"The 33"-Road Bike Racing - Ergomo files Chapter 11

Just heard about this, I guess I timed my Ergomo to SRM switch perfectly. I have a couple of teammates who have theirs in for service and now may not get them back.:eek:

How can a German company file for Chapter 11?

Probably should have seen this coming when Giordana stopped distributing them; sounds like they had tons of problems.

I thought this was some pun about Campy Ergopower shifters and 11 speed... been reading too much bike tech lately.

closeouts on ergomo powermeters?

Here is the message that my teammate got from Ergomo:

Hello,

as you may have noticed it became quite difficult to get hold of us recently. Customer Service was and is our main goal. However due to financial problems we had to file Chapter 11 recently. That means for all of us that for the next about 4 weeks our possibilities to respond to enquiries as well as servicing ergomo products is very limited.

Lawyers and court are presently checking together with our management and interested investors if and how ergomo can be kept alive in the future. This will take several weeks. During those weeks we are not allowed to work as we all would like.

Please kindly be patient and contact us again about end of August 2008. We sincerely hope that until then our problems will have been solved.

Sincerely your

ergomo Team

How can a German company file for Chapter 11?

Yes. Isn't Chapter 11 an American thing? Protection from bankruptcy so steps can be taken to salvage the company?

If this is true, you might see them continue but owned by someone else. This has happened to many 'famous' bike brands that were run by enthusiasts instead of businessmen. They quietly acquired a new business partner: The Taiwanese factory they owed money too.

Then they operate with their foreign face in place as is nothing had ever happened.

I do know that ERGOMO has a Taiwanese sourcing agent but have absolutely no clue is this is the case. Just some wishful thinking from an ERGOMO owner...

:rolleyes: Kapitel elf

They're friggin bankrupt, Ergo, it's time for a Powertap.

They're friggin bankrupt, Ergo, it's time for a Powertap.

I do wheel testing for a company here and also run a few different sets of wheels. PT is not an option for me.

If my ERGOMO craps out it's time to sell my left nut and go SRM...

They're friggin bankrupt, Ergo, it's time for a Powertap.

Time to step up you swag weenie and get the real thing...SRM

SRM have an ANT+ version yet?

SRM. Seriously Righteous Money.

What's $2K between friends?

I do wheel testing for a company here and also run a few different sets of wheels. PT is not an option for me.

If my ERGOMO craps out it's time to sell my left nut and go SRM...

Except when you have 2-3 bikes. Even with 3 sets of wheels it's still cheaper to go power tap, though it would be wired.

Except when you have 2-3 bikes. Even with 3 sets of wheels it's still cheaper to go power tap, though it would be wired.

Swapping around an SRM is as close to as easy as changing wheels. I run the same crank on my crit and TT bikes.

SRM have an ANT+ version yet?

Yep. The new SRM wireless is ANT+.

[QUOTE=Racer Ex;7215492]Swapping around an SRM is as close to as easy as changing wheels. I run the same crank on my crit and TT bikes.[/QUOTE

+1

Chapter 11 is Bankruptcy Reorginization. It allows the Bankrupt company the opportunity to reject unfavorable contracts, schedule debt repayment over time, and come up with a workable reorginization plan to keep the company operating as a going entity. (which the creditors get to weigh in on, and the cOurt has to approve.)

However, from the tenor of that note, it sounds like unless Ergomo gets a major cash infusion from a new investor, or additional financing that Ergomo is toast and the Chapter 11 will be converted into a Chapter 7 (liquidation.)

Chapter 11 is also a procedure under U.S. law, and not German law, right?

Which brings us back to my original question: since Ergomo is a German company, how/why would they file for bankruptcy in U.S. courts?

Generally there's a small company in other markets that imports your products for distribution.

Chapter 11 is also a procedure under U.S. law, and not German law, right?

Which brings us back to my original question: since Ergomo is a German company, how/why would they file for bankruptcy in U.S. courts?

I'm not sure where Ergomo is actually incorporated, and as ElJamoquio points out, there may be another company handling distribution in the U.S. which might be a U.S. company.


Whatever the case, foreign corporations with assets and debts in the United States, can be subject to U.S. Bankruptcy laws, and jurisdiction in U.S. bankruptcy courts.

How exactly that would play out in Ergomo's situation is beyond my knowledge of the facts, and my very limited bankruptcy expertise.

gotcha, thanks for the clarification.

Gita was the US distributer but Ergomo switched to Fit Multisports. I spoke with a very helpful woman in Germany about the switch and she said that Fit was better educated about the ergomo and they felt that it would help the product. The problem is that Fit has the worst customer service on the planet. After two weeks of constant emails and phone call I had not recieved a return call or email. I called Germany aagain and low and behold Fit called me an hour later.