|Whats w/ GT||CFVeloDan|
Jun 21, 2001 8:41 AM
|I was talking to the owner of a local bike shop, I noticed he didn't have many GTs for sale. He usually does. So I asked him about it and he said GT has some money trouble at the moment. Anyone have some info on this issue.|
|Money troubles..||Jay H|
Jun 21, 2001 8:46 AM
|I've heard the same thing about GT, rumor or truth, I don't know but I've heard about that for some time now, but not from the usual sources. Could be distributor problems too, related to GT or not.. |
|Local LBS says........||Len J|
Jun 21, 2001 8:54 AM
|his distributor indicated that the following companies are hurting fiancially as a result of the economic downturn:
Jun 21, 2001 9:45 AM
|Schwinn is having money problems ( Schwinn owns GT and Schwinn fitness ) But The lack of bikes is more a function of a pissing contest with a supplier who is also in money problems(this supplier is the one who sold all those Schwinn and GT frames to Supergo that they are selling right now, these frames do not carry a Schwinn or GT warranty). Currently Schwinn is looking for financial assistance and was hoping to be helped out by one of their major Japanese suppliers Merida but just the other day Merida bought a 49% share of another faltering company Specialized. So Schwinn/GT's fate is still up in the air.|
Jun 21, 2001 10:02 AM
|Schwinn does not own GT. Here is some info. |
Questor, an investment group, bought Schwinn Cycling and Fitness in '97. Then they purchased GT Bicycles. This formed Schwinn/GT Corp. Questor restructured both companies and revenues increased. Questor is not in the bike business. They are in the business of making money. Now that they have increase revenues and the overall value of the companies, they are looking to sell and net huge profits. There have been several offers made but at this point no decisions have been made.
There also may be supplier issues involved but at this point I think the sale is the bigger reason for low supplies. They don't want any more inventory to put on the books.
|Like it or not.....||grz mnky|
Jun 21, 2001 1:10 PM
|...if Questor owns some bike companies then they are in the bike biz by definition. Any going concern is in the business of making money. Operations done purely for love are little more than charities. |
It's pretty typical for a group of investors to try and snatch up under performing or under valued companies, give them a face lift and then sell them. They may know little or nothing about the nuts and bolts of the biz, but they can recognize an attractive company from it's financial info.
Jun 23, 2001 12:14 PM
|This Schwinn is not the company begun by Ignaz (?) Schwinn about a 100 years ago; the Schwinn plants in Chicago and Greenville (?) are long since closed and Richard Schwinn sold out and formed Waterford. This company is Schwinn in name only. So, if they fold, maybe Richard Schwinn can pick up the family named company and do a better job than he did the first time around.|
|re: Whats w/ GT||stevea|
Jun 21, 2001 12:46 PM
|sold to huffy, its a done deal & Schwinn to.Just think Home Growns at K Mart|
|Doesn't sound good||MeDotOrg|
Jun 21, 2001 3:54 PM
|Read this April article in Velo News:
...it says that Schwinn/GT has retained Credit Suisse First Boston to help find a buyer...
It's wierd, Schwinn at one time was like the General Motors of the bicycle world. When I was growing up it was THE bike to have. (This was before I saw my first Pugeot 10-speed..) I still remember how thrilled I was in the 3rd grade to get my first 3-speed Schwinn.
|re: Whats w/ GT||reliable source|
Jun 21, 2001 5:48 PM
|Questor does own Schwinn and GT
Incidentally, Syncros is a subsidiary of GT...
Questor is losing lots of money, not making any. Sales reps have been laid off, and the employees at both companies are in wait and see mode.
Questor is looking to sell their holdings as a whole unit or break them up into pieces- (ex: sell Schwinn to one buyer, Schwinn Fitness to another, etc). Basically they are trying to cut their losses anyway they can.
This I am not positive on, but I have heard rumors the supergo frames were originally whole bikes, sold by the company who was contracted to do the assembly. (Schwinn Contracted with a US company to assemble their bikes, this contractor was owed money by Schwinn/GT, so they sold their onhand inventory to Supergo. Supergo then stripped the frames and is selling them as framesets only)
Questor is still looking for a buyer, they have not sold to Huffy or anyone else. BUT Huffy has expressed interest in part of Questor's holdings, along with other big players in the mass merchant market (Pacific, for example) ...
So that's it. Some people have it "half right" some people are way off entirely.
Last I heard Trek is doing fine. Raleigh is hurting badly financially, however ...
|re: Whats w/ GT||nutmegger|
Jun 21, 2001 7:56 PM
|This seems to make sense to based on circumstantial evidence. Supergo was recently selling Time Millenium forks that had been stripped off of bikes. Is that not the stock fork on the Fastback?|| |