Advanced Sports Enterprises Inc. (ASE) announced today that they have filed for Chapter 11 bankruptcy, in order to “restructure and better position itself for future success.” ASE is the parent company to Fuji, Kestrel, SE, Breezer Bikes and Tuesday Cycles as well as retail brands Performance Bicycle and Bike Nashbar, and was formed after Advanced Sports International (ASI) purchased Performance Bicycle in 2016.
According to Bicycle Retailer
, the move is expected to lead to the closing of 40 of the current 104 Performance Bicycle stores.
In a press release, Patrick J. Cunnane, ASE’s President and CEO, stated, “While ASE is undergoing the Chapter 11 process, we will continue with business as usual; orders will be fulfilled and Performance Bicycle stores will continue operating
"Employee layoffs and store closings are inevitable, but at this time I do not have enough information to announce those plans. My goal is to continue to work through this process and keep our business intact. My vision for ASE is to become a profitable, vertically integrated, omnichannel bicycle manufacturer, wholesaler and retailer.
“We’ve taken a lot of steps to right the business over the past 27 months. We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure ASE’s long-term success. We are thankful for the continued support of our dedicated employees, valued customers, vendors and business partners as we navigate this process, and look forward to becoming a stronger company in the coming months as a buyer / investor for the business is found.”
Cunnane noted that sales of ASE's bike brands were steady, but that difficulties in increasing sales and profits on the retail side was one of the factors that led to the filing.