Mountain Biking - cannondale going to chapter 11

some say beforehe month is over..
I think its because of the motorcycle division..
will cannondale be forsale in Kmart?

Theres tons of this talk goin around that cannondale is gunna die. Is it finally true? Every time I read it people say that its all wrong and stuff....whats the story now? I never liked cannondale anyway hhehheehheheehhe:D

I cant find the web page that tells the story now!
It had said the where having problems due to their motorcycle
divison, a sales rep told me that they have not gotten a delivery
from shimano in the last few months. that would surely be the kiss of death for a bike company. they are a good U.S. bike company and I would hate to see them go.

The motor sports division is their downfall. I recently read a dirt bike test in a magazine (Popular Mechanics, or something like that) and the Cannondale finished dead last.

If Cannondale goes Chapter 11 it won't be from bad bicycles, but, rather, bad management.

If Cannodale goes Chapter 11 you can be sure that another company will pick up its bike division (for a song) as the brand is too strong to die.

I've read numerous articles and it appears that they are working on restructuring to pay of debtors and keep afloat. How long? No idea. It is the motorcycle division that is killing them, but Mr. Montgomery has publically stated he'll fold the company before his abandons (sp?) the MX division. This may be the ultimate demise for such a great bike manufacturer. The company has recently laid off about 700 workers, and is not giving any indications as to delivery times of bikes in production (or NOT in production as the case may be!). Suppliers are no longer sending product unless paid at time of delivery. Another bad indication of problems.

Chapter 11 or 13. I hope not!

L8R

The reason there quads arnt sellin is because there too expensive. Polaris just came out with a new sport quad that is much cheaper than the Cannondale,$5999. I dont know how they expect to compete with the other quad manufactures. They would be better off selling the stuff for the quads, and only build bikes.

Anrt they in Pennslyina?

Originally posted by a2psyklnut
I've read numerous articles . . .

Where?

The Bicycle Retailer:

Here's a link: Bicycle Retailer (http://www.bicycleretailer.com/bicycleretailer/search/article_display.jsp?vnu_content_id=1777416)

L8R

Originally posted by a2psyklnut
The Bicycle Retailer:

Here's a link: Bicycle Retailer (http://www.bicycleretailer.com/bicycleretailer/search/article_display.jsp?vnu_content_id=1777416)

L8R

See http://biz.yahoo.com/e/021112/bike10-q.html
Note the 13 million in op expenses (which usually does not include taxes or below-the-line expenses) and 9 mil in gross profit. That says a lot.

There stock (BIKE) droped to under a dollar (now $0.91) yesterday... Dosent look good, shall we start taking bets for a buy out? :)

EEK!

Sounds like the Schwinn of 2003... and we all know where Schwinn is now- being sold at K-Mart! With that stock going below a dollar, at some point soon, they'll be downgraded and taken off the stock market- mabye moved into penny stocks? I hope they either get bought by a real bike company or go to a bankruptcy judge and discharge their debts and get rid of the division that's holding them back.

Too bad. They made good bikes. Then again, so did Schwinn. What's going on with all these established, respected bike companies going bankrupt these days?


K Brown

bikes are just like computers, once you buy one you wont need another one for a while. and advents in technology happen too quickly so the top of the line now may become completely obsolete within the next four years. look where the top notch tech companies are now.

I hope they pull through. I thought them taking on a motorcycle line was really lame, personally. I fail to see how they can even compete with massive companies like Suzuki, Yamaha, Honda and others who have WAY more budget to invest in technological advances. But from what I've read their dirt bikes are getting better reviews than before. But that still doesn't help that they're several million dollars in debt. I've got 3 Cannondales.. I wonder what's to happen with my warantee support?

Originally posted by Jim311
I hope they pull through. I thought them taking on a motorcycle line was really lame, personally. I fail to see how they can even compete with massive companies like Suzuki, Yamaha, Honda and others who have WAY more budget to invest in technological advances. But from what I've read their dirt bikes are getting better reviews than before. But that still doesn't help that they're several million dollars in debt. I've got 3 Cannondales.. I wonder what's to happen with my warantee support?

I think you can assume even if they went under they would be bought and restructured (pacific type thing). I don't think canondale would just let themselves disapear :)...

