General Cycling Discussion Have a cycling related question or comment that doesn't fit in one of the other specialty forums? Drop on in and post in here! When possible, please select the forum above that most fits your post!

BikeE 1992-2002

Old 08-29-02, 09:44 PM
Senior Member
Thread Starter
Join Date: Dec 2001
Location: New Jersey
Posts: 7,135
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 254 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
BikeE 1992-2002

BikeE Ungracefully Bows Out Of Business

AUGUST 29, 2002 -- CORVALLIS, OR (BRAIN)--Recumbent leader BikeE closed its doors and went out of business Aug. 23, the company told Bicycle Retailer & Industry News yesterday.

The move shocked few retailers, who had been unable to contact BikeE since mid-August, when the company disconnected its toll-free telephone number and took its web site offline.

Many had been unable to order certain models since June, when the company closed its U.S. assembly facility and moved to a smaller building.
Concurrently, it also reduced its orders to Taiwanese manufacturers and told many retailers it would not have fresh product until October.

Bob Brown, the company's president and a shareholder, blamed increased operating costs for the shutdown. He also said a weak post-Sept. 11 economy and two costly recalls this year played a role in the company's demise.

BikeE had as many as 30 employees but it had been trimming its staff over the last few months. On Aug. 23, it terminated its last four employees.

The company, the country's largest recumbent maker, sold approximately 10,000 bikes last year. One person close to the company estimated it had sales of $6 million last year.

BikeE turned over the collection of accounts receivables and liquidation of its remaining inventory to agents of its secured creditors, which Brown declined to name. Brown estimated that the company has about $500,000 of product left in inventory.

Brown said questions regarding receivables should be directed to (541) 738-4327, an independent agency. Questions regarding inventory can be directed to Brown at (541) 738-4390.

The move also pulled the warranty rug out from under retailers who sold the company's products. An estimated 30,000 bikes were sold in BikeE's 10-year existence.

"It really compromises the relationship between retailers and their
customers," said Dirk Reitsma, owner of D.J.'s Cycles, a BikeE dealer at in Belmar, New Jersey

Brown declined to reveal BikeE's outstanding debt, but he did admit that the company had never been profitable on an annual basis.
Dahon.Steve is offline  
Old 08-29-02, 09:48 PM
Joe Gardner
BikeForums Founder
Joe Gardner's Avatar
Join Date: Oct 1999
Location: Utah.
Posts: 4,249
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Wow, i had no idea they have been around for 10 years!
Joe Gardner is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.