Cannondale is bankrupt

Discussion in 'Road Cycling' started by Michael Tordoff, Jan 29, 2003.

Thread Status:
Not open for further replies.
  1. Tags:


  2. Zoot Katz

    Zoot Katz Guest

    Scratch Fab's hope of riding for their team.
    --
    zk
     
  3. Another victim of Walmart's success. Even Schwinn has given up the ghost and put their bikes in
    Walmart stores. People see a nice looking bike at Walmart with cool colors for 100 bucks and then
    see the cheapest bike at a LBS for $500 with a lame paint job and wonder.... how can it be 400 bucks
    more?? and then they buy the cheaper bike.

    This might also be a reason http://www.bicyclesb2b.com/htm/editor/jays/articles/Jay02_01.htm

    They claim 24 percent fewer bicyclist in 2000 than in 1990 but also give good news for bike
    shops. But talking to my LBS leads to me think that bicycling is stagnant at best in the area
    where I live at.
     
  4. bobqzzi

    bobqzzi Guest

    Too bad, but completely inevitable. I have no idea how they ever convinced a loan officer to give
    them money to get into the motorcycle bussiness.

    I'm sure the bikes will continue on under new ownership.

    Bob

    On Mon, 27 Jan 2003 15:55:58 -0500, "Michael Tordoff" <[email protected]> wrote:

    >http://news.moneycentral.msn.com/ticker/article.asp?Feed=PR&Date=20030127&ID
    >=2266611&Symbol=US:BIKE
    >
    >and an earlier report that contains a little hope for the bike division at:
    >
    >http://209.11.49.239/bicycleretailer/headlines/article_display.jsp?vnu_conte nt_id=1804453
     
  5. "Zoot Katz" <[email protected]> wrote in message .look.ca...
    >
    >
    > Scratch Fab's hope of riding for their team.
    > --
    > zk

    Don't worry about him, there are many teams that need his UCI points to give them a better shot at
    getting a invite to events such as the TdF.

    Anyway, I still look good on my team Saeco CAAD frame even if the company bites it. I just wish the
    stupid company I have to work for would go belly up before this season starts so I can get some
    better time on the road.
     
  6. SC Hiker Biker <[email protected]> spake thusly on or about Tue, 28 Jan 2003 02:46:33 UTC

    -> Another victim of Walmart's success. Even Schwinn has given up the ghost -> and put their bikes
    in Walmart stores.

    didn't you hear Schwinn is only a sticker on the bike shaped toy now? Pacific took them down in 2001
    along with the GT brand. hrmm if pacific buys cannodale there will be a flood of crackandfail
    branded hiten steel bikes at walmart

    --
    I hurt before the ride so fibro gives me a head start on the rest of the pack. silver lining?
    [email protected]
     
  7. Jon Isaacs

    Jon Isaacs Guest

    >Another victim of Walmart's success. Even Schwinn has given up the ghost and put their bikes in
    >Walmart stores.

    >People see a nice looking bike at Walmart with cool colors for 100 bucks and then see the cheapest
    >bike at a LBS for $500 with a lame paint job and wonder.... how can it be 400 bucks more?? and then
    >they buy the cheaper bike.

    Cannondale's Bankruptcy has nothing to do with Walmart or even with their bicycle division. It is
    the result of an silly venture into the motorcycle market. They lost big time there.

    And as far as bike prices go, I don't know about your LBS, but the ones I frequent have decent entry
    level bikes for somewhere around $200.

    Certainly Walmart makes an in road into these sales but there is much more going on than that in the
    market place.

    It is also important to remember that Schwinn went under in the early 90s and from that point on
    were basically marketing company trying to capitalize on the name. Jon Isaacs
     
  8. Matt O'Toole

    Matt O'Toole Guest

    <[email protected]> wrote in message news:[email protected]...

    > Too bad, but completely inevitable. I have no idea how they ever convinced a loan officer to give
    > them money to get into the motorcycle bussiness.

    No loan officers, investment bankers. And in the mid-90s, you could get those guys to fund
    *anything,* or so it seems.

    I'm not too famiiar with Cannondale, but I watched Schwinn and GT do one stupid thing after another
    for 10 years. The real surprise was that they lasted as long as they did.

    Time for the bike industry to put the adults in charge.

    Matt O.
     
  9. On Tue, 28 Jan 2003 03:29:14 GMT, "Fabrizio Mazzoleni" <[email protected]> from Shaw Residential
    Internet wrote:

    >I just wish the stupid company I have to work for would go belly up before this season starts so I
    >can get some better time on the road.

    Raid the office supplies more -- every little bit helps.

    --
    http://home.sport.rr.com/cuthulu/ human rights = peace a clip damages in an evil bottle
    11:11:04 PM 27 January 2003
     
  10. Eric Murray

    Eric Murray Guest

    In article <[email protected]>, Jon Isaacs <[email protected]> wrote:
    >>Another victim of Walmart's success. Even Schwinn has given up the ghost and put their bikes in
    >>Walmart stores.
    >
    >Cannondale's Bankruptcy has nothing to do with Walmart or even with their bicycle division. It is
    >the result of an silly venture into the motorcycle market. They lost big time there.

