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Dorel buys Iron Horse

RUFUS

e-douche of the year
Dec 1, 2006
3,480
1
Denver, CO
Not sure where else to put this.

Good news I guess for Sunday owners.


http://www.bikeradar.com/mtb/news/article/dorel-buys-iron-horse-22407


Dorel Industries, parent company of Pacific Cycles, Cannondale, GT, Schwinn, Mongoose, and Sugoi, purchased the Iron Horse Bicycle Company for US$5.2 million at auction in federal court Monday.

The deal is scheduled to close on July 15.

The sale includes existing Iron Horse inventory, trademarks and patents. According to the purchase agreement, Dorel will also pay CIT Group, Iron Horse’s secured lender, US$220,000 on July 15, 2010, the 12-month anniversary of the closing. CIT Group will pay at least US$150,000 to the Iron Horse’s unsecured creditors.

According to reports, Iron Horse was forced into bankruptcy in March by three Asian suppliers who were due more than US$5 million in back debt. The company owes another US$4 million to CIT Group, as well as US$17 million to dozens of other unsecured creditors.

Several companies, including retailer Dick's Sporting Goods, manufacturer Kent International, Care Bicycles, and Outdoor Cycle Group/Randall Scott, a company owned by the son of former Iron Horse president Cliff Weidberg, also submitted bids for Iron Horse. Scott and Weidberg were present in the courtroom.

Over 90 bids were submitted during the six-hour process, in a dramatic ending reminiscent of Pacific Cycle's acquisition of Schwinn and GT over Huffy Bicycles on September 11, 2001 in a Denver, Colorado courtroom.

According to a report on www.bicycleretailer.com, Judge Alan Trust ruled Monday afternoon that Pacific's all-cash offer of US$5 million, plus a US$220,000 one-year note was best for the involved parties.

Suspension designer Dave Weagle is also pursuing litigation against Iron Horse for back debt; that suit will now fall to Pacific for resolution.

Doug Pick, counsel for Outdoor Cycle and Randall Scott, the online retailer may strike an agreement with Pacific to purchase the remaining bicycles in inventory at Randall Scott's Colorado warehouse, so that they can continue selling them online.

“Outdoor [Cycle] has a lot of respect for Pacific's ability and talent,” Pick told www.bicycleretailer.com, “and we hope to have a long term relationship with them.”
 

Uncle Cliffy

Turbo Monkey
Jan 28, 2008
4,490
42
Southern Oregon
Good news I guess for Sunday owners.
This is debatable. We had to get a new BB shell for a customer with an I-drive 5 a couple months ago. They didn't have any and didn't expect to produce any more. Our warranty guy had to dig in a parts bin of old frames to find one for us. :think: The frame in question isn't more than 3 years old. :confused:
 

epic

Turbo Monkey
Sep 15, 2008
1,041
21
I can't imagine why they'd want Iron Horse. It seems like all they are buying is debt and bad will.
 

RUFUS

e-douche of the year
Dec 1, 2006
3,480
1
Denver, CO
Why is it good news for sunday owners?

Ask a pre-bankruptcy sale, GT I-drive owner about support for them?

Or ask me, the guy who was out on the road repping the 'new' brand and able to offer ZERO help to former customers.
That was more of a hopeful quote that maybe they would buy the parts and maybe, just maybe get them to distributors to sell.

I know this won't happen but it is a hope for some.

Why must you always be so defensive?
 

dump

Turbo Monkey
Oct 12, 2001
8,223
4,472
I hope this means the debts will get settled in a fair & timely manner.
 

CBJ

year old fart
Mar 19, 2002
12,878
4,221
Copenhagen, Denmark
Never see any Cannondale DH bikes anymore.

I would have loved a Sunday version 2 not that I think the purchase of IH will make it a reality.
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
I would have loved a Sunday version 2 not that I think the purchase of IH will make it a reality.
Although not a "Sunday V2", the new Turner DHR incorporates nearly everything that I learned on the WC circuit, and wanted to try between 2005 and 2008.
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
I hope this means the debts will get settled in a fair & timely manner.
Everyone will take pennies on the $, but it's better than nothing, and if the previous owners of IH had their way, that's what we would have gotten (nothing). I'm happy for Dorel / Pacific and if any organization can make something positive of this, well.. they have proven that they can do it. Will be interesting.
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
Does this mean DW gets the million he's owed?
No possibility. Funny thing is, if IH had just paid on time (or at all) that number would have been WAAAAY smaller. Oh well, what can you do. There were a lot of positives that came from the IH experience, I learned a lot about the world, how to protect my companies better in business, just general life and business lessons that have helped to give me more perspective than before.

Not to mention a heck of a lot more about bankruptcy proceedings than I ever imagined.. LOL
 
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Prettym1k3

Turbo Monkey
Aug 21, 2006
2,864
0
In your pants
Several companies, including retailer Dick's Sporting Goods, manufacturer Kent International, Care Bicycles, and Outdoor Cycle Group/Randall Scott, a company owned by the son of former Iron Horse president Cliff Weidberg, also submitted bids for Iron Horse. Scott and Weidberg were present in the courtroom.
Glad to see some nepetism may have played a part in this running of IH into the ground.
 

cableguy

Monkey
Jun 23, 2007
463
1
Southern California
Iron Horse was forced into bankruptcy in March by three Asian suppliers who were due more than $5 million in back debt. The company owes another $17 million to dozens of other unsecured creditors, as well as about $4 million to CIT Group.
Management must have been cooking up the books and taking advantage of their vendors. I hope some of them end up in jail. By the way, CIT Group itself is currently trying to avoid bankruptcy by getting a bailout.
 
