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02-20-26 | 10:00 AM

#1

prj71

Senior Member

Joined: Jun 2015

Posts: 5,804

Likes: 1,820

From: North Central Wisconsin

Trek in Trouble?

For a year and a half, Trek’s internal daily sales performance dashboards have been “all red” – down year on year every day as the tail of the bicycle industry bust proves much longer than the boom that preceded it. Then, on Monday, January 12th, those dashboards turned green; but any celebration or sense that there is light at the end of the tunnel was put on hold. Staff had already been asked to work from home on Tuesday and Wednesday of that week, with a significant round of layoffs on the way.

As Trek prepares to mark its 50th anniversary, the company is simultaneously grappling with layoffs, excess inventory, and a business model built for a market that no longer exists.

This behemoth of the bike industry is in trouble. It’s no secret within the industry that Trek is crippled by enormous overstock and debt servicing costs on that inventory. But a former Trek employee at the managerial level told Escape Collective that Trek's situation is particularly dire. “It’s been a solid year and a half of just all red on the daily sales reports. Just down versus prior year, things are moving slowly.”

https://escapecollective.com/layoffs...is-in-trouble/