I am a fan of Rivendell. If I had not stumbled on Rivendell in the early days of its founding, I am not sure I would be here in the C&V section. (More generally, I am a fan of people who do things differently than most. I may not use or even like their products, but I am all for human creativity being applied to problems and the diversity of ideas that come from it). So, take all that into account when you read my thoughts. Note-I do not own a Rivendell but I hope that changes in the future. I have bought parts and things from them over the years.

I think Rivendell has a set of devoted fans (me, included) who follow the company as much as the bikes. They gather in person and online to discuss all things Rivendell and bikes in general. I follow Rivendell on social media and I participate in the RBW google group. Generally speaking, this offering is most likely to appeal to members of that group. Those folks know what they are getting into when they buy in (though I am sorely disappointed to learn about Brent's experience. If I were him, I would try to reach out to Grant directly.) The email explained what they wanted to do with the money. And, as I read it, they also explained that the timing of bike frame shipments has created a small capital gap. If people don't want to cover that gap, they won't. No harm in offering.

As far as the suggestion that most businesses would go to a bank, Rivendell is definitely not most businesses. Think of the small bike brands that have gone under. Think of the brands that were bought out by bike big brands and then disappeared (Fisher and Lemond come to mind). Rivendell is still around largely because they are different. If I was in the position Rivendell is in, I would much rather offer store credit plus a little extra to my customers who have kept me afloat all these years than to pay that interest to a bank. Not to mention the paperwork and hassle required to get a loan.

I'm in as I wanted to buy a few things from RBW. BITD, I sold Bridgestones at the bike shop I worked in and ended up with a few as well. Nice bikes and Grant Peterson has interesting things to say about bikes. The hate he tends to generate is just weird; so is the adulation.

Sorry, I guess the word I should have used is pretentious... That was the underlying subtext there.
I guess I'm never going to be a person that gives people that are better off financially than me free money for bicycle parts (or anything else) that are literally being sold for well above list. It's the only place online that it is actually cheaper to buy part's from your LBS. As they say, a fool and their money...

This thread has brought me many laughs already as well as a few chin scratches. Thank you, everyone.

The bike industry is seasonal. There are several ways to survive the annual cycle where expenses exceed revenue for a certain period of the cycle. And that negative flow is CERTAIN. I don't begrudge Grant's way of doing things, as it seems to work for the business and even for some customers. I appreciate what he does for the industry even though I may never have bought anything from the business. More power to him. I find his writing to be funny and insightful, and maybe that's why he irritates some people.

I worked as a shop mechanic for a few years. Maybe things have changed and what I said is no longer true. Please let me know. One shop owner explained to me that he ran his personal life on credit cards during the lean months. He kept paying us employees. There were two of us through the winter; I was full time and the other guy was part-time. He got the merchandise on credit from the wholesalers. There might be better ways to get through, but his way was one way. It's not realistic to say he should build a business that is profitable year round, as this is the nature of the industry. At that shop I mentioned, we also sharpened ice skates, and I suppose that helped a bit but not much. This was in 1981 in Cambridge, Massachusetts where people skated a fair bit. I wonder if they still do now, with the climate change. Probably not on the Charles River anymore in any case.

Maybe stay abreast of the biz: https://www.bicycleretailer.com/

Comes as ZERO surprise, given the tumult in the industry. So many companies going under, many on the brink. Even Trek is struggling.

A friend high up in the bike biz "lost it all" a few years ago. House, wife, sports car & retirement: POOF! Gone. And this guy's no greenhorn new to the industry, naive of its pitfalls. He's a seasoned veteran who was overwhelmed by the "perfect storm" of bad conditions. Feel terrible form him; luckily he's smart and motivated and has already landed on his feet.

I have another friend who lives near RBW who I've been trying to coordinate a "day out" with: visit RBW, R&A Cycles and enjoy a few miles on the vintage road bikes. Met a RBW employee just over a year ago at a neighborhood party and have been meaning to set up a visit. This news only encourages me to do it this spring before it's too late.

Much like Paragon Machine Works recent announced closure. Another good friend grew up with the Norstads in Marin. Then I learn of a connection to them (and Scott Nichol of Ibis and the Koski brothers, among others) via a cultural club I'm a member of. So a few years ago when I was "in the area," I pop my head in to meet Mark and, of course, he's at "Made" in Portland. So I missed that opportunity.

Oh and my dad's partner was Phil Wood's physician "back in the day." I was just a FEW YEARS too young to have been able to take advantage of that cool connection.

Companies don't last forever! Take advantage of them while you can.

The bike industry is part of the outdoor activity industry, beyond seasonal, there are demographic and macro economic changes that are going to shake the bike biz for a while.

how things rebuild after requires a crystal ball.
I do not have one.
24 years ago I thought a retreat would come, it has taken a while. My collection if part of a for profit biz should have the assets marked down before this. The way of things.