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Yet another Cannondale fluff piece...(10 posts)

Yet another Cannondale fluff piece...Akirasho
Jan 29, 2003 1:31 PM
... this was posted by a user on another forum... a letter to shop owners from Joe Montgomery.

Dear Cannondale bicycle retailer –

I apologize for having to make this important announcement to you in
such an impersonal manner, but given the number of Cannondale dealers
around the world, it is simply impossible for me to speak to each of
you directly.

As you may already know, Cannondale announced yesterday that we plan
to file to restructure our company under Chapter 11 of the Bankruptcy
Code, and 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
servicing warranty issues and shipping bicycles and other cycling
products 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 compete successfully and
continue providing you with innovative cycling products, just as we
have throughout the duration of the motorsports project.

For our dealers, our intention is that the filing will hardly be
noticed at all. You will deal with the same account manager, credit
manager and in-house dealer service rep. In addition, we have
received a commitment for substantial post-petition financing from
our lenders 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 look forward to resuming
production in our Bedford bicycle facility in the coming weeks.

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 vendors
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 for you to
sell.

Our plan for the next several months is to provide you with the best
possible support, and to keep dealer service, customer service and
your sales at the highest levels. With your help, we are very
confident that we will be successful and continue to grow Cannondale
as an ever-stronger and ever-more-profitable part of your business.

Many companies that have filed for reorganization – including Harley-
Davidson, Macy's, and Toys 'R' Us – have strengthened their
businesses and are performing well today. These success stories
shared a common element, and that is teamwork. With your continued
support, we are optimistic that we can produce similar results.

Thank you for your understanding, and for your help in moving through
this challenging period. We will keep you informed as we go forward.

Sincerely,

Joe Montgomery
Founder & President


Be the bike.
I wonder how it effects sponsored teams nmcyclopathic
Jan 29, 2003 3:23 PM
teamctisevn
Jan 29, 2003 4:09 PM
from velonews.com

Cannondale still sponsoring Mountain-bike team
Just a day after filing for Chapter 11 bankruptcy protection, Cannondale announced that it had reached an agreement to co-sponsor a mountain-bike team with the German communications giant, Siemens Mobile.

The team will compete under the name Siemens mobile-Cannondale in the 2003 and 2004 World Cup seasons and include several of the top names from the old Volvo-Cannondale squad. Rainer-Wurz.com, a management firm owned by former mountain bike racer Markus Rainer and Formula 1 driver Alex Wurz, helped to bring the companies together and will run the team.

The new squad includes Christoph Sauser (Switzerland), Roel Paulissen (Belgium), Tinker Juarez (U.S.), Hannes Pallhuber (Italy) and Franz Hofer (Italy) for cross-country, and Cedric Gracia (France) and Petra Bernhard (Austria) for downhill and four-cross. The riders come from the Rainer-Wurz.com team and the former Volvo/Cannondale squad, the winningest team in mountain bike history.

The team's contract runs for two years and the squad will compete in the World Cup, the World Championships and all major international and European mountain bike races. The Siemens mobile and Cannondale logos will be featured prominently on the race jersey, the three Cannondale race bikes (the Gemini for downhill, the Jekyll for four-cross and the Scalpel for cross-country), team post-race clothing and the five team vehicles. Cedric Gracia's participation at the Red Bull Ride last week in Australia marked the official debut of the new Siemens mobile-Cannondale team.
actuactually I meant second/third tier teamscyclopathic
Jan 30, 2003 7:38 AM
like SoBe, local teams co-sponsored by Cdale etc
this filing only affects US manufacturing...Akirasho
Jan 29, 2003 4:25 PM
European divisions of Cannondale are not affected... and sponsorship of the Pro peloton goes on as usual... for now.

Be the bike.
He mentions Harley Davidson???Alexx
Jan 29, 2003 4:19 PM
Geez-they nearly went down the toilet 20 years ago! I sure hope they aren't that badly off!!
Nice Lettercipolini2b
Jan 29, 2003 4:27 PM
That was a reassuring letter. I definitely think that eliminating the motorcycle division will result in a more direct focus on what they do best -bicycles.
Ditto that! (nm)jtferraro
Jan 29, 2003 7:04 PM
Like Sesame Street Skit--One of these companies don't belongteoteoteo
Jan 30, 2003 6:30 AM
Is it just me or is comparison to any of those companies realistic? Cannondale is a on quite a different scale than the likes of Harley, Macy's, and Toys R' Us. Outside of our little Bike Geek world the general public would not recognize the name.

The quote below at least shows they are trying something I've never seen from them before, ;-)))

"Our plan for the next several months is to provide you with the best
possible support, and to keep dealer service, customer service and
your sales at the highest levels."

Okay..off my rant now. C-dale road rigs are pretty sexy--just had bad MTB warranty experience with them in the past.
From a PR standpoint, this is perfectly apprropriate. (nm)PseuZQ
Jan 30, 2003 12:04 PM