|Schwinn bikes at Wal Mart?||Mike M|
Aug 16, 2001 5:08 AM
|Another blow to the cycling industry? Schwinn / GT to liquidate assets under bankruptcy court rulings. Huffy is the leading buyer and will likely obtain the company. Here is an interesting quote from Huffy off Yahoo Finance.
Chris Snyder, President of Huffy Bicycle Company added, ``We are excited about our multi-channel distribution strategy for Schwinn® and GT® products and are confident that both customers and consumers will benefit from enhanced distribution.''
|Schwinn bikes at Wal Mart? nothin' wrong with that! nm||davidl|
Aug 16, 2001 5:20 AM
|re: Schwinn bikes at Wal Mart?||Velocipedio|
Aug 16, 2001 6:18 AM
|As I observed elsewhere, I doubt you'll see GT at Walmart.
If the Huffy folk are smart -- and they probably are, even if we can't stand their bikes -- they'll keep using GT as the premium brand. You'll find it in bike shops, pure and simple, and they'll fall over themselves to keep its race cred.
Schwinn resonates in the mind of every parent and grandparent who lusted after one in the 70s. That'll be the level-2 brand. You'll find it in essentially the same places you find it now, and probably in general sports shops and MAYBE one model in department stores.
This will be the FAMILY bike brand. The emphasis will be on comfort bikes and hybrids.
Huffy will be the resolutely low-end brand you'll find at Walmart -- the bike to buy your 10-year-old to tool around town on.
|I wish I shared your optimism ...||Humma Hah|
Aug 16, 2001 6:23 AM
|... I'd not be at all surprised to find the Cruiser SS and its kin in Wal-Marts.|
|That's not so bad ...||Leroy L|
Aug 16, 2001 7:02 AM
|remember, one of the reasons, which probably include bad mgmt and a downturn in the economy, is that they didn't sell enough bikes.|
Aug 16, 2001 7:06 AM
|I agree that Schwinn is and will be the "family" brand. I also think that Huffy is salivating at the opportunity to line up Schwinns alongside the other bargain-bin bikes at Wal-Mart. If you're an unknowledgable parent looking for a bike for your kid and your options are Pacifica, Murray and Schwinn, which one are you gonna buy?
Makes me a little sad because I ride a beautiful Reynolds 853 framed Schwinn Peloton and I'm not happy that the brand name will likely be so devalued.
|re: Schwinn bikes at Wal Mart?||Cliff Oates|
Aug 16, 2001 7:51 AM
|FWIW, a company named Direct Focus Inc. (DFXI) is also bidding for Schwinn. This company is led by the former president of GT and is promising to pay off all the creditors. With $280mm in sales, they're smaller than Huffy. On the other hand, their net income is more than 4 times greater than Huffy's ($60mm vs. $13mm). It ain't over 'til it's over...|
|Tre: Schwinn bikes at Wal Mart?||Mike M|
Aug 16, 2001 8:40 AM
|There is hope afterall. There is some form of bid protection for Huffy but I don't understand bankruptcy law. I hope for the independent, not Huffy.|
|Tre: Schwinn bikes at Wal Mart?||Cliff Oates|
Aug 16, 2001 8:59 AM
|I believe the bid protection for Huffy comes in the form of compensation for the costs it has incurred auditing and inventorying and otherwise coming up with a valuation for Schwinn. My LBS owner is pulling for the DFI bid too, since he has been a Schwinn dealer since I was riding a stingray (that would be 36 years ago) and selling Schwinns to kids is his bread and butter business.|| |