Yea, but I don't want them to become another Walmart brand, you know? It'd be awesome if they stayed in the racing scene and continued to uphold their quality standards and warantees. But who knows.. I've got 3 Cannondales, so I doubt I'll be needing a new one anytime soon :o

I think cannondale's debtors will want their money.
So we as "consumers (sp) will not see any change in price.
And I dont think they will be in kmart . Well not this year.
I think they already pull there racing teams (not sure tho).
With all the recalls they are having I hope they still honor their
warrantees. Has anyone have a problem with that yet?
With the laid offs of 700 workers I wonder who is left to do the work.

I hope they DO go belly-up. It will be a good lesson to other bike companies.

Originally posted by cycletourist
I hope they DO go belly-up. It will be a good lesson to other bike companies.

Ouch...just curious what lesson do you think Canondale going under will teach other companies?

Well...one lesson might be to stick to what you know and love; and not to challenge the big boys with big capital on their own turf. When's the last time Honda made a great bicycle? Can you imagine what Cannondale might have accomplished if it had spent a tiny fraction of the capital it squandered in its motorsport division in devloping its bicycle division?
The comment by a C-dale exeutive that he would fold the company before dropping the motorsport division is eerily reminiscent of der fuehrer's last days---decreeing the whole German nation should die for failing to live up to his leadership. Whatever its faults, it's very sad to see a once strong American bicycle company gutted by bad management.

I remember when C'dale came out with their offroad dirt bikes. It was managed very badly from the start. They started pushing their bikes way before they were ready to sell. At about all the big races their marketing people would show up, promise a release date, only to let it pass time after time. They finally did release several bikes, then they had to recall all of them for various problems. About 2 years after the first announced release date, they finally started selling them. They even had a factory team, but they usually ended up with a dnf for some kind of mechanical. It was a good idea- fuel injection, electric start, plus lots of other "latest technology" doo-dads. They just pushed too hard, too fast.

It's a shame too, because they built some sweet bicycles.

Yes I totally agree. A lot of people think that the recalls were on their bikes and not in the motor division... which is actually the other way 'round. In fact I talked to a guy at work yesterday and he didnt even know, until a couple of years ago, that C'dale was making motorcycles and quads.

I personally think that C'dale would be picked up by another respectable bike manufacturer before it would EVER be sold in K-mart. C'dale has too awesome of an R&D department for their bicycles to drop to the level of Schwinn... no offense to anyone here who owns one but Schwinn never even came close to C'dale just because of their research.

As far as the layoffs, that happens every year from what I hear just because of the season. In the winter only a fraction of the people ride compare to warmer months and the sales are way down across the nation during that time.

What I would love to see happen is them to take the Motor Division, tie it around Mr. Montgomery's neck and dump in into the deepest river in PA. If C'dale does indeed fail and close its doors it will be 100% fault of Mr. Montgomery. This imbecile doesnt deserve to run a lemonade stand let alone a company like C'dale.

Yea, it's just the motorcross division that's running them into the ground. Once you get a bad reputation, you don't live it down. They need to just get rid of that since it's obviously a huge drain on them. They used to be one of the biggest and most successful, but now they're really hurting. It'd be a shame to let a company like that go down the tubes.

Originally posted by cycletourist
I hope they DO go belly-up.

Muhahahhhhahahhahttp://64.207.13.28/mysmilies/contrib/ruinkai/FIREdevil.gif

It sounds to me like the moto division will be spun off once C'dale is bought out. It also sounds like most of the permanent layoffs that occurred were from the moto division, which can be expected given its performance. While I probably won't end up on a 'dale roadie bike this year as planned, I won't expect them in discount stores. I think they'll be fine.

The real question is this: What made them think they could compete with a company that makes lawn mowers, cars, motorcycles, quads and a little robot guy that can pick up your paper for you?

There is also a different aspect of that problem

What about replacable parts for their bikes - what about sealings for forks, what about bearings for rear suspension. Whould it be possible to get it once the company is gone?

Last year I bought the scalpel800 and i love the machine - what would i do once the bearings are dead for the rear suspension.?

