a while ago the chief monkey posted this, and it resulted in me doing some digging...
"Another indication that Pacific's support of racing will be slim or none came last week when riders and staff of the existing Schwinn and GT squads (approximately 60 people) were informed they would not be receiving their final-quarter paychecks. This is completely within the rules following the purchase of a company that's declared bankruptcy, but still came as a surprise to some of the riders.
Downhiller Steve Peat was reportedly the hardest hit, with Pacific opting not to pay him nearly $70,000 that would have been owed him if Schwinn/GT had not filed for bankruptcy. Overall World Cup dual champion Leigh Donovan was owed about $25,000 that she won't be receiving, and Alison Dunlap won't be getting her bonus for her win at the world championships in Vail. "
Well this is what I have learned so far.
In 1997 Schwinn, which at that time had already aquired GT bicycles was purchased by an investment portfolio managment company called Qeustor Partners Inc. The employee and team riders at the time opted to sign their new contracts with Questor. Most did so, and without fully understanding what they were signing failed to realize that Questor Partners has NEVER previously operated a company in this feild, and they were purchasing this asset from Scott cycles, who had previously mismanaged it, after it's initial chapter 11 bankruptcy.
The company at the time was in dire financial straights, and Questor execs believed that the influx of capital they could provide would boost it's flagging sales and distribution.
BUT since they had NO contacts in the retail sector familiar with distibution of bikes, they made poor agreements thruout..
After loosing money for 3 straight years, their shareholders and portfolio managers urged them strongly to dump the company, and divert the funds to other arenas (namely Aetna Industries, Inc., Zenith Industrial Corp, auto parts companies).
Without the financial resources, Schwinn cycles once again fell into Chapter 11.
So the courts took over temporary proprietorship until the company could be auctioned.
AND the COURTS decided to eliminate the liabilities of the company, including the TEAMS. in order to make the company a more viable auction property, in effect SAVING the company from extinction.
At the AUCTION Pacific Cycles acquired Schwinn/GT for $86 Million.
This deal was for the assets, name and distribution rights to these companies.
Pacific is the largest dist. of bikes in the world. and though they will def. make radical changes to the amount of bikes these companies create and distribute, and to the locations (retail) where the product will be avail. do not expect any immediate changes in design or quality, (though undoubtably the man. will be moved overseas).
The aquisition will also undoubtably affect the Marques image in the "hardcore enthusiast" eye.
As far as boycotting these co. simply because they have been aquired by the giant Pacific is useless and ignorant.
These companies would have ceased to exist if it had not been for Pacific, some of the other companies bidding on the assets were manufacturers of sporting goods and fitness equip. and a barbeque manufacturer.. these other companies simply wanted the extensive retail dist. contracts that were built into the co.
YES these great and famous marques will eventually degrade into common consumer type crap, and their good names will be prostituted in the search for even larger retail sales (last year bicycles sales exceeded 2 billion in the US)...
SO when that time comes NONE of us will buy any of these products...BUT
NOW is the ultimate time to purchase the top quality products that these manufacturers USED to make at exceptional prices, this aquisition has opened the door to liquidation prices on great merchandise...
just think about that....
"Another indication that Pacific's support of racing will be slim or none came last week when riders and staff of the existing Schwinn and GT squads (approximately 60 people) were informed they would not be receiving their final-quarter paychecks. This is completely within the rules following the purchase of a company that's declared bankruptcy, but still came as a surprise to some of the riders.
Downhiller Steve Peat was reportedly the hardest hit, with Pacific opting not to pay him nearly $70,000 that would have been owed him if Schwinn/GT had not filed for bankruptcy. Overall World Cup dual champion Leigh Donovan was owed about $25,000 that she won't be receiving, and Alison Dunlap won't be getting her bonus for her win at the world championships in Vail. "
Well this is what I have learned so far.
In 1997 Schwinn, which at that time had already aquired GT bicycles was purchased by an investment portfolio managment company called Qeustor Partners Inc. The employee and team riders at the time opted to sign their new contracts with Questor. Most did so, and without fully understanding what they were signing failed to realize that Questor Partners has NEVER previously operated a company in this feild, and they were purchasing this asset from Scott cycles, who had previously mismanaged it, after it's initial chapter 11 bankruptcy.
The company at the time was in dire financial straights, and Questor execs believed that the influx of capital they could provide would boost it's flagging sales and distribution.
BUT since they had NO contacts in the retail sector familiar with distibution of bikes, they made poor agreements thruout..
After loosing money for 3 straight years, their shareholders and portfolio managers urged them strongly to dump the company, and divert the funds to other arenas (namely Aetna Industries, Inc., Zenith Industrial Corp, auto parts companies).
Without the financial resources, Schwinn cycles once again fell into Chapter 11.
So the courts took over temporary proprietorship until the company could be auctioned.
AND the COURTS decided to eliminate the liabilities of the company, including the TEAMS. in order to make the company a more viable auction property, in effect SAVING the company from extinction.
At the AUCTION Pacific Cycles acquired Schwinn/GT for $86 Million.
This deal was for the assets, name and distribution rights to these companies.
Pacific is the largest dist. of bikes in the world. and though they will def. make radical changes to the amount of bikes these companies create and distribute, and to the locations (retail) where the product will be avail. do not expect any immediate changes in design or quality, (though undoubtably the man. will be moved overseas).
The aquisition will also undoubtably affect the Marques image in the "hardcore enthusiast" eye.
As far as boycotting these co. simply because they have been aquired by the giant Pacific is useless and ignorant.
These companies would have ceased to exist if it had not been for Pacific, some of the other companies bidding on the assets were manufacturers of sporting goods and fitness equip. and a barbeque manufacturer.. these other companies simply wanted the extensive retail dist. contracts that were built into the co.
YES these great and famous marques will eventually degrade into common consumer type crap, and their good names will be prostituted in the search for even larger retail sales (last year bicycles sales exceeded 2 billion in the US)...
SO when that time comes NONE of us will buy any of these products...BUT
NOW is the ultimate time to purchase the top quality products that these manufacturers USED to make at exceptional prices, this aquisition has opened the door to liquidation prices on great merchandise...
just think about that....
to read "I'm with Stickamn"?
