What's going on in the cycling industry this month? Industry Digest is a peek behind the curtain and showcases articles from our sister site, Bicycle Retailer and Industry News. In each installment, you might find patents, mergers, financial reports and industry gossip.Curious about the inner workings of the bike industry? Bicycle Retailer and Industry News publishes two weekly newsletters, one on the industry in general and one devoted to e-bike news. You can subscribe free at https://www.bicycleretailer.com/newsletter
Wahoo eliminates all debt with recapitalizationBy: Bicycle Retailer and Industry News
Wahoo Fitness says it has eliminated all its debt with a recapatilization from new and current investors.
The company said its founder, Chip Hawkins, led the recapitalization. The terms are confidential but the company said it eliminated debt and provides "significant cash liquidity designed to extend the company's prominence in advancing innovation in the global smart fitness and training category."
Hawkins said, "The successful recapitalization of the business provides the flexibility we were seeking as a management team to allow for investment in innovation and growth from the company's substantial base and category leadership position, by diversifying the breadth of its offerings to better support athletes and fitness enthusiasts. Wahoo's management team is energized by a renewed focus on delighting its customers and continuing Wahoo's mission of building a better athlete in all of us."
Giant and Stages end investment negotiationsBy: Steve Frothingham // Bicycle Retailer and Industry News
Giant Group has ended plans to invest about $20 million to take about a third share in Stages Cycling because the companies were unable to reach definitive agreements on the deal, according to documents Giant has filed with the Taipei stock exchange.
Giant had filed a notice in January saying its board had agreed to invest a total of about $20 million in Stages, which has manufactured stationary bikes for Stages in the past. The January statement said the board approved the purchase of 32.5% of Stages Cycling Inc. common stock for $6.5 million and Stages Cycling's convertible corporate bonds for $13.5 million. Giant made the investment through its subsidiary Gaiwin US I Investment Inc.
CPSC recalling 2 million Peloton bikes because of faulty seatpostBy: Bicycle Retailer and Industry News
The Consumer Product Safety Commission is recalling about 2.2 million Peloton bikes because of a fall-and-injury hazard because the seatpost assembly can break.
Consumers of the Peloton Model PL01 should stop using it and contact Peloton for a free repair. The company is offering a free seatpost that can be installed.
Peloton has received 35 reports of the post breaking and detaching from the bike. Thirteen injuries have been reported, including a fractured wrist, lacerations, and bruises due to falling from the bike.
Wahoo reaches closure in one patent suit; Zwift suit continuesBy: Steve Frothingham // Bicycle Retailer and Industry News
Wahoo Fitness has reached a settlement with a Nevada inventor who sued the company in 2015 alleging that its Kickr trainer infringed on his patent. The inventor’s suit against Foundation Fitness (the owner of Stages Cycling) also is close to a settlement.
Meanwhile, Wahoo’s patent infringement suit against Zwift continues, with Wahoo this week filing an amended, redacted complaint. Wahoo also is proposing that the court redact sections of an order that references trade information and information about the company's financial condition.
Sea Otter attendance up from 2022By: Bicycle Retailer and Industry News
Organizers of the Life Time Sea Otter Classic say total attendance at this year's show was 76,500, up from 71,000 last year and with a significant increase in the number of corporate brands and exhibitors at the event's expo.
For the first time, this year's event included an "Industry Day," Wednesday, April 20, which offered dealers and associated companies some incentives to attend, including free festival access for four days for retailers.
About 400 people took advantage of that offer and exhibiting companies remarked on the better-than-usual foot traffic at the expo on Wednesday.
The event reported that about 5,700 athletes registered, down from about 6,400 last year. Registered media was about even with last year at 335 while the number of brands represented at the expo was 1,050, up from 750 last year.
Industry veteran Spinhirne-Martin buys Capo Cycling ApparelBy: Bicycle Retailer and Industry News
Capo Cycling Apparel has been acquired by industry veteran Zach Spinhirne-Martin from its founders, Robert Carbone and Gary Vasconi.
Capo, founded in 2004, is a U.S.-based brand that sells Italian-made apparel.
“I am very excited to take over this incredible brand and work to grow it into the future. It has always been one of my favorite brands, with performance-driven technical designs and amazing handmade quality,” said Spinhirne-Martin. “The Capo brand is known for high quality and Italian passion in its designs. I can’t wait to design and develop products I as a rider want to use for years to come.”
