and exits.

[Canada1]

. Brands are even pulling way back on gear sponsorships (not just cash) which seems to make little sense based on how much unsold shit is laying around.

.

I think it is hard to let a person go when the team has just filled up three free boxes of free stuff for a rider. I''ve been thinking about this alot as I see the used market plummeting and the new market all seeming to have 50% off sales. I think the companies that built up massive overstock are really leveraging down the companies that didn't. Why not buy the Yeti at the 50% off sidewalk sale even if I really want the Rocky that's 50% -60% more.

The only thing I don't see falling is the Shimano (specifically XTR) I covet.

I think the industry ripple effect is going to play out over a couple years, and unfortunately alot of the innocent are going to go down as the private equity takes it's losses (write offs) and exits.