Aliso Viejo, CA- ESM Bike and Ere Research begin 2019 with ESM Bike becom-ing the North American importer for the innovative tire and saddle brand based in Switzerland.

ESM Bike will be launching the brand to the US IBD market at January's CABDA West event in Del Mar, CA in booth #633.

ESM Bike will be receiving tires first, during the first quarter of the year, with saddles arriving during the second quarter. Sean Kneale, Founder of ESM Bike said, "we're really excited to work with Piet and his unique approach to product design, and we're confident US consumers will appreciate his eye for detail- whether looking at the tires or saddles. Retailers have lots of options for tires and saddles, but Ere truly brings a different approach to products that will help retailers sell them."

ESM Bike will also work with Ere Research to manage additional distribution in North America, giving both retailers and distributors a single contact for the brand.

Ere Research products have already created a lot of positive interest, and the recent announcement of Fabian Cancellara joining the brand to develop tires has given a further boost in interest and credibility.

ESM Bike will be offering sales specials and incentives to interested retailers during the CABDA West show.

Wilton, Conn. – January 8, 2019 – Cycling Sports Group, a division of Dorel Industries (TSX: DII.B, DII.A), announced today that Eugene Fierkens has been appointed General Manager, CSG Europe. Adriano Nascentes, the division's current General Manager, has assumed the role of Chief Operating Officer for Dorel Juvenile Europe.

Eugene joins CSG from Specialized where he held various leadership roles beginning in 2004 including Managing Director for European Regions, a position he maintained for over 11 years, and most recently, Global Leader, Business Development.

"Eugene has a terrific track record of commercial success and an in-depth knowledge of the European markets and IBDs," said Peter Woods, President and CEO, Dorel Sports. "He is an avid road cyclist and his leadership and passion for the industry are evident both personally and professionally. I'm delighted to have him join our team as we kick off 2019."

"This is a great time to be joining CSG," said Eugene, who will be based in the Netherlands at the Oldenzaal CSG office. "The new products are outstanding and the new Cannondale branding work is incredibly exciting. I'm looking forward to getting out in the market and meeting the team and our dealers."

###
ABOUT CYCLING SPORTS GROUP
Impassioned by the goal of delivering high-performance products to both the professional athlete and the recreational cyclist, Cycling Sports Group (CSG), a division of Dorel Sports, encompasses several powerhouse cycling brands, including Cannondale, GT, Schwinn, Charge, Fabric, and Guru. In Dorel Sports, brands also include Schwinn, Mongoose, Caloi, IronHorse and Kid Trax. Dorel Industries Inc. has annual sales of US$2.6 billion and employs approximately 9,200 people in facilities located in twenty-five countries worldwide. For more information, visit www.cyclingsportsgroup.com.

(BRAIN) — "How hard can it be to run a trade show?" Jim Kersten asked himself after hosting Chicago-area retailers at Interbike social events. A few years later, Kersten found out when he became show director of the resurrected CABDA show in Chicago, which has now expanded to a second event in California.

Kersten and host Arleigh Greenwald discuss the merits of regional trade shows on the latest Shift Up podcast, available now. You can listen to the latest show below, or subscribe via most podcast apps or Spotify. Previous episodes can be seen at bicycleretailer.com/podcast.

Kersten tells Greenwald that regional shows can be slower paced and better tailored for the needs of the region's dealers. "We try to make more of an intimate feel. We do that by not having 600 booths there," Kersten said. Kersten also shares some of CABDA's plans to expand following the cancellation of the 2019 Interbike Expo.

CABDA West will be held at the Del Mar Speedway, near San Diego, Jan. 16-17. CABDA Midwest will be held at the Renaissance Schaumburg Convention Center & Hotel near Chicago, Feb. 13-14.

Show notes:

cabda.com | CABDA West schedule | CABDA registration | CABDA articles on Bicycle Retailer 

Editor's note: This article appeared in the January 1 issue of Bicycle Retailer & Industry News.

CUPERTINO, Calif. (BRAIN) — Many customers who walk into mountain bike retailer Trailhead Cyclery ready to buy their next bike have researched and compared brands, models and spec. They know what color, build kit and tire size they want, and how much they're going to spend.

But even though — or maybe because — they've pored over geometry charts, measured their existing bike and done some test rides, many of these savvy shoppers still need help finding the right size.

"There is an enormous amount of dollars being spent and hyper attention to details. So there is consternation about buying the wrong thing," said Trailhead owner Lars Thomsen. "Most of the conversations I have with riders choosing their next bike usually involve fit."

While progressive geometry like slacker head angles, steeper seat tube angles, longer toptubes and shorter stems has made modern mountain bikes more comfortable and confidence-inspiring to ride, fitting riders to these frames isn't as straightforward as it used to be. And looking at geometry charts can sometimes create more questions than answers.

For one, toptubes are longer than ever on most modern mountain bikes, so that measurement has become all but irrelevant when it comes to sizing. Instead, many manufacturers emphasize the reach, or the horizontal distance measured from a vertical line drawn through the center of the bottom bracket to the center of the headtube, a number that is not contingent upon geometry differences.

But basing sizing on this number can be problematic because customers tend to consider reach the distance between the nose of the saddle and the bars — which does change as geometry, namely the seat tube angle, changes.