Rad Power working with Redwood Materials for e-bike battery recyclingBy: Bicycle Retailer and Industry News
Rad Power Bikes will work with Redwood Materials to recycle the brand's end-of-life lithium-ion batteries.
Consumers can bring their unpackaged battery to any U.S. Rad Power retail location. Rad Power will prepare the batteries for shipment to Redwood Materials for recycling, refining, and repurposing. Recycling programs like Redwood Materials facilitates the reuse of more than 95% of a battery's critical metals. Recycling also reduces the need to mine virgin materials.
In addition, select Rad Power retail locations will be equipped with collection bins for small-format lithium-ion batteries.
NY Sens. Schumer and Gillibrand advocate for lithium-ion battery federal legislationBy: Bicycle Retailer and Industry News
N.Y. Sens. Chuck Schumer and Kirsten Gillibrand said during a news conference Sunday that they support federal legislation to regulate lithium-ion battery safety standards in the wake of increasing fires caused by the devices.
One such bill was introduced last month by U.S. Rep. Ritchie Torres (D-N.Y.) — The Setting Consumer Standards for Lithium-Ion Batteries Act — would require the Consumer Product Safety Commission to establish a consumer product safety standard for rechargeable lithium-ion batteries used in personal mobility devices, such as e-bikes and e-scooters, to protect against the risk of fires.
Saris wants to be humble as it rebuilds with new ownersBy: Bicycle Retailer and Industry News
Saris, which is under new ownership since it was purchased from a Wisconsin state receivership program last year, was showing off several new rack products and its stationary trainers at the Sea Otter Classic this week.
Stefan Guelpen, the brand’s new B2B sales director, said 2023 will be a year of “consolidation” as the new owners and the industry get to know one another.
“We need to make sure the general public knows what we are doing .. we are cleaning up some issues internally, reestablishing confidence in us as a supplier,” he told BRAIN at the Monterey event on Friday.
Revel Bikes making headlines for growth, expansion, innovationBy: Bicycle Retailer and Industry News
Adam Miller had just returned from the Sedona Mountain Bike Festival in early March when the Revel Bikes owner and CEO reflected on the visit.
"It was really enlightening," Miller said. "There were a lot of industry people there this year. It was cool how positive people were: 'Wow, Revel is making these great moves, and it's great to see you growing, even though things are so challenging.'"
Among difficult times and negative headlines in the industry — layoffs, bankruptcies and dismal earnings reports among them — Revel Bikes has been an exception.
Decathlon offering its road and mountain bike lines to US dealersBy: Bicycle Retailer and Industry News
Decathlon, said to be the world's largest sporting goods retailer and a major global supplier of bicycles, is now offering its bike lines to U.S. IBDs for the first time, showing them here in a large display at the Sea Otter Classic.
Decathlon made a move to establish its large-format sporting goods stores in the U.S. in 2018. Last year, it closed its two U.S. stores and began sales of its products through its own e-commerce site and third-party sites including Walmart and Target.
Now its bike products are being offered wholesale to speciality retailers in the U.S., as well. "We're here to show our upper-tier bikes to other retailers," said Amy Vanderlin, Decathlon's B2B account manager. She said it was Decathlon's first appearance at Sea Otter. Vanderlin said Decathlon currently has one inside sales rep focused on bike sales to specialty dealers.
Boyd Cycling opens aluminum rim manufacturing facility in South CarolinaBy: Bicycle Retailer and Industry News
Boyd Cycling will begin on-shoring its aluminum rims in South Carolina, with the wheel brand saying this increased capacity and automation will enable it to become the largest alloy rim manufacturing facility in the U.S.
Olive Manufacturing Group, located about 15 minutes away from Boyd's headquarters, will produce all alloy rims — including in-house anodization and oven curing for decals — along with potentially helping other companies manufacture domestically as well.
"This will benefit the entire cycling industry by offering quicker turnaround without the supply chain issues of shipping products around the world," said Boyd Cycling and Olive Manufacturing Group co-founder Nicole Johnson.
This is not the flex you think it is.
If you think 35 seatposts failing is some big number out of millions of bikes, let me tell you about car recalls. Lmfao
Can we get some realtime heart rate or power data on this? I want to see how energized they truly are.
Who's saying this? It either is or it isn't.
Nothing rad about e'bikes
Ok, peloton, they probably don't.. but Wahoo has a long history in the industry before investment capitol was ever involved.