Spoonrobot 

Good for them. I've always found Grant to be the most endearing member of the bicycle industry and his transparency and direct communication style is a big part of that.

CliffordK

I wish them luck

I think they would have done well to buy out a small company like Bruce Gordon and build up domestic production, although perhaps there are benefits of starting with new equipment.

gorillimo

I'm in! Sign me up for two cards!.

I wouldn't mind having a Riv frame, but the reality of bikes I can ride without worrying about them in a rack downtown wins out. I've bought small stuff from them, including "Just Ride", Grant's book. One I encourage people to read, but don't loan out, because I want mine back......
Did the Riv-Like build on a Rockhopper Comp. North Road bars, Ergo grips wrapped with cloth tape, SPD/flat pedals etc. Very happy with it. I'm in about $200 total. And, it's good enough....

veganbikes

Catalogs are fun to look at but the internets can has all the catalogs and more, even VHS cassette tapes that play through tubes and pocket sized Coleco-vision on your portable computer telephone. If only someone had told Grant this he might not have been in such dire straits. They even have a Portable Computer Telephone for just reading books like say Lord of the Rings or the RBW Catalog ; )

Glad they didn't sink but hopefully they figure out this business thing so they stay more viable.

jyl

Sometimes good things happen. I'm happy.

repechage

Interesting to note that some shipments were late and some early. The early are an interesting look into the world of manufacturing in Asia. That part of the bicycle supply chain is hurting too obviously.

tbo

From an accounting perspective, they have now incurred $215,000 in liabilities in order to raise $215,000 in cash. Well worth it, and I'm glad it seems to have worked.

If your goal was to donate to the cause rather than actually buying an item later at a discount, let them know and let them destroy your code or whatever they gave you. This way they can take the liability off the books. It would get transferred to Owner Equity or Retained Earnings, depending on their accounting structure.

700

I just had to say: In before ten!
NB410!

gugie 

+1

Lascauxcaveman 

Some of us bought hard goods, not gift certs. Hopefully stuff they didn't have to back-order.

The Rivraffle pot is up to $130, including one playa donating a Hail Mary and declining to have his name in the hat. We've got a good gang, here.

jyl

Time for some accounting geekery. How will each $10 card flow through the books? Starts out as a balance sheet item, $10 current assets (cash) and $10 liabilities (what is the line item?). I assume it immediately shows up on the cash flow statement too (where? Operating cash flow?) When the card is used, does $10 go on the revenue line with the appropriate allocation to COGS and operating income? Is there some breakage assumption that will eventually remove the card from the balance sheet if it is unspent after some years?

n0+4c|u3

Not in California. Not allowed.

tbo

This is because vendors or stores were issuing gift cards that were good for one year (or less) or started charging "fees" on the cards so that the card would be useless over time. They got the cash and left the holder of the card high and dry.

The liability has to stay on the books forever, sort of. As the liability ages (just like Account Receivables), it gets less "valuable" and collectible. You can write off AR at a specific rate, but I don't remember the rules for "writing off" liabilities, if they exist at all.

Lascauxcaveman 

In the state of Washington, that $10 gift card is - legally - worth $9 one year and a day after issue. After two years and a day, $8, and so on, declining in 10% of face value annually, becoming - legally - worthless in 10 years. This is considered fair enough so a gift card issuer doesn't have to carry the financial liability of lost/unused gift cards in perpetuity.

In practice, the card issuer may (or may not) actually honor the face value even if it has aged into - legally - less than face value.

joesch

Im a Rivendell supporter and owner of a Resurrectio single speed bike using an 85 schwinn traveler frame. Its a great trail bike. Im glad to see them surviving and hope they can thrive. Love to see nice steel frames and classic steel resurrections !

gugie 

But we're not quite to ten pages, a requirement for any G.P. thread...

RiddleOfSteel

Took a look at their website. Some lovely components for sale, ones I certainly appreciate that they are selling those. Too bad I have spare parts and am hooked on the drug that is local bikes shops with used parts for sale...

/one post closer to ten

Andy_K 

Maybe we should talk about whether or not we should all be riding in wool underwear.

nlerner

You mean there are those who are not?!

noobinsf 

If I can donate my cash to keep Riv afloat, I can certainly donate one post to the equally noble cause of securing Grant’s narrative legacy.

brian3069

Come on 10!

bikiola

I'll bite. I still think the financial benefits to the end user of something like this are dubious at best, but congrats to them for raising this money. I only hope the goodwill returns to us one way or another.

cb400bill

I’m in for one.

wschruba

Tried it, too humid here.

jj1091

Sometimes the end users create their own goodwill by selfless acts.