As seat tubes have gotten steeper, the distance between the saddle and bars in many cases is shorter, which can make longer-reach bikes actually feel shorter. Because of this, some riders, no matter how long the toptube, feel cramped.

"The front of the saddle to bar changes with seat tube angle, but actual reach, what the industry is calling reach, from bottom bracket to headtube, does not," said Brian Blair, buyer at mountain bike retailer The Path Bike Shop in Orange County, California. "If they're looking at a chart and think, 'Well, my old bike has a reach of 200 but this new bike has a reach of 240, that's going to be really long.' But then they get on it and they feel cramped. They measure saddle to bars and realize this thing is shorter.

"Bikes are longer. But cockpits are not longer," he added. "Reach is the same no matter the geo, and that measurement worked for a while. Now we've gone far enough and seat angles have gotten so steep, that needs to be factored in."

Getting RAD

Author, coach and skills instructor Lee McCormack believes that focusing on the distance between the feet and hands is a more accurate and better way to size riders to the modern mountain bike. His RideLogic method also takes into consideration that the typical mountain biker is rarely in a static position; riding a bike on trails, especially in technical terrain, is dynamic.

McCormack, who co-authored Mastering Mountain Bike Skills with Brian Lopes, has used RideLogic to fit more than 1,000 riders to their bikes. His method evolved from dialing in his own bike setup to be friendlier to his bad shoulders, and while he has shared it through his online coaching school, seeing so many people riding ill-fitting bikes prompted him to make the method more widely available. With his new e-book Dialed: The Secret Math of a Perfect Mountain Bike Setup, McCormack has made RideLogic available to the public for the first time.

"The fits people get are usually from road bike fitters. That is a problem — they're just not made for dynamic movement. The old way was to start from the feet and set the seat. From the seat, the bars were set. But on a mountain bike, you move a lot and there are lots of angle changes. You move your seat up and down, but the handlebar position relative to the feet stays the same," he said.

Specifically, McCormack's method sets bikes up to get the rider into a perfect position for shredding trails. Determining a person's ideal Rider Area Distance and getting the bike close to that creates the maximum arm range for descending, braking, cornering and dropping, helping the rider access their potential power and optimal range of motion for pushing and pulling.

A rider's RAD measurement is determined by body size and proportion, handlebar width, crank length and pedal and shoe thickness. In his book and on his website, McCormack supplies equations that will work for most people to calculate RAD in millimeters. A rider can measure the RAD of their bicycle by running a string from the top of one grip to the other to create a horizontal line, then measuring from the bottom bracket parallel with the frame to a centerpoint 1 centimeter below the string on the bars. To dial in a bike's RAD, riders can lengthen or shorten their stem and/or raise or lower the stem by adding or removing spacers. As a last resort, they may have to try a smaller or larger frame.

McCormack has also developed the RipRow, a sizing and training tool he has sold to gyms, physical therapists and some bike shops, including Trailhead Cyclery, which uses it mainly to help customers with sizing and fit. The RipRow is an unstable platform equipped with a set of adjustable handlebars that can be pushed and pulled to mimic riding bumpy terrain. If handlebars are at the ideal height, the user should be able to stand up straight with arms straight when the hands are on the grips. That measurement is the RAD, and can be used to find the right size frame.

"I can put a customer on what I think is their right size, but at first they will feel like the bike is too short. Maybe they're used to riding a longer stem or are just used to a size that's too big for them but have been told it's their right size by other riders or have had a professional fit that was geared toward sitting on a seat and being efficient, more of a road-oriented fit," Trailhead owner Thomsen said. "So I say drop the seat and stand on your feet. What does that feel like?

There's not much more that I can do in a parking lot to help them understand or test it out. But I can show them on the RipRow what it looks like and feels like when the RAD is the right length. It's usually enough to convince most riders."

As progressive geometry becomes the norm with more brands introducing models with ultra-slack head angles, long toptubes and steeper seat tube angles, retailers will likely still have some educating and customer convincing to do — after all, this evolution is relatively new. The customer who hasn't upgraded their bike in a few years won't necessarily understand these changes right away.

"The customer with the 10-year-old bike and longer stem will notice that all the stems today are not longer than 50 millimeters, whereas a few years ago you would only see smaller sizes with a shorter stem and that was usually about 70 millimeters, which seems long now no matter what size the bike is," Thomsen said. "And they see the toptube length and think it's way too long, like the customer who comes in and is like, 'Whoa, that SB150 [Yeti 29er] is too long! It's like a limousine.' So you have to explain why the length is better put into the frame than the stem so we're not cantilevering the bike and why the bike might feel small when seated. It's hard to express in words why that's all OK.

"But these geos are better, we're seeing it morph, and we're getting closer to better-fitting bikes right out of the box," Thomsen added.

With a veteran transportation reformer stepping into the role, Bike New York seeks to join cycling advocacy with education and public events

New York has come a long way as a cycling city, but it's time for a new round of policy innovation and quality improvements.
NEW YORK— Bike New York announced today that it is launching an advocacy program to help New York become the world's best city for cycling, and that Jon Orcutt, long-time NYC sustainable transportation advocate and former Policy Director for the New York City Department of Transportation, has been hired as its new Communications Director to lead that effort.