My thoughts exactly. There's no way they could compete with a multi billion dollar industry. Honda, Suzuki, Kawasaki and others have BILLIONS of funding behind them. They have many motor divisions. I knew that idea was ******** from the beginning, but I didn't imagine they'd bankrupt themselves with it. I thought they were smarter business wise than that.

As you may know or not know, I'm a defender of Cannondale's whenever someone mentions "Crack-n-fails", yet doesn't own one much less ridden one. I will add however, that their decision to go after the MX had me scratching my head. Especially in the method of doing so. Did they produce a bike, then release it and wait for accolades? NO, they started spouting they had a revolutionary design even before a working prototype was made! They got some good press, but failed to meet any deadlines time and time again! When they did finally get some bikes into production, they had numerous recalls. Sales dropped. Their only plus, was their 4 wheeler, performance was top-notch, but so was the price. Did they think they were going to have a huge number of cross-over buyers from the cycle division? I know a lot of mt. bikers who ride MX, but very few Roadies. And those that do ride, are brand loyal to tried and true companies like Honda or Yamaha or...etc.

I really hope they are able to restructure, perhaps sell of the MX division and go back with wounded pride and stick with the cycling division that made them great!

Originally posted by a2psyklnut
Did they produce a bike, then release it and wait for accolades? NO, they started spouting they had a revolutionary design even before a working prototype was made! They got some good press, but failed to meet any deadlines time and time again!

This has been a pattern with Cannondale. Remember the mountain bike designed by Skooks Pong? It was to be the next big thing, but never saw production. I've always like Cannondale's innovations, but at the same time I've been mystified by their insistence on using non-standard parts like the headshock. I hope they make good use of the grace afforded by Chapter 11.

Well, when they released their current models, I was impressed to see a lot more components from reputable manufacturers on them. i.e. Magura, Manitou, more Shimano and less CODA.

I was really impressed with the LEFTY MAX (5" of travel) with Manitou internals.

L8R

Nothing is going to happen to Cannondale bicycles. They are NOT going to be sold off, they are NOT going out of business.
If anything, they will improve their bicycles now that the MX divsion is shut down. All the assets for MX are going to be sold off.

How do you know? Do you have any newest information?

This is a very interesting turn of events and foreshadows their plan to keep the cycling division alive and well:
Cannondale Announces new Race Team Sponsorship (http://www.rainer-wurz.com/eng/news.htm)

L8R

Does this mean that I should not be looking at the R 3000 I was thinking about this spring? These bikes seemed to be getting great reviews for the CAAD 7 frame and the components are awesome for the price. Now you are all scaring me away from them.

What gives?

Jeez guys... C-11 is restructuring not "going out of business". As Cannondale mentions, Harley Davidson, Toys R Us and many others have filed for Chapter 11 in the past and come back stronger.
It is all financial and Cannondale's lenders have already given them money to keep them operating normal until they become cash-rich again. Part of that will come from the sale of the MX division.
Cannondale is just fine. C-11 is simply a financial restructuring and Cannondale has a fine relationship with it's lenders. If anything, they will be more aggressive in helping with customer service, support and product.

It's never good to go in the red but NOTHING is there to indicate anything other than a fine future for the bicycles. The only way this won't happen is if people all of the sudden stop buying Cannondales. Besides which, nearly 45% of Cannondale $ is from overseas business that is NOT in C-11. That part of Cannondale bicycles is running just fine.

There is a long way to go before Cannondale is sold off or "go out of business".

It's cause to be concerned, however, the feeling is that once Cannondale sells off the Motorsport Division, their cycling division will be as strong as ever. As a matter of fact, the motorsport division has been funded from the beginning from profits from the cycling division. If nothing else, you may have a bargaining chip now for getting a better deal on the bike!

IMO, they'll be around for a long time!

L8R

The mx division will be sold off to Cannondale's lenders or the highest bidder so it's not a matter of if or when-- it's how much $ they will get for it.

There is no bargaining chip because there is nothing to bargain.

I read somewhere (probably this thread) where there was talk of Harley taking the dirt bikes. I would not be at all surprised by this since off road bikes are about the only thing Harley doesn't sell now. They recently tapped into the sport bike market when they bought out Buell. Maybe it will all turn out okay after all.

on mbaction home page - there is some more info about C'dale - including opinions of its founder - it should explain a lot