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Mavic placed in receivership

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Mavic placed in receivership

Old 05-08-20, 11:07 AM
  #1  
bluehills3149
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Mavic placed in receivership

Although it seems more related to the shenanigans of the various shell companies that own Mavic (and not Covid related) it's kind of depressing to think if the stalwarts of the industry can't make money, who can?
https://www.cyclingweekly.com/news/p...vership-455575
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Old 05-08-20, 01:28 PM
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Yikes. So their cash flow problems predated the pandemic. Didn't know that.

Now I'm kicking myself for not snagging a set of their entry tubeless wheel/tire kits back in January when those were readily available and affordable.
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Old 05-08-20, 03:16 PM
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Speaking to France3, Meunier said: “Regent people came to Annecy in July 2019 to tell us that we were a sleeping gem, that they believed in Mavic. And since then, nothing. Not an investment, not an answer.”
Sounds like a buy, pillage and abandon. Standard equity fund practice, the hallmark of unrestrained capitalism.
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Old 05-08-20, 04:43 PM
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This might also be listed as a self inflicted fatal wound. They pretty much put all of the eggs ($1000 wheel sets) in one basket and then forgot to watch the basket. JMHO, MH
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Old 05-09-20, 03:40 PM
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Originally Posted by cybirr View Post
Sounds like a buy, pillage and abandon. Standard equity fund practice, the hallmark of unrestrained capitalism.
The worst words for consumers are "Equity Fund bought brand X" and "Shareholder Value." Kiss that brand goodbye and wait for the "in name only" cheap (not in price though) PRC replacement.
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Old 07-22-20, 08:36 PM
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Looks like mavic has new owners. Hopefully this manages to pull them through. the cycling world would not be the same without Mavic around.

Cycling Tips - Looks Like Mavic has a new owner
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Old 07-22-20, 08:47 PM
  #7  
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Sadly their components group is going to stay dead, History, I expect..
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Old 07-22-20, 09:16 PM
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Originally Posted by fietsbob View Post
Sadly their components group is going to stay dead, History, I expect..
Bring back the ZAP!!!!

Kidding on that one but they did some nice stuff at one point drivetrain wise. I have a friend who swears by his old Battalign running a largely Mavic gruppo with anorexic 21mm tires on it and he is a big rider,
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Old 07-23-20, 04:40 AM
  #9  
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I've had really good experiences with Mavic wheels.

Their AllRoad rims with no spoke holes in the tube area and straight, non J hook spoke look like things of beauty to me. Too expensive for me to buy on a whim though.
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Old 07-23-20, 05:15 AM
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My customer service experience when I had defective wheels (one defect was a widely know design defect) was terrible. Haven't bought a Mavic product since and don't plan to.
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Old 07-23-20, 08:39 AM
  #11  
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Love my Mavic Ksyrium Elite wheels. Hope the new owners of Mavic can continue the legacy and quality.
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Old 07-23-20, 09:09 AM
  #12  
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Have had Mavic rims on our mtn.bikes for a good while, and they've been bombproof--hopefully the newer stuff will measure up.
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Old 07-23-20, 11:05 AM
  #13  
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Originally Posted by canklecat View Post
Yikes. So their cash flow problems predated the pandemic. Didn't know that.

Now I'm kicking myself for not snagging a set of their entry tubeless wheel/tire kits back in January when those were readily available and affordable.
OTOH, I did and am feeling pretty lucky right now. I bought two sets of the Ksyrium Elite USTs with Yksion tires and they have been superlative.
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Old 07-23-20, 11:11 AM
  #14  
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Re: Mavic customer service....I've been running Mavic clinchers and USTs for about 15 years and never needed customer service. In fact, none of my wheels have ever needed to be trued. I hit a pot hole with both wheels at 40 mph and took them into an LBS and was told they were fine. So, there's that.
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Old 07-23-20, 11:26 AM
  #15  
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Originally Posted by indyfabz View Post
My customer service experience when I had defective wheels (one defect was a widely know design defect) was terrible. Haven't bought a Mavic product since and don't plan to.
You'd hope that the new ownership would improve that, while not allowing a reduction in quality of product.
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Old 07-23-20, 01:40 PM
  #16  
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""Sounds like a buy, pillage and abandon. Standard equity fund practice, the hallmark of unrestrained capitalism."

Spoken from a position of pure ignorance. Best to research more deeply to get the real story before criticizing.
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Old 07-23-20, 01:43 PM
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Originally Posted by bruce19 View Post
OTOH, I did and am feeling pretty lucky right now. I bought two sets of the Ksyrium Elite USTs with Yksion tires and they have been superlative.
bruce19, I have the same setup and love them.
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Old 07-23-20, 06:47 PM
  #18  
Leinster
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Originally Posted by TiHabanero View Post
""Sounds like a buy, pillage and abandon. Standard equity fund practice, the hallmark of unrestrained capitalism."