"We couldn't be more excited to make advocacy for better cycling conditions a bigger part of our mission and everyday work," said Ken Podziba, President and CEO of Bike New York. "Jon is an innovative and iconic force in urban transportation development, and we are confident that he will guide Bike New York toward an active role in the effort to make our city accessible, safer, and more enjoyable for all cyclists."

Orcutt has been a leader in transportation policy reform for nearly 30 years. From 2007-2014, he served as part of the agency leadership at the NYC Department of Transportation that oversaw the launch of major street design reforms, including America's first parking-protected bike lanes. Orcutt was one of the architects of the Citi Bike system, and coordinated the development of Mayor Bill de Blasio's Vision Zero action plan.

Prior to joining NYCDOT, Orcutt served as executive director of both Transportation Alternatives and the Tri-State Transportation Campaign, overseeing growth and rising influence at both organizations.

After leaving New York City government, Jon consulted on urban transportation strategies with a variety of governments, organizations, and companies in Europe and the Americas. For the past three years, he has headed advocacy and communications at TransitCenter, an activist foundation that has developed a robust policy agenda for rebuilding public transportation in New York and across the United States.

"New York has come a long way as a cycling city, but it's time for a new round of policy innovation and quality improvements. A bigger bike network requires better maintenance policies and more institutional support across city government. I'm really looking forward to bringing Bike New York's reach and resources to the effort to win these changes," Orcutt said.

ABOUT BIKE NEW YORK
Bike New York is 501(c)(3) nonprofit whose mission is to transform lives and communities through bicycling. Bike New York is best known for its Five Boro Bike Tour, ridden annually by 32,000 participants each May on 40 miles of car-free streets and highways. Proceeds from this and all Bike New York events support the organization's free bicycling education program, the largest of its kind in the nation, which provides New Yorkers with bike riding, safety, and repair skills. In 2018, Bike New York taught bike skills to more than 28,000 children and adults. http://www.bike.nyc

SHANGHAI (BRAIN) — Multiple Asian news sites are reporting that bike share giant Ofo has dissolved its overseas business unit, retreating from operating in the U.S., Hong Kong, Singapore and France.

According to the reports (such as this one in Chinese Entrepreneur magazine), the general manager of Ofo's overseas division in China told employees on Tuesday that the division would be closed. The division's employees, who number more than 50, were given some options to transfer to lower paying positions or receive some compensation if they resign before Thursday.

Ofo began expanding outside China in late 2016 and at one point was operating in more than 20 countries and 50 cities outside China. The company has not announced specific plans to end operations in the overseas cities were it continues to operate. 

BOULDER, Colo. (BRAIN) — Has your company been negatively affected by the 25 percent tariff increase on e-bikes and e-bike motors imported from China? If so, PeopleForBikes and the Bicycle Product Suppliers Association invite you to submit comments to the U.S. Trade Representative in support of their request to exclude e-bikes from the tariffs.

The deadline to submit comments is Friday, Jan. 11, before midnight EST. Submissions can be filed online at regulations.gov/document?D=USTR-2018-0032-1548. Click on the "Comment Now" box in the upper right corner and fill out the form.

"Our ask, for anyone who manufactures and imports e-bikes from China, is to provide a letter of comment to the USTR supporting our letter and asking that e-bikes and e-bike motors be excluded from the scope of that 25 percent tariff increase," said Morgan Lommele, director of state and local policy for the organizations.

BPSA and PeopleForBikes filed their exclusion request with the USTR last month. The Trump administration announced the tariff increase in August as part of its trade dispute with China. The administration also increased tariffs on most conventional bicycles and components by 10 percent in September. The BPSA/PFB exclusion request addresses only the tariffs on e-bikes and e-bike motors.

The 10 percent tariff on conventional bicycles and components was scheduled to increase to 25 percent on Jan. 1, but the second increase has been postponed to March 1 pending negotiations between China and the United States.

Lommele said it's important for companies to weigh in individually with the USTR and discuss how the increased tariffs have specifically affected their businesses. The BPSA and PFB suggest that comments address such points as the fact that e-bikes are an increasingly critical part of the U.S. bicycle industry and represent the fastest growing sales segment.

They also recommend emphasizing that the global supply chain for bike and e-bike manufacturing is centered in China and is difficult to relocate to other countries; that e-bike sales are critical for strengthening IBDs, most of which are small businesses; and that brands haven't experienced the theft of intellectual property or technology by manufacturing in China.

Several companies and organizations have already submitted comments to the USTR, including Bosch, Brose, Genze, the National Bicycle Dealers Association, Pedego, Pure Cycles, and Uber. Their comments are also available through the link.

Hood River, OR (January 9, 2019) – Dakine Equipment, LLC - a division of JR286, Inc., in partnership with Marquee Brands - announced today the appointment of David Orr as Global General Manager. A veteran in the outdoor and sporting goods industries, Orr will be responsible for leading all aspects of Product Creation, Sales and Operations for Dakine.