    Going into the motorcycle market in itself wasn't silly, doing it incompetently was.

    Cannondale shouldn't have started by making their own engines (suzuki is quite happy to sell good
    engines to anyone, and a number of other makers could have been persuaded). They compounded that
    error by making their engine wierd just to be wierd, which added a lot of development and debug
    time. Their pre-production bikes got great press but there was a long delay before production got
    going, and sales went elsewhere. Then their QC sucked. Bikes broke left and right, causing a number
    of recalls. While they were busy trying to make a bike that would run right, KTM and Yamaha caught
    up and passed them with reliable lighter and faster four-strokes.

    Cannondale didn't stop at shooting themselves in the foot, they kept blasting away until there was
    only a stump remaining.

    Eric
     
  11. In article <[email protected]>, [email protected] says...
    > In article <[email protected]>, Jon Isaacs <[email protected]> wrote:
    > >>Another victim of Walmart's success. Even Schwinn has given up the ghost and put their bikes in
    > >>Walmart stores.
    > >
    > >Cannondale's Bankruptcy has nothing to do with Walmart or even with their bicycle division. It is
    > >the result of an silly venture into the motorcycle market. They lost big time there.
    >
    > Going into the motorcycle market in itself wasn't silly, doing it incompetently was.
    >
    > Cannondale shouldn't have started by making their own engines (suzuki is quite happy to sell good
    > engines to anyone, and a number of other makers could have been persuaded). They compounded that
    > error by making their engine wierd just to be wierd, which added a lot of development and debug
    > time. Their pre-production bikes got great press but there was a long delay before production got
    > going, and sales went elsewhere. Then their QC sucked. Bikes broke left and right, causing a
    > number of recalls. While they were busy trying to make a bike that would run right, KTM and Yamaha
    > caught up and passed them with reliable lighter and faster four-strokes.
    >
    > Cannondale didn't stop at shooting themselves in the foot, they kept blasting away until there was
    > only a stump remaining.
    >
    >
    > Eric
    >
    >

    Don't forget that when they did compete in racing they chose series that no one has ever heard of
    like Mototard and open class motos. If you ever see either of those things on ESPN you know hell has
    frozen over. If they could have make something for the 125 or 250 class riders they might have had
    some press, then again I don't know if the bike blowing up in ever moto on live TV would be that
    great for business anyway. I really think that whoever ownes/operates the company was looking for a
    tax writeoff or was dying of something and had no one to leave the business to.
    --
    _________________________
    Chris Phillipo - Cape Breton, Nova Scotia http://www.ramsays-online.com
     
  12. Kinon

    Kinon Guest

    Mismanaged, for sure. But if Cannondale goes under, so what? There's lots of alternatives, and lots
    of competition. Weak, poorly managed companies should
    die. Does Cannondale make anything so unique that we'd all be worse off without it?

    "Michael Tordoff" <[email protected]> wrote in message news:[email protected]...
    >
    http://news.moneycentral.msn.com/ticker/article.asp?Feed=PR&Date=20030127&ID
    > =2266611&Symbol=US:BIKE
    >
    > and an earlier report that contains a little hope for the bike division
    at:
    >
    >
    http://209.11.49.239/bicycleretailer/headlines/article_display.jsp?vnu_conte
    > nt_id=1804453
     
  13. Terry Morse

    Terry Morse Guest

    "Kinon" wrote:

    > Does Cannondale make anything so unique that we'd all be worse off without it?

    AFAIK, Cannondale may be the last builder of stiff Al frames with oversized tubing. They're also one
    of the last builders to have a touring model, maybe the only one with an Al tourer.
    --
    terry morse Palo Alto, CA http://www.terrymorse.com/bike/
     
  14. In article <[email protected]>, Kinon <[email protected]> wrote:
    >Mismanaged, for sure. But if Cannondale goes under, so what? There's lots of alternatives, and lots
    >of competition. Weak, poorly managed companies should
    >die. Does Cannondale make anything so unique that we'd all be worse off without it?

    Yes they do - they are the only company that will honor a lifetime warranty on the frames of
    millions of cyclists. And they are also a key factor in repairs of some of their proprietary designs
    - headshok parts anyone?

