[RideMonkey]

Originally posted by shootr


They did NOT "screw" the people at Schwinn/GT, those people were "screwed" by Questor, a HUGE invesment company that felt it no longer wanted to pump money into these losing ventures. and by withdrawing that funding INSTANTLY plunged both companies back into Chapter 11.

Argh ITS VERY SIMPLE!!!!!

PACIFIC KNOWS THAT THEY BENEFIT FROM THE RACING SUCCESS OF THOSE TEAMS!!!!

Allison Dunlap and her GT were on the cover of most major cycling publications!!! Pacific made a choice! A choice that they thought would not affect them cuz nobody would care!!!! WELL I CARE!!!!

If Pacific wants to buy a performance oriented name, then they HAVE TO LIVE UP TO THE DEAL!!!!!!!!!!!!!!!!!!!!!

 

[Damn True]

So in my earlier example should the holding company that previously owned the corporation that my company bought be responsible for paying the employees?
No.
We bought the company, the intellectual property, and the physical plant. We are responsible for paying those employees.

Pacific bought GT/Schwinn. Same thing.

 

[shootr]

I understand your frustration in trying to "make me see what you mean", but I have to point something out.

Pacific stated that they would NOT mass market Schwinn untill late in 2002, and they have NOT released a statement regarding what they will do with GT.
So it as of yet unknown if they will mass market the GT brand image, (hence using the team's successes to boost sales in broad market).

And if you believe that JUST because a smaller specialty manufacturer is bought by an industry giant with a "mass market" oriented sales strategy, MEANS that they will completely dismantle the company and ignore the companies heratige, you are HIGHLY uninformed.

Have you ever heard of CCM bicycles?
They are the largest mass marketed peice o crap bikes in canada.
The are owned wholly by the Canadian cycle goliath Procycle Group. Procycle is the Canadian version of Pacific, with a large number of bike and fitness equip companies in their portfolio...
Quetzal-(crap)
Canadian Cycle company -(crap)
CCM -(crap)
Rocky Mountain bicycles -(wha-wha WHAT???)
Balfa bicycles -(again. wha-wha-WHAT????)

That is right these well known specialist builders are actually part and parcel of the "bloodsucking" mega company.

and Damn True. they did NOT buy the company wholesale and outright. with those contracts. those contracts were terminated by court injunction, when the company went into recievership.

Resulting in NO obligation on the purchaser of said assets to honor contractual obligations NOT met by previous owners.
once again....QUESTOR is the ones who should be facing all of your recriminations.

 

[heikkihall]

Isnt Devinci owned by them as well?

 

[RideMonkey]

Of course they wanted a performance oriented brand. If they didn't, why wouldnt they have just started their own line of bikes rather than pay for GT?

They wanted the name but not the responsibility.

 

[shootr]

they bought it because it was a good deal, at 86 million they got the brand recongtiion, the patent rights to the tchnology already developed by GT, and to technology they were undoubtably already working on.

If you were going to break into a market sector where you had limited experience wouldn't you yourself look at aquiring assets taht already had experience and ties in taht sector?

I am NOT argueing the fact or notion that Pacific WILL prostitute GT..
Their track record speaks for itself..
I am however taking exception to the statements you made on the initial post that started this all.

Pacific is screwing GT/Schwinn race squads


Pacific is NOT screwing these people.
They simply chose NOT to retain their services, and since they had NO legal obligation to pay out the defunct contracts, the did not.
In all it was a Brilliant coup. They aquired these assets at rock bottom prices, with virtually NO liabilities.

And to willfully target an AMERICAN company (with over 3000 employees), in an effort to deliberately sabotage their sales is corporate terrorism.

I truly believe in the "power of the internet" and as such also feel that weilding such immense power must be done carefully and with great restraint. You irresponsibly weilded that sword when you attacked Pacific Cycles, on an article you read in "Velo News" without investigating and researching the validity of the article in the first place.

just imagine if you started a rucus on here because of an article you read in "The National Enquirer"...how ridiculous would that be??

 

[RideMonkey]

These racers had ALREADY performed the service that Pacific is benefiting from.

I know EXACTLY what the article states.

 

[RideMonkey]

I don't understand wh you are so adamantly defending them.

No they had no LEGAL obligation to pay those people.

But they will be judged on their actions by the consumers. I am a consumer. They did not do the right thing. Do we have to sit around and just accept these kinds of business practices?

 

[-BB-]

Oh man... This thread is STILL alive?

Yeah... The GT and Schwinn guys got screwed.
By Whom? I could care less at this point.


In the final analysis, all we know for sure is that:
The Stick is a D1CK.

 

[shootr]

I am not discounting that.
That undoubtably was a prime criteria in the speed of the aquisition..
normally chapter 11s can take months or years to be arbitrated in the courts.

The 86 million was a lot of leverage in securing finalized terms with regards to outstanding contracts.

But those race results would have benefitted NO ONE had Pacific not purchased them..
Had they remained under court control, the net result would have been essentially the same, the teams would have gone unpaid.

Then your original post might have read:
"It is a shame that GT/Schwinn went under, they did not even have enough money to pay the team what they owed. I guess that the team should have had better contracts garanteeing them their money"

I am only trying to say that your frustration is highly misplaced when directed at Pacific.

They are NOT hurting MTBing, if anything they are helping it.

 

[shootr]

maybe your second post would have read:

If you love American companies, then DON't stop buying GT/Schwinns as your kids first bikes.

 

[shootr]

I have to say it appears we are at lagerheads. We are continuing in circles with no new relavent information being presented.

I will agree to dissagree on this subject, as I respect you and your opinions, you are intelligent and speak with merit.

 

[heikkihall]

I have never owned a GT. I have owned 1 shwinn and I care alot that everyone in their race squad got screwed. but whos fault is it? id say mostly schwinns for not properly handleing their money in the first place and going out of bussiness. but oh well its over and done and Stik has got something wrong.

Im still trying to figure out why he was the one that was b*tching last fall when he was getting screwed over and everyone else was just saying how much it sucks. well now he gets a fat paycheck from Pacific and hes bitching at us for saying that it sucks he got screwed in the first place. buy hey i dont know his side of the story so i shouldnt say anything.