Jonathan Hirshberg, Founder, President and CEO of JR286, Inc. states, “I am thrilled to announce David Orr as the Global General Manager of Dakine Equipment. His deep and passionate understanding of brands and distribution is the perfect choice to help us execute the mission of making sure we deliver the best products in the world to service the outdoor enthusiast through the incredible core distribution channels the Dakine team has developed over the years. I look forward to supporting David as he puts his talents and expertise to work behind this amazing team and brand that we are fortunate to begin working with.”

Orr commented, “I'm honored to be part of such a distinct, global specialty brand with 40 years of unique history and product innovation.  I am looking forward to helping unleash the passion, people and promise of Dakine! I look forward to getting started with our great teams in Hood River and Annecy, France, and our specialty retail partners around the globe.”  He added, “I am also excited to tap into the global operational platform that JR286 has built to maximize the opportunities that lie ahead.”

Serving in global leadership roles at industry-leading brands including Keen, Timberland, Reyn Spooner and adidas for the last 30 years, Orr mostly recently founded Strategic Sales Solutions LLC; a consulting company to brands and organizations that helps successfully position themselves based on their vision, mission and core competencies. In his new role at Dakine, Orr will be based out of the Hood River office, reporting directly to Jonathan Hirshberg at JR286, Inc. 

About Dakine Equipment, LLC
Founded on Maui’s North Shore in 1979 and headquartered in Hood River, Oregon, Dakine is an outdoor sports and lifestyle brand offering snow, surf and biking bags, backpacks, gear and accessories to outdoor enthusiasts. The brand got its start when it created an innovative new surf leash that became a breakout success among Hawaii’s surf scene. Since then, Dakine has continued to deliver innovative, high quality equipment and accessories built to perform in the harshest conditions and accompany the most fearless athletes. Dakine Equipment, LLC, is as a result of Marquee Brands acquiring the Dakine brand and all related intellectual property and entering into a long-term license agreement with JR286, Inc., becoming Marquee Brands’ long-term operating partner for the brand.www.dakine.com

About JR286, Inc.
Headquartered in Southern California since 1989, JR286, Inc. is an innovative, global leader in product design, development, sourcing, manufacturing, and distribution of athletic, fitness, and outdoor equipment and accessory products. Through a global operational footprint in North America, Europe, China and Southeast Asia, JR286, Inc. is positioned to service its global customer base. The company has a long-standing, exclusive global license with Nike covering hundreds of sports related accessories and equipment. It also operates the wholly-owned Vertra sun care brand. www.jr286.com 

About Marquee Brands
Marquee Brands is a brand acquisition, licensing and development company. Sponsored by Neuberger Berman Private Equity, a business of Neuberger Berman, one of the world’s leading employee-owned investment managers, Marquee Brands targets high quality brands with strong consumer awareness and long-term growth potential. Marquee Brands seeks to identify brands in various consumer product segments with the goal of expanding their reach across retail channel, geography and product category while preserving the brand heritage and enhancing the ultimate consumer experience.www.marqueebrands.com  

Madison, WI – January 09, 2019 - Planet Bike has updated its minimum advertised price (MAP) policy for 2019. As of January 1, 2019, Planet Bike has increased MAP so that it is now the same as the brand’s listed MSRP.

“We continue to look for ways to build upon our brand value and support our retail partners. We believe this update will accomplish both of these priorities,” said MAP policy director Jereme Noffke.

If you have questions about Planet Bike’s revised MAP policy or would like to request a MAP/MSRP price list, please contact map@planetbike.com. 

About Planet Bike
Planet Bike loves the balance that the bicycle brings to the world and its power to make people, communities and the planet healthier. In addition to creating products that make cycling safer and more enjoyable, Planet Bike pledges time, resources and profits to organizations working for sustainable transportation solutions.

Come ride with us!

DURHAM, N.C. (BRAIN) — Friday is the deadline for bidders to submit offers for the assets of Advanced Sports Enterprises, the parent of Performance Bicycle, distributor ASI, and an array of brands including Fuji, SE, Breezer, Kestrel and Roubaix. An auction will be held next week if competing qualified bids are received.

The sale proceeds will go toward paying back ASE's debts. They include $88 million owed to secured creditors and at least $20 million owed to unsecured creditors, who include many bike industry suppliers. Claims are still being accepted (a list of some of the largest unsecured creditors from the industry was in BRAIN's November 17 story about the bankruptcy filing).

On the other side of the ledger, the company owns a small amount of real estate and other property totaling about $15 million. The rest of its assets include store leases, proceeds from liquidation sales, and the trademarks and related intellectual property. What anyone will pay for those assets is the big unknown.

As the deadline approaches, ASE and its creditors are working to remove any issues hanging over the trademarks that could diminish their value, while other entities — including Specialized, Trek and Ideal Bike — are showing up asserting their rights.

Meanwhile, all 102 remaining Performance stores remain open, but on Wednesday the company released a list of the planned closing dates for 40 of the stores.

Last week a bankruptcy judge allowed ASE to "abandon" about a third of a million dollars' worth of inventory that was in transit, or in port, when the company filed for bankruptcy in November. However, retailers might be relieved to know that at least some of that inventory has been recovered by the suppliers, which will reduce their financial exposure and keep the inventory from being dumped on the market.

We take up each topic separately below.