    --Paul
     
  15. In article <[email protected]>, [email protected] says...
    > Mismanaged, for sure. But if Cannondale goes under, so what? There's lots of alternatives, and
    > lots of competition. Weak, poorly managed companies should
    > die. Does Cannondale make anything so unique that we'd all be worse off without it?
    >

    Actually I think they make many unique things that we're better off without :)
    --
    _________________________
    Chris Phillipo - Cape Breton, Nova Scotia http://www.ramsays-online.com
     
  16. In article <MOy_9.31498$A%[email protected]>, cnhyf-
    [email protected]enet.etext.org says...
    > In article <[email protected]>, Kinon <[email protected]> wrote:
    > >Mismanaged, for sure. But if Cannondale goes under, so what? There's lots of alternatives, and
    > >lots of competition. Weak, poorly managed companies should
    > >die. Does Cannondale make anything so unique that we'd all be worse off without it?
    >
    > Yes they do - they are the only company that will honor a lifetime warranty on the frames of
    > millions of cyclists. And they are also a key factor in repairs of some of their proprietary
    > designs - headshok parts anyone?
    >
    > --Paul
    >
    >

    Well that's what you get when you buy into something like that. Imagine how the people with $15,000
    Cannondale motorcycles feel. There may be as many as 10 of them out there.
    --
    _________________________
    Chris Phillipo - Cape Breton, Nova Scotia http://www.ramsays-online.com
     
  17. > Actually I think they make many unique things that we're better off without :)

    We used to sell Cannondale, and there are a lot of very good reasons why we stopped. However, even
    though we don't sell them, I think we're worse off without them around. Diversity and choice
    aren't such a bad thing, and I think it takes that diversity to keep many people interested and
    excited in what cycling has to offer. So whether it's Cannondale or anybody else on the chopping
    block, it's not something that brings me any joy or hope of increased sales for the remaining
    brands. Quite the contrary.

    Same thing happens when too many shops go out of business (as is happening around us). No one shop
    is going to be right for everyone, and it takes a certain number of shops in an area to really
    support cycling and make it convenient for people. For most cyclists, it's a choice, not something
    they're required to do. It competes with all manner of other ways to spend their time & money, and
    if it's too difficult for them to find a shop that can get their bike repaired (or even sell them a
    new one), they'll find another way to spend their money.

    --Mike-- Chain Reaction Bicycles http://www.ChainReactionBicycles.com

    "Chris Phillipo" <[email protected]> wrote in message
    news:[email protected]...
    > In article <[email protected]>, [email protected] says...
    > > Mismanaged, for sure. But if Cannondale goes under, so what? There's
    lots of
    > > alternatives, and lots of competition. Weak, poorly managed companies
    should
    > > die. Does Cannondale make anything so unique that we'd all be worse off without it?
    > >
    >
    > Actually I think they make many unique things that we're better off without :)
    > --
    > _________________________
    > Chris Phillipo - Cape Breton, Nova Scotia http://www.ramsays-online.com
     
  18. In article <[email protected]>, mikej1 @ix.netcom.com says...
    > > Actually I think they make many unique things that we're better off without :)
    >
    > We used to sell Cannondale, and there are a lot of very good reasons why we stopped. However, even
    > though we don't sell them, I think we're worse off without them around. Diversity and choice
    > aren't such a bad thing, and I think it takes that diversity to keep many people interested and
    > excited in what cycling has to offer. So whether it's Cannondale or anybody else on the chopping
    > block, it's not something that brings me any joy or hope of increased sales for the remaining
    > brands. Quite the contrary.
    >
    > Same thing happens when too many shops go out of business (as is happening around us). No one shop
    > is going to be right for everyone, and it takes a certain number of shops in an area to really
    > support cycling and make it convenient for people. For most cyclists, it's a choice, not something
    > they're required to do. It competes with all manner of other ways to spend their time & money, and
    > if it's too difficult for them to find a shop that can get their bike repaired (or even sell them
    > a new one), they'll find another way to spend their money.
    >
    > --Mike-- Chain Reaction Bicycles http://www.ChainReactionBicycles.com

    In the future, all bicycles will be Trek, resistance is futile.

    --
    _________________________
    Chris Phillipo - Cape Breton, Nova Scotia http://www.ramsays-online.com
     
  19. Spoking

    Spoking Guest

    Well said, Mike. I agree.

    Mike Jacoubowsky posted...
    > > Actually I think they make many unique things that we're better off without :)
    >
    > We used to sell Cannondale, and there are a lot of very good reasons why we stopped. However, even
    > though we don't sell them, I think we're worse off without them around. Diversity and choice
    > aren't such a bad thing, and I think it takes that diversity to keep many people interested and
    > excited in what cycling has to offer. So whether it's Cannondale or anybody else on the chopping
    > block, it's not something that brings me any joy or hope of increased sales for the remaining
    > brands. Quite the contrary.
    >
    > Same thing happens when too many shops go out of business (as is happening around us). No one shop
    > is going to be right for everyone, and it takes a certain number of shops in an area to really
    > support cycling and make it convenient for people. For most cyclists, it's a choice, not something
    > they're required to do. It competes with all manner of other ways to spend their time & money, and
    > if it's too difficult for them to find a shop that can get their bike repaired (or even sell them
    > a new one), they'll find another way to spend their money.
    >
    > --Mike-- Chain Reaction Bicycles http://www.ChainReactionBicycles.com
    >
    >
    > "
    >
    >

    --
    Spoking <^> _|_
     
Loading...
Thread Status:
Not open for further replies.
Loading...