SSU insolvency and the bike industry generally

[Dumbest Known Time]

Looks like Rocky Mountain is teetering on the edge...

https://nsmb.com/articles/rocky-moun...cy-protection/

[rideit]

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.

[t.odd]

the number I heard they are in the red for is not insignificant

[LeeLau]

The CCAA process under which Rocky files almost always (more than 99% of times) results in liquidation

[rideit]

Well, not all bad news, LOL

[evdog]

Wonder who will end up with Rocky's bikes.com url

[bamboocoreONLY]

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.

[Andeh]

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.

[GravityDT]

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.

If you still have a rep…

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…..

[rideit]

LOL, I just brought my Powerplay in to Hoff’s for possible warranty issue. We will see how that plays out!

[GravityDT]

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]?


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[gorgonzola]

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

[bamboocoreONLY]

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.

none of the carbon bikes in the last few years have had AL rear triangles.

[grinch]

I wonder if devinci is in trouble? Arent they owned by the same people? CCM?

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[LeeLau]

Rockys financials. Not pretty

Rocky Mountains financial reports

https://documentcentre.ey.com/#/detail-engmt?eid=630

The debt is formidable.

[rideit]

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

[Marshal Olson]

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?

that is... words... they fail me...

[rideit]

It’s insane.

[rideit]

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

[smmokan]

Greed and stupidity is a dangerous combination.

[Marshal Olson]

It’s insane.

i had a few superlatives and a couple expletives in between these two words!

[rideit]

You know me, I’m a paragon of understatement and restraint.

[Dantheman]

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?

[EWG]

Wasn't the rumor that Specialized had a cool billion in excess inventory?

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.

[toast2266]

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.

I think that was Trek.

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