Trademarks — and bundling — key to auction proceeds

ASE owns land and buildings assessed at $5.7 million. In court documents, it valued some of its brands — those associated with ASI's merger with Performance in 2017 — at $2.4 million. That includes Performance Bike, Nashbar, and house brands like Forte and Spin Doctor, but not the ASI bike brands. The $2.4 million is apparently how those brands were valued when ASI and Performance merged in 2017. Likewise, ASE's goodwill was valued at $4.3 million, the book value used at the merger. Neither valuation means anything when the assets are auctioned.

In court documents ASE has not estimated a value for its many other brands, trademarks, social media and web domains. Hilco Streambank, a broker that handles the sale of intellectual property, is marketing those ASE assets.

In marketing materials, Hilco notes that the Fuji brand dates to 1899, making it one of the oldest bike brands in the world. The brand had sales of $77.5 million in 2017, selling 185,000 bikes according to Hilco.

ASE's Breezer brand had sales of $10.8 million in 2017, while SE Bikes had sales of $9.6 million and Kestrel $4.5 million that year. Sales of Tuesday and Phat Cycles-branded bikes totaled $800,000.

Performance Bicycle's online sales totaled $22.7 million in its fiscal 2018, according to Hilco, which did not publicly show sales through Performance's brick-and-mortar stores. Bike Nashbar's online sales were $25.4 million in fiscal 2018.

ASE's other brands include Nichibei, Oval Concepts, Americano, Travel Trac, Axiom, Spin Doctor, Transit and more. The company also owns dozens of web domains and social media accounts related to the brands. For the Axiom trademark, ASE has a coexistence agreement with Canadian distributor Live to Play, which sells noncompeting bike products under the same name. 

"ASE offers a broad range of innovative, relevant and desirable bicycle brands and related assets, with a strong wholesale and brand management division, complemented by an e-commerce platform and retail stores," Hilco said in its marketing materials.

The assets are being examined by several companies inside and outside the industry, including a sporting goods retailer and several of ASE's creditors. Some of the largest potential buyers appear to be interested in cherry picking one of the bike brands, with Fuji and SE probably the most desirable. Those close to the case said ASE is likely to garner the most value if it can sell a bundle of brands and other assets to a single buyer. "The question is whether the parts are worth more than the whole," one source said. 

The bid deadline is noon Eastern time on Friday, Jan. 11.

Copies of the bidding procedures order are available at the website of Kurtzman Carson Consulting, LLC. Those interested in bidding can contact Mike Smith at D.A. Davidson & Co. at msmith@dadco.com or, for the IP, contact Richelle Kalnit at Hilco Streambank at rkalnit@hilcoglobal.com.

The auction will be held at 10 a.m. Jan. 15 at the Durham Convention Center in Durham, N.C. at 10 a.m. Only qualified bidders, debtors and consultants will be allowed in.

Don't expect closure on the 15th. The sales process may be messy since competing offers are likely for various combinations of assets or the entire package. Any messes could get tidied up at a court "Sale Hearing" to consider the proposed sales, scheduled for Jan. 22. Given the complexity of the case, it could be longer before the industry knows who is the new owner of the ASE's brands, some of which have been industry mainstays for decades.

Specialized and Trek make appearances

The Roubaix bike model trademark is a category of its own. Fuji has sold a Roubaix model since 1992 and has been licensing the trademark to Specialized for exclusive use in the U.S. since 2003 (ASI's Fuji Roubaix is an exception to the exclusivity). Specialized has been registering the trademark itself in many other countries since 2002.

So far, the court has not rejected the Specialized license agreement as ASE requested last month.

Last month ASE asked the bankruptcy court to end its licensing agreement with Specialized, which ASE said would make the trademark available to any buyer and increase its value at auction. The official committee of unsecured creditors supported the motion.

Specialized objected to the motion, which could jeopardize its use of the trademark on its popular bike line. In a Dec. 28 filing, the company argued, among other things, that ASE hadn't backed up its position that the trademark was more valuable if the license agreement were ended. Maximizing that value so that creditors recover as much of their debt as possible is the key metric the court uses in making decisions. 

So far, the court has not rejected the Specialized license as ASE requested, although the issue could be resolved before the bid deadline on Friday. A Specialized spokesman did not comment on the subject, but it would be surprising if the company was not quite interested in obtaining U.S. rights to the Roubaix name.

On Wednesday, the bankruptcy court agreed to let Specialized submit evidence related to its objection under seal because the company said the evidence contains confidential trade information. 

Trek Bicycle filed an unrelated objection with the bankruptcy court. The Wisconsin company said it has licensed some intellectual property to ASI since 2016 and said it discovered the licensing agreement was viewable by potential bidders, despite confidentiality agreements that should have kept it out of sight. Trek told the court the license is not transferable — in fact it is even tied to ASI's current CEO, Pat Cunnane, remaining in place. ASE removed the license from public view and the issue is apparently closed.

If nothing else, Trek's motion revealed that the company is among the many who are poking around ASE's online "data room" list of available assets. 

Ideal promises appeal

Last month the bankruptcy court ended ASE's trademark and manufacturing agreements with Ideal Bike, the Taiwan-based manufacturer, despite Ideal's objection.