Spoken from a position of pure ignorance. Best to research more deeply to get the real story before criticizing.
It does sound like it's exactly what happened in the original purchase of the company that led to the problems, though. The company was bought, the new owners were then completely absent from any aspect of the company, and then it turned out nobody actually knew who the new ownership was. It sounds like at best some sketchy accounting practices, and at worst possibly some outright fraud,.
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Old 07-23-20, 07:07 PM
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Old 07-24-20, 07:13 PM
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Originally Posted by TiHabanero View Post
Spoken from a position of pure ignorance. Best to research more deeply to get the real story before criticizing.
Looks like I'm right and you're wrong, you twatwaffle.
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Old 07-25-20, 12:06 AM
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it may be good that old compamies go under; its known as "creative destruction" in economic science.

when u have companies been around a long time, these companies tend to play it safe. that means they stop innovating and even use they marketing position to prevent young, small innovative companies from succeeding.
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Old 07-25-20, 04:52 AM
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The first thing that popped up in the browser was from this article in Brain; https://www.bicycleretailer.com/industry-news/2020/05/11/receivership-will-alleviate-unsustainable-costs-mavic-regent-partner-says#.XxwMzXdFw2w"For all intents and purposes, it's business as usual in the U.S. and Canada," said David Steinhafel, the CEO. Steinhafel is a principal in Regent LP, the California-based investment group that acquired Mavic from Amer Sports last year.

While Regent bought the entire company, Steinhafel said the North American operations are separate legal entities from the French business that is undergoing restructuring. The French company, Mavic SAS, has been under management by a turn-around firm since February."

Looks as though the US and Canada operations, which are a separate company in a capitalist economy, have nothing to do with the French company, which is in a Socialist economy, and filed the bankruptcy notice. Not sure how critiizing capitalism works here or why it was necessary. My dad always reminded us kids that if you have nothing good to say, then say nothing.
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Old 07-27-20, 07:00 AM
  #23  
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Originally Posted by ramzilla View Post

If you're going to be stupid then you better be tough.
Is that the Mavic slogan?
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Old 07-27-20, 07:51 AM
  #24  
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Originally Posted by cybirr View Post
Sounds like a buy, pillage and abandon. Standard equity fund practice, the hallmark of unrestrained capitalism.
Kind of like what's happening to the Olympus camera camera division, recently sold to JIP. Sad to see.
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Old 07-27-20, 12:07 PM
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WARNING: Lengthy post ahead. Maybe helpful, maybe not. But if you are genuinely curious as to "how does this happen?" I may be able to shed some light.

Let's say I once worked for a good company. They made money, had a revered brand, and many thousands of employees.

At one point, the company was put up for sale. It wasn't troubled, but for various reasons the ownership group wanted to focus their efforts elsewhere. A Sneaky Guy found Two Euro Friends to loan him a huge pile of money to buy the company. He'd have to make good on some pretty tough interest payments, though! (Interest payments that the company's current success couldn't even support).

So, the Sneaky Guy got everyone together, and said "We're going to grow this company I just bought!!!! And, uh, if we don't, my new Vice President of Bad News (who is getting a huge pay package for this honorable position) will give you a clear presentation on how you won't really have a job. GO GET 'EM!!!!"

Meanwhile, the Two Euro Friends got a sweet 8-figure payout. After all, they stayed up late for a whole month signing Important Documents. Meanwhile, as brand new members of the company's board, they paid Sneaky Guy a tidy 8 figure sum. Sneaky Guy and Two Euro Friends are now already rich, before doing a single thing except buy the company and plunge it into debt!

Well, dad gum it, wouldn't you know, come a year or two, and: "SPECIAL MEETING. WE NEED TO TELL YOU TO IGNORE THE MEDIA, WE ARE NOT GOING BANKRUPT!!!" Ten days later, receivership, default on covenants, and - wait for it - "the terrible layoffs we never wanted to make, but now have to."

As the mess got sorta sorted out, and people lost their pensions and their jobs, Sneaky Guy and his Two Euro Friends skated with their payouts, ostensibly to giggle up their sleeves and sip champagne while choosing their next takeover target.

Guitar Center had this happen to them, if you want a name of a business that had fine cash flow, was 'taken private,' and died from debt servicing while the one percent got richer.

The idea that Mavic went south from not selling expensive wheel sets is inaccurate.

And if you want to know why this stuff keeps happening, and people let it keep happening, it's because no one wants to know, as long as they can keep getting nice wheels / Fender guitars / etc.
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