Advanced Sports Enterprises Inc. (ASE) announced today that they have filed for Chapter 11 bankruptcy, in order to “restructure and better position itself for future success.” ASE is the parent company to Fuji, Kestrel, SE, Breezer Bikes and Tuesday Cycles as well as retail brands Performance Bicycle and Bike Nashbar, and was formed after Advanced Sports International (ASI) purchased Performance Bicycle in 2016.
According to
Bicycle Retailer, the move is expected to lead to the closing of 40 of the current 104 Performance Bicycle stores.
In a press release, Patrick J. Cunnane, ASE’s President and CEO, stated, “While ASE is undergoing the Chapter 11 process, we will continue with business as usual; orders will be fulfilled and Performance Bicycle stores will continue operating
"Employee layoffs and store closings are inevitable, but at this time I do not have enough information to announce those plans. My goal is to continue to work through this process and keep our business intact. My vision for ASE is to become a profitable, vertically integrated, omnichannel bicycle manufacturer, wholesaler and retailer.
“We’ve taken a lot of steps to right the business over the past 27 months. We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure ASE’s long-term success. We are thankful for the continued support of our dedicated employees, valued customers, vendors and business partners as we navigate this process, and look forward to becoming a stronger company in the coming months as a buyer / investor for the business is found.”
Cunnane noted that sales of ASE's bike brands were steady, but that difficulties in increasing sales and profits on the retail side was one of the factors that led to the filing.
INDUSTRY
PINKBIKE
IBD's
REI
LIMBO
WALMART
HELL
DMV
PERFORMANCE
PinkBike: $11,000
I don't remember performancebike getting any best of the year awards, I guess they didn't pay enough money .
Just curious
I will give you examples of bikes that may come in "Bike of the year Awards" on various sites: Specialized (cuz specialized), Trek (cuz race results), Yeti (cuz everything Yeti), Santa Cruz (cuz everything), Intense (cuz expensive and Ameribrohican and race results), Mondraker (cuz race results) Unno (if you don't get that kill yourself), YT ( cuz Gwin and Andreu and all the marketing)
Know your place people... nobody gives a sht about Toyota Corolla. No one.
I think everybody these days knows that "Bike of the Year" is a highly skewed measure, and usually doesn't consider value in the equation.
Not to often websites do "Best Value Bike for the Money" tests, and when they do they are highly limited in selection.
I'm amazed they lasted as long as they did.
ASE's capital structure includes secured debts with First Lien Credit Facility ($37.9 million), Advance Holdings Loan ($7.4 million), Trade Creditor Loans ($37 million) and York Street Loans ($20 million), totaling $102 million.
Unsecured debts owed to trade suppliers include:
Active Cycle, China: $4.4 million
PT Insera, India: $3.3 million
Vista Outdoor: $1.77 million
Shanghai General Sports, China: $1.5 million
Mizuki International, Taiwan: $1.4 million
Todson: $548,000
Highway Two: $423,000
Marin: $409,000
Garmin: $290,000
Saris: $285,000
Elite: $264,000
Accell NA: $280,000
Aptos: $212,000
Louis Garneau: $204,000
Wahoo: $202,000
Pearl Izumi: $200,000
Lezyne: $198,000
Castelli: $196,000
Vittoria: $159,000
Fox: $149,000
Clif Bar: $131,000
Eliptigo: $200,000
EN-R-G Food: $82,000
J&B: $178,000
Marin Bikes: $71,000
Team Tibco: $35,000
PeopleForBikes: $22,000
PinkBike: $11,000
Yup, nice to have a rigged economy.
If those steps had been in the right direction, they would not have to file for Chapter 11.
Maybe i can get my hands on a cheap Fuji SL1 Frame...
The employees and shop owners? They are my coworkers, many of whom are like family now. The vendors I’ve worked with? They are my good friends. This job? It’s the livelihood that I rely on. This has been an extremely difficult day for all of us. Did you mean to make it even worse and hurt a stranger with a mean, shitty, totally uneducated comment? We don’t need more negativity today. Think before you speak, especially when you don’t know what you’re talking about. Do better next time. Be a kinder person, please.
Just hang in there because I think things are going to turn around for all of us very soon. It's happened before, the pendulum swings back and forth. It will never be back to the heydays of the 90s but there are better days ahead. Focus on today and don't worry too much about what might happen tomorrow. You don't know what will happen so don't sweat it. Concentrate on today. Good Luck!