Ideal's attorneys notified the court that they were appealing the decision to the U.S. District Court for the Middle District of North Carolina, and asked the bankruptcy court to stay its decision pending the appeal. On Jan. 4 the bankruptcy court denied the motion to stay.

There's no record that Ideal has filed the promised appeal and Ideal's attorneys have not responded to requests for comment from BRAIN. As the bid deadline approaches, it's not clear whether an appeal will add uncertainty about the value of the brands, reducing their value. 

Stores open, sales continue

ASE sent an email to Performance store employees Wednesday informing them that 40 store locations are set to close this month. The 40 stores are those that ASE had identified as unprofitable at the time of its bankruptcy filing. Some stores may reopen immediately under new ownership. Closing dates have not been announced for the other 62 stores. 

According to court records, the liquidation sales at Performance stores and online were bringing in a total of $2.8 million to $3.8 million per week in mid-December. A total sales figure for the liquidation to date wasn't available. ASE has to pay payroll, rent and other regular expenses out of the revenue, plus a fee to the liquidator company, Gordon Brothers Retailer Partners, but profits go to paying off creditors.

In November, ASE issued Worker Adjustment Retraining Notification (WARN) notices for 60 employees in Pennsylvania and 200 in North Carolina, saying those employees were due to be laid off on Jan. 15. 

Abandoned inventory recovered

Last week the bankruptcy court granted ASE's request to abandon inventory that was in transit at the time of its bankruptcy filing and was being held by a broker, Expeditors International of Washington, Inc. 

The inventory, worth about $330,000 wholesale, was in something of a gray area in bankruptcy law because it had come into port before the Nov. 16 bankruptcy filing but was not actually in ASE's possession on that date. Expeditors was holding the inventory until it was paid for freight, duties and other charges, including accumulating storage fees. The suppliers were not paid for the products.

The inventory included products from SRAM, WTB, Topeak, Kemco Group, Elite, Lezyne and others, as well as Performance house-brand products that were sourced by Ramiko, a Taipei, Taiwan-based exporter. 

Several of the brands are now working with Cycle Force Group to recover the products, said Nyle Nims, the company's president.

"We've taken action on behalf of some suppliers to gather and consolidate their goods ... the suppliers shipped in good faith and we are helping them get their products back in good faith," he said.

The suppliers are paying for Cycle Force services and costs owed to Expeditors. Cycle Force is having the products trucked to its warehouse in Iowa. Nims said Cycle Force would retain the Performance house-branded products at least until ownership of those brands is determined at the asset sales this month. He said none of the products are being offered to third parties like Amazon.

PARK CITY, Utah (January 9, 2019) — POC, a leading manufacturer of ski, snowboarding and cycling helmets, eyewear, apparel and protection, has named Brendan Murphey as Marketing Manager for North America. With over fifteen years in the outdoor industry, Murphey has established himself as a product expert and agile marketer with the experience to direct POC's holistic marketing efforts for both its snow and wheels categories.

"Brendan's product and marketing experience will allow him to make an immediate impact on POC's growth and brand development," said Ben Coates, POC's North American Managing Director. "There's a lot to look forward to at POC in the coming years and we're pleased to add Brendan to the team that will take us there."

Murphey joins POC following five years at Giro Sport Design, where he was responsible for overall brand direction and go-to-market strategy as Senior Brand Manager. Earlier in his career, he focused on product marketing and development in roles with Quiksilver and Burton Snowboards. At POC, Murphey will lead all facets of the brand's omni-channel marketing approach across North America – with a focus on Retail Marketing, Events, Go-To-Market Tools and B2B Marketing aspects.

"In a relatively short time, POC has pushed the industry with unique aesthetics, technical design and an unrelenting commitment to its mission to reduce the consequences of accidents for snow sports athletes and cyclists," said Murphey. "I feel fortunate to be part of a team who share a passion for this mission and being active skiers, snowboarders and cyclists – I can't wait to get started."

POC will introduce its 2019 Snow collection in January at the Outdoor Retailer Snow Show in Denver, Colorado. For media appointments or meetings with Brendan at the show please contact Patrick.king@backbonemedia.net.

TORONTO (BRAIN) — The e-bike brand Elby is relaunching as Elby Mobility following a private investment. The company has expanded its partnership with the new owners of BionX International, the manufacturer of OEM and aftermarket e-bike drivetrains. Besides the private investment, the company is working with the Business Development Bank of Canada’s Green Tech Fund, an incubator for sustainable tech and commercial research.

Elby will continue a strategic partnership with BionX and equips its current S1 model generation with BionX's D-Series motor. It said it will have inventory, technical support staff, service capacity, and intellectual property available to provide post-sales support.

The company said it has held its flagship S1 model to its original price of $2,999.99 ($3,299.99 CDN).

"Our mission is to inspire a new era of mobility by delivering the best personal transportation experience," said Scott Macwilliam, the managing director at Elby Global. "As a result, we will enhance daily life and the communities in which we work and live."

"With our new leadership, resources, and exciting partnerships, the rapidly growing e-bike market can be confident that Elby will continue to provide our premium and award-winning e-bikes to the market. Our automotive heritage and 'designed from the ground up' philosophy will continue to be our R&D mantra, including exciting new technologies in development."

