the problem with a dodgy owner is the 80/20 rule applies, though in this case its more like 99/1.
RaceFace closing?
- Thread starter Evo.
- Start date
I wonder if we will see more of this sort of thing from component makers. It seems more bike companies are using their own brand stuff on their bikes. Giant last year on their Glory specked Raceface handle bars and ster. This year they are using their own brand bars and boxxer stem. Trek and Specialized use house branded parts. The market for Raceface parts was getting smaller as the years went on.
WHOAH...
Been very busy with work as of late but just caught this in the bike press...
WTF?!
Race Face has always put out a quality product with excellent, well-suited ad campaigns that reflect the product and the company. I own a pair of DH elbow guards and they are the burliest, toughest, most protective elbow guards I've ever owned...
To JohnP and the employees at RF: if the allegations of executive misconduct are in fact true, this is not only sad but infuriating. Sad that so many people who clearly demonstrate through their work that they have a passion for what they do have lost their jobs, and infuriating that an exec decided to use the company's assets as his own personal checking accout. Assets and valuation that were created by the hard work of intelligent, passionate employees. I've seen this before first-hand with Iron Horse and it's an experience that just leaves you gutted. To put your time, energy and passion into a company only to have it used and abused.
Unreal. Very sorry to hear this about a company with such a well diversified, quality, product range.
Been very busy with work as of late but just caught this in the bike press...
WTF?!
Race Face has always put out a quality product with excellent, well-suited ad campaigns that reflect the product and the company. I own a pair of DH elbow guards and they are the burliest, toughest, most protective elbow guards I've ever owned...
To JohnP and the employees at RF: if the allegations of executive misconduct are in fact true, this is not only sad but infuriating. Sad that so many people who clearly demonstrate through their work that they have a passion for what they do have lost their jobs, and infuriating that an exec decided to use the company's assets as his own personal checking accout. Assets and valuation that were created by the hard work of intelligent, passionate employees. I've seen this before first-hand with Iron Horse and it's an experience that just leaves you gutted. To put your time, energy and passion into a company only to have it used and abused.
Unreal. Very sorry to hear this about a company with such a well diversified, quality, product range.
Wait a couple days.... It ain't over.
Although none of their products have appealed to me enough over the years to buy one, I realize the influence they had in the progression of freeride and consequently DH parts design is considerable.
Hopefully someone will buy the name and not let all the work and money spent on the brand image go to waste.
Hopefully someone will buy the name and not let all the work and money spent on the brand image go to waste.
If your laughing now, wait until it happens
is it gonna to happen really? it means I could buy Raceface part again?If your laughing now, wait until it happens
Race Face loot bags at his next birthday party!
it was a joke, but if i managed to win the lottery, i would, i wish they would not go under, but whats done is done
if you didnt know, it was a joke from my part too
btw Im digging roach leg guards, I have old RF cranks too.
Talking about the products themselves is fairly meaningless. The people involved in a company that genuinely care about the things they do is what matters.
Guys like John uprooted every part of their life to go to Vancouver and work for RaceFace. I know he's a smart individual with a really diverse background and will stand a better chance than most of re-directing his life and salvaging something.
Others in the company may not be so similarly equipped to deal with change and will go from everything they wanted to nothing.
Prayers go out to those affected.
Guys like John uprooted every part of their life to go to Vancouver and work for RaceFace. I know he's a smart individual with a really diverse background and will stand a better chance than most of re-directing his life and salvaging something.
Others in the company may not be so similarly equipped to deal with change and will go from everything they wanted to nothing.
Prayers go out to those affected.
aka vitalmtb.com
well said. I'm not sure if it's a pipe dream, but it would be really nice if someone (or another company) bought the brand and the manufacturing capability and kept it local. I'm really sorry for all those that lost their jobs, I hope you all land on your feet.
No Pipe dream, Wait for a press release in the next 2 weeks.
Fingers crossed for whatever you're hinting at.
more info on the their closing:
http://www.pinkbike.com/news/Race-Face-The-Official-Press-Release.htm
The following is from Bicycle Retailer.
This is the next best thing to it being sold as a "going concern." Anyone that would purchase the company as a single entity has plans to continue the brand. Capturing as much of the old as possible is the best way to retain the brand equity and the quickest way to get product to market. I would imagine it would involve rehiring many key people as well.BRAIN said:
Rehiring many key people usually means the accountant and merchandise inventory clerk. Oh, and the forklift operator.
True, but it depends who buys it. If it's an investor with no MTB experience, they would be better off bringing back certain employees (designers, sales, marketing etc).
Due to some pretty huge liabilities and very few assets (the 'very few assets' is a rather unbelievable story in and of itself), the prominent theory among those in the know is that Race Face will likely be scooped up by another bike or component co. for the brand name only, then have all operations shifted to Asia. Given how far the balance sheet was allowed to get upside down, that's really the only scenario imaginable that would give anyone a faint hope of making any money.