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IH8Rice

I'm Mr. Negative! I Fail!
Aug 2, 2008
24,524
494
Im over here now
No possibility. Funny thing is, if IH had just paid on time (or at all) that number would have been WAAAAY smaller. Oh well, what can you do. There were a lot of positives that came from the IH experience, I learned a lot about the world, how to protect my companies better in business, just general life and business lessons that have helped to give me more perspective than before.

Not to mention a heck of a lot more about bankruptcy proceedings than I ever imagined.. LOL
jesus, you must smoke a lot of marijuana cause you are pretty damn laid back... not that marijuana is bad

id be pretty pissed.
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
jesus, you must smoke a lot of marijuana cause you are pretty damn laid back... not that marijuana is bad

id be pretty pissed.
Get burned enough times and you get used to it. I used to just about have a panic attack when this sort of thing happened. Being stressed is no way to live, so I just try to do well by others and hope that they reciprocate.
 

IH8Rice

I'm Mr. Negative! I Fail!
Aug 2, 2008
24,524
494
Im over here now
Get burned enough times and you get used to it. I used to just about have a panic attack when this sort of thing happened. Being stressed is no way to live, so I just try to do well by others and hope that they reciprocate.
just please dont climb to the top of a clock tower if you ever do get mad.
 

bizutch

Delicate CUSTOM flower
Dec 11, 2001
15,928
24
Over your shoulder whispering
Although not a "Sunday V2", the new Turner DHR incorporates nearly everything that I learned on the WC circuit, and wanted to try between 2005 and 2008.
Ooooh.....I can finally chime in again. I've owned the most recent dialed version of the Iron Horse Sunday and got to put in a full, uninterupted weekend of DH riding on the new Turner DW-DHR putting it through some hot laps. Not having to share was awesome. Sending SKC random pics of it on my bike rack and porch was fun too.:weee:

I want to go on record that the new DW-DHR is what a Sunday was wanting to be all along. Not to go into "this does this and that does that and this is why it's awesome"....but it rides even better than the Sunday did.

Moving forward through rough stuff is now even more fluid and pedaling is on par with my buddies GT DH-i. How does it do it? I don't wanna know. But I know what I rode and as soon as they are available, I intend on being a proud owner. DW Link fow life FOOZ!!!:thumb:
 

RD

Monkey
Jul 31, 2003
688
0
Boston, MA
Get burned enough times and you get used to it. I used to just about have a panic attack when this sort of thing happened. Being stressed is no way to live, so I just try to do well by others and hope that they reciprocate.
very wise. a good man you are dave. peter d and i want to ride nam with you sometime soon.
 

RayB

Monkey
Jan 31, 2008
744
95
Seattle
jesus, you must smoke a lot of marijuana cause you are pretty damn laid back... not that marijuana is bad

id be pretty pissed.
Get burned enough times and you get used to it. I used to just about have a panic attack when this sort of thing happened. Being stressed is no way to live, so I just try to do well by others and hope that they reciprocate.
HA!
So Dave, you're not denying it? ;)
 

bizutch

Delicate CUSTOM flower
Dec 11, 2001
15,928
24
Over your shoulder whispering
bizutch, pics!
SoEastMatt and drkenan have a mini-vid or two, but just berm stuff, nothing thrilling. Here's the aftermath of NC terra firma slam biking!

The second pic will make you itch!

When I first saw pics of the new bike, I was concerned that it was going to have flex at the rear wheel, but when you see the bike in person, you realize it's burly. The "sleeve" that the acts as the upper link to drive the shock is the most impressive thing to me. It's a solid block of metal that is shaped almost like a cradle around the shock. There's no way for the shock shaft to flex or twist. The shock more or less rides in it. Hard to explain unless you could see the bike without the shock installed.

Edit: The linkage piece I'm talking about is the one closest to the rear tire that the shock is mounted to. It looks like 2 seperate plates on either side of the shock in pics. But it actually is a single solid piece of aluminum curving under the shock that mounts to the frame, rear triangle and shock similar to that massive upper link on Demos.

Don't know that anyone has ever posted a good pic of that link, but to me it is what makes the bike so stout.

Oh, it's the medium after some new paint.
 
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MFrider

Monkey
Jul 10, 2009
138
0
The East
Has a lot to do with Dorel, but not really :rofl:

Let's face it, the DW link made Iron Horse, but the owners were greedy SOB's.

Is the bike yours Butch??
 

S.K.C.

Turbo Monkey
Feb 28, 2005
4,096
25
Pa. / North Jersey
Get burned enough times and you get used to it.
It sucks that this has to happen to people like Dave, but it's the nature of the beast (the "beast" being business and its negative aspects) unfortunately.

... I used to just about have a panic attack when this sort of thing happened. Being stressed is no way to live, so I just try to do well by others and hope that they reciprocate.
...a very Zen point of view to adopt dw - and a very healthy one.

Right on!
 
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