Besides consumer sales, Elby is working with commercial, corporate, and government agency partners including hotels, resorts, residential urban developers, corporate campuses, and government transportation agencies.

Elby sells through an international network of retailers, online sales via elbybike.com, and sales and fulfullment by Velofix franchise partners.

More information at elbybike.com.

Stages signs 2-year deal as official supplier of power meters and cycling computers

(Boulder, CO – January 10, 2019) StagesⓇ Cycling has joined with UAE Team Emirates as technical partner, becoming their official supplier of power meters and cycling computers.

Starting in 2019, all the Colnago bikes in the team from the United Arab Emirates will be fitted with high-end products from Stages, offering the team's riders and technicians powerfully effective training systems. Aru, Gaviria, Martin and all their teammates will be supplied with Stages Gen 3 Campagnolo Super Record 12sp power meters and Stages Dash M50 and L50 GPS cycling computers as well.

"We have a long and successful history of working with the top professionals in every discipline of cycling," said Pat Warner, Stages Vice President. "The depth of talent and organization at UAE Team Emirates is truly world-class and partnering for two years allows Stages an outstanding opportunity to work in concert with the World Tour's top sprinters, climbers, and stage racers."

Joxean Matxin, general manager for UAE Team Emirates, expressed satisfaction for the signed deal. "Stages is a top-level partner that will allow us to use high quality instruments in an absolutely relevant field. In fact, it is essential to monitor the riders' performances during their efforts, and Stages will offer us indispensable precision when it comes to power meters as well as cycle computers known for their record lightness, which is a very important parameter."

Stages Gen 3 Campagnolo Super Record 12sp power meters feature all high-resolution Stages electronics with enhanced signal strength for reliable, consistent data capture and transfer. The
small and discreet meter does not detract from the elegance of Campagnolo 12s crankset and delivers 200+ hours of user-replaceable battery life while adding just 20 grams. The Stages Dash M50 and Dash L50 GPS cycling computers feature robust GPS mapping, with base maps and support for GPX, TCX, and FIT routes, and brilliant, high resolution, Stages EverBrite full-color displays. Dash deliver best-in-class customization of data fields including guided workouts and can be enabled to alert riders to training goal compliance.

More information about Stages power meters and the latest Dash computers is available from authorized StagesⓇ Cycling dealers and online at www.stagescycling.com.

Box Components, a growing and committed company in the BMX and MTB industries, announced today that Bill Roberts-Ross has been appointed Sales Manager effective January 7, 2019. Bill and his team will continue to drive the company's mission to connect man and machine, driving domestic and international customer acquisitions.

Box is in a period of global expansion and looking to grow its sales force in North America and Europe. "Bill is ideally suited to lead our domestic and international sales based on his deep industry knowledge, outstanding track record, and his commitment to customer success," said Toby Henderson, President of Box Components. "Bill's broad experience provides him with the necessary background and perspective to lead Box's commitment to bring the best support to industry dealers, distributors, third-party marketplaces, and e-retailers."

Previously at CamelBak Product managing Key Accounts and at Buff Headwear, Bill worked closely with IBD accounts, Mass Market accounts, and International Distribution to build an effective business strategy. Bill is dedicated to continuous learning and his qualifications include an MBA. He is happily married and is looking forward to starting a family in the Bay Area where he has been based for the past 9 years.

"Box has outstanding products and talent, and it is an honor to join the team," says Bill. "The company is uniquely positioned drive innovation in the industry and I look forward to working with our production team and customers to accelerate our sales growth globally."

Contact Bill Roberts-Ross at bill@boxcomponents.com

DURHAM, N.C. (BRAIN) — Specialized Bicycle has agreed to pay bankrupt Advanced Sports Enterprises $700,000 for rights to the Roubaix bicycle trademark in the U.S.

ASE, which has been licensing the trademark to Specialized since 2003, has agreed to remove the trademark from the portfolio of assets that are set to be auctioned this month. ASE also agreed to withdraw a motion it had made with the bankruptcy court to cancel the licensing contract. Canceling the license and then auctioning the trademark would have jeopardized Specialized‘s use of the trademark on one of its best selling bike lines.

A bankruptcy judge this week agreed to schedule a hearing for Jan. 22 where he will consider whether the asset purchase agreement between ASE and Specialized should be accepted. A sales hearing is already scheduled for that day regarding other assets that are being sold this month.

Under the tentative agreement, the trademark will not be subject to competing bids. The official committee of ASE's unsecured creditors supports the sale; Wells Fargo, an ASE creditor that holds the Roubaix trademark as collateral, also supports it.

While detail paperwork is still being drawn up, Specialized has agreed to assume the trademark and any related rights and obligations. That includes the assumption of an agreement that ASE's Advanced Sports Inc. (ASI) division made with Daniel Richter, the owner of Café Roubaix in Calgary, Canada. In 2013 Specialized had threatened to sue Richter for use of the Roubaix mark for his business. Specialized, ASI and Richter later announced they had agreed to settle the issue. 

ASI has had a Fuji Roubaix road bike model in its lineup since 1992. Although Specialized has registered the trademark in many countries, in the U.S. it has licensed it from ASI.