Again, this is only speculation, but the folks who've been closest to this whole event point to this sort of situation as being the most likely.
-John P.
Again, this is only speculation, but the folks who've been closest to this whole event point to this sort of situation as being the most likely.
-John P.
John,
Sorry to hear about the closing of the company and everyone who lost their jobs. I hope bigger and better things come out of it for everyone who lost their job.
Sorry to hear about the closing of the company and everyone who lost their jobs. I hope bigger and better things come out of it for everyone who lost their job.
That's a shame, although not surprising. Goes to show you the value of branding, marketing, and the weight that a name carries. See Nuke Proof, Evil, Sunn Bikes,etc.
I hope that at the very least a core group of employees are able to keep something going under a different name.
So what you are saying in color picker terms is that Race Face's Balance sheets were not BAD ASS BLACK, but a distinct RUBY RED.
Sorry man. I know this sucks. My heart goes out to you and all the employees.
I know you will land on your feet somewhere though.
May not be the case of RaceFace, but buying a company as a single entity is probably the most often used way of eliminating competition. This business manner is wide spread throughout every single market.
Also, getting your people into company's management who will later lead company to the bankruptcy in order to literaly minize your buying price of that company has been very common way of getting valuable company very cheaply in post-soviet countries.
I trully hope the brand will go on, my guess is they'll keep design and QA departments in Canada while moving manufacture to Asia.
My hope is that John P., Hatfield, Wendy, et al are being scooped up left and right by the competition, since they're more valuable to a MTB company than any other asset that company had.
I thought it was red rum not ruby red?So what you are saying in color picker terms is that Race Face's Balance sheets were not BAD ASS BLACK, but a distinct RUBY RED.
Sorry man. I know this sucks. My heart goes out to you and all the employees.
I know you will land on your feet somewhere though.
For the Race Face guys:
Blacks Cycle in the Comox Valley, Vancouver Island is looking for a mechanic/salesperson. Email your resume to the shop if willing to relocate a short distance.
blackscycle at gmail.com
http://www.blackscycle.com
Blacks Cycle in the Comox Valley, Vancouver Island is looking for a mechanic/salesperson. Email your resume to the shop if willing to relocate a short distance.
blackscycle at gmail.com
http://www.blackscycle.com
I agree John I really feel bad about this. Not only did we lose a GREAT product, a lot of people are now out of a job. And let's face it John, there's always going to be someone that jumps his bike off a sea container to flat cement and when the part breaks, he bashes the product saying it's poor quality. No joke, my buddy sent me this link below right after I bought two Raceface Evolve DH cranks and two RF bash guards tonight from Penelope at Cambriabike.com about five hours ago!
http://www.bicycleretailer.com/news/newsDetail/5219.html
And I had a problem with a defective BB last summer but I can't deny how good their product is so I buy them. I pray they won't dissolve this great company.
So for what it's worth I really like Raceface on my bike over out of consumer touch over priced Shimano and WAY overpriced Sram. Two other good companies but out of touch with the consumer's ability in to afford there product in this economy. I found Raceface to be durable, dependable, long lasting and well built more than anything else I've used over 15 years of biking and very fairly priced within my reach. I'm really sorry to hear it. I'd love to see Raceface get bought out by it's own employees and even offer stock to riders to buy shares to keep it going.
If a 3.3 million dollar loan is what the bank is worried about, that's not a lot of dough if they offer to people the chance to buy in and no better place to announce it than RM. And I hope they do and you get your job back man.
Don't even get me started on the lousy quality of Trek's worthless "BONTRAGER" garbage! If Raceface was on Trek, they'd see sales increase.
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the site was down and now its back, any updates ?
http://raceface.com/
http://raceface.com/
This was the last thing posted on their FB page.
http://www.royalcityrecord.com/Westminster+Race+Face+goes+business/4459701/story.html
http://www.royalcityrecord.com/Westminster+Race+Face+goes+business/4459701/story.html
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Hard to convince people you are a going concern if you don't have a website.
Not sure how/why the website is back up. I've been in touch with almost all of my former co-workers, and nothing's changed as far as we know. It's possible that the receiver re-started the website to hopefully generate some interest in the asset sale, but that's just a guess on my part.
--JP
$3.3mil is quite a bit of scratch, especially as no bank is going to cough up that kind of money for a long-term loan (for someone to buy it). You're probably looking at a 5 year term at 10% interest, meaning you're looking at almost a million in the first year just in principle/interest payments.
What's more is I'd bet that if the bank is going after them for a single $3.3m loan, there's probably more loans outstanding just for cash-flow, debts owed to certain factories, etc. Remember Iron Horse was sued for an eventual $20mil, but only ~$5mil of that was owed to their lender, CIT. The rest was owed to factories for product that had already shipped, to vendors, etc.
It'll be interesting to get the full story on exactly what happened...
Yeah, and if Hadley was up for sale, that might be a valid point.
