Cannondale Chapter 11 Bankruptcy

Discussion in 'Australia and New Zealand' started by Luther Blissett, Apr 30, 2003.

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  1. An earlier thread advised someone not buy a Cannondale bike because Cannondale were bankrupt.
    Cannondale have applied to restructure the business under Chapter 11 of the US Bankruptcy Code -
    they intend to seperate the bicycle business (which is doing very well) from the motorsport business
    (which is like throwing money down a hole).

    - LB

    Here is what Cannondale have to say (taken from
    http://www.cannondale.com/company/investor/013103b.html )

    To our customers; past, present and future -

    As you may already know, Cannondale announced on January 27th our plans to file to restructure our
    company under Chapter 11 of the Bankruptcy Code. We also announced that we have suspended the
    operations of our motorsports division. We took this step in order to facilitate a financial
    restructuring that will eliminate the continuing cash drain associated with the motorsports
    division. While we complete the restructuring through the Chapter 11 process, our bicycle business
    will continue to operate without interruption. In fact, we are shipping bicycles and other cycling
    products, and we are servicing warranty issues, on a daily basis.

    It is critical that you know that our bicycle division is not going out of business. Our goal is to
    preserve and strengthen our core bicycle business so that we can continue to produce innovative
    cycling products, just as we have throughout the duration of the motorsports project.

    For our customers and dealers, our intention is that the filing will hardly be noticed at all. We
    have received a commitment for substantial post-petition financing from our lenders, and we expect
    this interim financing, which is subject to Court approval, to provide adequate funding for all
    obligations incurred after the filing, as well as our ongoing operating needs during the
    restructuring process.

    We hope that the only difference you'll notice will be an anticipated improvement in our
    performance. With our interim financing in place, we're actually in a better position to order parts
    from our suppliers than we have been in recent months. As a result, we're looking forward to
    smoothing out our production and delivery of bicycles. Without the distraction of motorsports, we'll
    also be much more focused on bringing new, innovative technologies to market.

    Many companies that have filed for reorganization - including Harley-Davidson, Macy's, and Toys 'R'
    Us - have strengthened their businesses and are performing very well today. We're very hopeful and
    optimistic that ours will be a similar success story. In the meantime, our plan is to provide our
    customers and dealers with the best possible service and support.

    Thank you for your understanding, and for the many, many messages of support we have received.

    Sincerely,

    Joe Montgomery Founder & President
     
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  2. roKeMS

    roKeMS New Member

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    Got any recent news??
    This is like 3 months old dude!:rolleyes:
     
  3. roKeMS wrote:
    > Got any recent news?? This is like 3 months old dude!:rolleyes:

    I know it's old news, but it shits me when people say don't buy Cannondale because they are
    bankrupt. Maybe if they knew the full story they wouldn't be so ignorant, but somepeople are just
    born that way.

    (Please! No philosophical "clean slate" diatribes)

    - LB
     
  4. David Bailey

    David Bailey Guest

    > I know it's old news, but it shits me when people say don't buy Cannondale because they are
    > bankrupt. Maybe if they knew the full story they wouldn't be so ignorant, but somepeople are just
    > born that way.
    >
    > (Please! No philosophical "clean slate" diatribes)
    >

    I don't know dude it sounds like good advise to me, it stands to reason that they are not in a
    postion to be shipping out spare parts or have the capacity to honour warranties. If you were to
    choose between a brand that is fully dedicated to its bicycle division or a brand that is fixated on
    entering the motor sport market I think I would choose not to buy their product.
     
  5. David Bailey wrote:

    >>I know it's old news, but it shits me when people say don't buy Cannondale because they are
    >>bankrupt. Maybe if they knew the full story they wouldn't be so ignorant, but somepeople are just
    >>born that way.
    >>
    >>(Please! No philosophical "clean slate" diatribes)
    >>
    >>
    >>
    >
    >I don't know dude it sounds like good advise to me, it stands to reason that they are not in a
    >postion to be shipping out spare parts or have the capacity to honour warranties. If you were to
    >choose between a brand that is fully dedicated to its bicycle division or a brand that is fixated
    >on entering the motor sport market I think I would choose not to buy their product.
    >
    >
    >
    >
    >
    Did you bother to read the stuff I posted? I'm not going to repeat it .. go back and read it.
     
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