To our customers; past, present and future -
As you may already know, Cannondale announced on January 27th our plans to file to restructure our company under Chapter 11 of the Bankruptcy Code. We also announced 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 shipping bicycles and other cycling products, and we are servicing warranty issues, 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 produce innovative cycling products, just as we have throughout the duration of the motorsports project.
For our customers and dealers, our intention is that the filing will hardly be noticed at all. We have received a commitment for substantial post-petition financing from our lenders, and 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 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 suppliers 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.
Many companies that have filed for reorganization - including Harley-Davidson, Macy's, and Toys 'R' Us - have strengthened their businesses and are performing very well today. We're very hopeful and optimistic that ours will be a similar success story. In the meantime, our plan is to provide our customers and dealers with the best possible service and support.
Thank you for your understanding, and for the many, many messages of support we have received.
Founder & President