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Crazy
Looks like Cleary kids bikes is also going under(?)
https://www.clearybikes.com/
I have been huge fan of Cleary bikes for my son; I think he's had every size wheel Cleary starting when he was 2 on a 12 inch balance bike. Good thing I get a 24 inch Scout last year while I could.
FIFYQuote:
Originally Posted by MarsB
The seller, Vista Outdoors, is owned by Black Rock, Gates Capital Management and some other institutional investors. They are big in the ammunition business
Just Fox head, i.e. the apparel brand not the suspension stuff. But yeah, they're all fucked now I'm sure.
So back to The Pros Closet. I came across their foreclosure auction site:
https://online.localauctions.com/auc...28/bidgallery/
Holly fawk they have a lot of equipment, more tool stations than a World Tour service course, more laptops, tablets, and monitors than a tech company. Fancy coffee machines and arcade games.
It must have been a spending heyday with all that VC money. The raised over $100 million in VC money to sell only 46,000 bikes in the business' lifetime (do that math), only 146,000 individual customers they have ever done business with. I read they received a $5.5 million input as recent as January of this year.
It really baffles me on how upside down you can finically get trying to sell used bikes.
damn, that is a lot of stuff.
kinda glad it is all to far away, otherwise i'd be putting in a lot of bids!
Haha. I’ve been browsing the auction this morning….just coming here to basically post the same as Dee. The amount of the shit they have is just wild. So. Much. Racking.
I’m trying not to bid on the Centipede arcade game
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The whole VC playbook is Scale Fast. So TPC invested for a scale that never came.
There was a company in Portland that burned thru $100million over a year back in 2000 trying to sell stereo equipment over the web. Scaled fast, never got close to turning a profit - or even a gross profit. Liquidators got $5million back.
Having been in there during COVID, every one of those racks was filled with a boxed bike ready to go.Quote:
Originally Posted by joetron
It was overwhelming how much inventory they had.
I want one of those stainless wash/degrease stations that you can fit a bike in!
(But where in the hell would I put it, lol)
For those that didn't feel like getting the calculator out, $684,000 per customer / $2.175m per bike sold.Quote:
Originally Posted by Dee Hubbs
Speachless
My take is they used some of later funding rounds to pay back the earlier investors. There’s no way they burned through a hundred mill, although it looks like they sure had fun trying.
I would love to go to through their financial statements.
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Did the $100 MM go towards payroll as well? I’m not sure how many employees they had. Upper management could have been getting paid well.
What about monthly building lease payments? Food? Maybe fancy lunches every day.
Expensive marketing costs?
Check your math here I think you did $100 Billion.
I’m getting $684 per VC customer.
$2.175M is correct if you’re doing M as thousands and MM as millions.
Quote:
Originally Posted by Marshal Olson
I will miss their vintage bike videos. This was probably the last one ever, Missy Giove's Yeti ARC.
https://www.youtube.com/watch?v=QJAbQc7Y3SY
Looks like Rocky Mountain is teetering on the edge...
https://nsmb.com/articles/rocky-moun...cy-protection/
Everyone is feeling the pinch. It doesn’t sound like a doomsday scenario (Like GT), but yeah, I’m sure it’s going to have a negative affect on product development, parts availability, etc, etc.
the number I heard they are in the red for is not insignificant
The CCAA process under which Rocky files almost always (more than 99% of times) results in liquidation
Well, not all bad news, LOL
Attachment 507842
Wonder who will end up with Rocky's bikes.com url
Hope my rep can give me a bigger idea of what's going on. RM is our only brand at my shop. It wouldn't be devastating but it would suck to have to find another brand.
Probably should've listened to the numerous times I talked to them (even emailed their CFO) about the prices they're asking. None of us dealers could move bikes until they were on big sale and in turn, we'd keep ordering less bikes the following years. Literally every new bike we built in the shop the last two summers is YT and Canyon, weird how well priced new bikes sell... I'm sure there's way more to it, but still.
Yep, every time I've been shopping for a new bike I've looked at their offerings and noped out because the value proposition is so bad. I'm fine with spending lots on biking but when you're asking Santa Cruz prices for lower quality components and aluminum rear triangles, I'm going to hard pass.Quote:
Originally Posted by bamboocoreONLY
If you still have a rep…Quote:
Originally Posted by bamboocoreONLY
Grateful for the 12+ yrs I worked for RMB until the 1st round of upper level corporate changes back in ‘16/‘17. I opted out from renewing my contract when the new guy at the wheel eliminated Independent Reps. Vibes go out to all the in-house employees who just got one helluva shitty Xmas bonus…..
LOL, I just brought my Powerplay in to Hoff’s for possible warranty issue. We will see how that plays out!
Oof. Good Luck Amigo[emoji1690][emoji298]?Quote:
Originally Posted by rideit
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not looking so good good for gt, still use my aggressor as a grocery getter and there weren't alot of gravel options out there when I got my grade
https://www.pinkbike.com/news/gt-bic...workforce.html
none of the carbon bikes in the last few years have had AL rear triangles.Quote:
Originally Posted by Andeh
I wonder if devinci is in trouble? Arent they owned by the same people? CCM?
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Rockys financials. Not pretty
Rocky Mountains financial reports
https://documentcentre.ey.com/#/detail-engmt?eid=630
The debt is formidable.Attachment 507935Attachment 507936
Holy shit, this should put Rocky’s debt load into perspective.
(but it’s all proportional to sales, of course)
https://jalopnik.com/ktm-has-265-000...und-1851727595
Is that really ~$2b+ retail value worth of distressed product? probably $1-1.5b @ cost? So essnentially 1 full year's worth of product?Quote:
Originally Posted by rideit
that is... words... they fail me...
It’s insane.
This kind of happened before with the consolidation of the U.S. auto manufacturers in the 20’s, 30’s, and 50’s
https://en.wikipedia.org/wiki/Americ...y_in_the_1950s
https://www.loganwealth.com/resource...-consolidation
Greed and stupidity is a dangerous combination.
i had a few superlatives and a couple expletives in between these two words!Quote:
Originally Posted by rideit
You know me, I’m a paragon of understatement and restraint. :FIREdevil
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?
That was confirmed. In one anecdote they ran out of rental warehouses in Australia to store it in and were actually piling it in a rented parking garage with zero inventory control.Quote:
Originally Posted by Dantheman
I think that was Trek.Quote:
Originally Posted by EWG
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