On Friday, the court also agreed to reschedule the deadline for bids for other ASE assets. The bid deadline, originally Friday, is now Monday, Jan. 14 at 5 p.m. If competing bids arise, an auction will be held Jan. 16 at 10 a.m., a day later than originally scheduled.

A sales hearing to consider asset purchase agreements remains scheduled for Jan. 22.

Stockton, CA— Williams Cycling, a direct to consumer wheel and component brand, is for sale. The company is seeking a buyer who can leverage the brand to it's fullest potential.

"We fill a very important and growing role in the cycling market", says Keith Williams, President. "Over the past 13 years, we have built a reputation of quality and service at an aggressive price point. The brand has tremendous growth potential and is a proven leader in the direct-to-consumer market. It's time to hand off the brand to an entity that has the capital and skill set to continue the growth, vision, and outstanding reputation of Williams."

Interested parties can contact Williams at info@williamscycling.com

PARK CITY, Utah (BRAIN) — POC's new Ventral Air helme will be raced for the first time by riders from EF Education First at the Tour Down Under, beginning Tuesday. It will be available to consumers at www.pocsports.com and retailers later this spring.

"With every helmet we design, POC's objective is to always use science, mixed with our commitment to innovation and Swedish heritage, to maximize a rider's safety and performance," said Jonas Sjögren, POC's CEO. "Ventral Air is the latest result of our approach; it's incredibly safe, lightweight and ventilated. It's perfect for long climbs on hot days."

Influenced by POC's Octal and Ventral helmets, Ventral Air features precise ventilation ports and internal channels that the company said will enhance ventilation at high and low speeds.

The helmet weighs 230 grams and features a fully wrapped uni-body shell construction and an EPS liner optimized for balance between weight and safety. The helmet also features POC's patent pending silicone pad system, SPIN (Shearing Pad INside).

Ventral Air was developed with input and testing from the riders of EF Education First. POC has been the helmet and eyewear sponsor of the World Tour team since 2014.

"Success in professional racing is built on performance and the Ventral Air, which is built on the evidence of POC's tried and tested Octal and Ventral, is another performance leap forward for our team's riders," said Jonathan Vaughters, EF Education First CEO. "The hot days and mountain stages of next week's Tour Down Under will be the ideal proving ground for Ventral Air."

VALLEJO, Calif. (BRAIN) — Thieves stole the contents of a rental cargo van including two cargo bikes and materials on the way to the CABDA West show this weekend.

Ed Rae, the North American agent for Urban Arrow, said the trailer was broken into in a hotel parking lot in Vallejo, California. He said it appears an attempt was made to steal the van; when that failed, all the contents were taken. They are valued at about $15,000.

One of the cargo bikes stolen is the Cargo L models, the only one of its type in North America. The other bike is a Family model, one of only a handful in the San Francisco Bay Area. They are Bosch-equipped bikes that retail for $6,000 each. Also stolen were some parts & accessories, booth backdrops, roller banners, flags and similar items.

Frame numbers:
Cargo L UAMM170930
Family UAMM170599

Both stolen bikes have white frames. 

Rae said the vehicle used in the theft was an older model white-ish Chevrolet pickup with a camper top. A police report was filed with Vallejo police. 

"These bikes are utterly distinctive and not typical stolen bikes so thieves will have a hard time moving them," Rae said. "Please be on the lookout, either in shops or online."

Rae can be reached at 503-703-7626.

Quality Bicycle Products is pleased to announce the 2019 winners of the Women’s Bike Mechanic Scholarship. Each of the 32 scholarship recipients will attend a two-week Professional Repair and Shop Operations class at United Bicycle Institute (UBI), in Ashland, Oregon thanks to support from QBP and sponsors SRAM, Park Tool, UBI, DT Swiss, Problem Solvers, SPANK, MAXXIS, DERO Bike Racks, and WTB. 

The winners were selected from nearly 300 qualified applicants because of their passion for increasing ridership among underrepresented groups and their demonstrated commitment to the projects they’re currently working on. The scholarship covers the winners’ tuition and lodging, plus a stipend to help defray the personal expenses of travel and meals.  

The time spent at UBI will help each recipient build a solid foundation of technical knowledge to strengthen their bike industry career while also helping to grow the network of talented mechanics. 

Congratulations to these 2019 scholarship recipients.

Dear Specialized Rider,

Your safety is our top priority. Whenever something happens that may compromise your safety, we take immediate action.

Based upon reports from the field, the steerer tube collar on select Roubaix, Ruby, Diverge, and Sirrus bicycles may be susceptible to stress corrosion cracking. When that happens, it may result in a sudden loss of steering control while riding.

Click here to view a list of affected models by Model Year.

We are voluntary recalling the steerer tube collars on these bicycles and are replacing them with a new, improved collar which, together with an adjustment to the torque setting, will significantly improve the collar's resistance to stress corrosion cracking. We have reported the matter to the U.S. Consumer Product Safety Commission (CPSC) and are working closely with them on a press release announcing the recall shortly.

Please stop riding your bicycle immediately and visit your local Authorized Specialized Retailer to have a new steerer tube collar installed, at no cost to you.

We wish to apologize for this inconvenience and thank you for your patience.

Thank you for riding Specialized.

Jon Goulet

Director, Global Quality and Rider Care