In a recent post,
Bicycle Retailer announced that Vista Outdoor reduced the workforce at Bell Sports, Giro and Blackburn headquarters in Scotts Valley, California, by 14 employees from a range of positions including engineering, design, testing and marketing. Layoffs included longstanding managers, which suggests that the positions will be permanently closed. Reportedly, the explanation was that Vista was downsizing the brands to better fit the current landscape.
The news comes on the heels of Vista's 170 million dollar deal to
divest itself from firearms - which, BRAIN reported, will be used to pay down debt. Presumably, some of that cash will help prop up Vista's cycling brands
In an announcement earlier this year, Vista reversed its decision to sell off Bell and Giro, saying that they thought they were undervalued at the time, maintaining that the brands were capable of returning to category leadership roles. The new plan is long-term restructure, after which the Vista team will reassess whether they will retain the brands or again offer them for sale. As quoted in the BRAIN story, Bell CEO Chris Metz says:
"We came to clear conclusion as a team and as a board that we are much better off holding this asset and continuing to improve it for a period of time. That will be a multiyear period of time. We see that much upside in the business. At this point in time we’re excited about holding it; we think it’s the best thing to do for driving shareholder value.”Scotts Valley is located just up the hill from Santa Cruz and is an equally expensive location to run a business. Bell and Giro's neighbor, Fox Racing Shox, recently moved its
new headquarters to Hall County, Georgia, and much of its nearby Watsonville operation to Reno, Nevada, saying that hiring and keeping skilled workers was made difficult by California's hyper-inflated cost of living.
With Fortune 500 corporations vying for industrial space in Scotts Valley, the writing may be on the wall for any cycling brand taking up space there. If that proves true, and Vista holds to its stated course, Bell, Giro and Blackburn's remaining staff should not get too comfortable in their chairs.
Translation, we didn't get the offers we hoped for trying to sell the asset on the used market.
Kinda like when you post something in the PB BuySell section and the best offer you get is some used PS3 games and a promise to pay up the rest when the kid gets his next allowance.
Also this is what he wanted to say.
"We came to the clear conclusion we're going to fire some people and double down on cutting every cost we can in order to make the crappy bottom line look better so we have a hope and a prayer to get a better offer next time we list this POS in the PB BuySell."
Goin out with a bang..
Time to drop the hammer on the employees..
Looks like they're losing sight(s)...
Am I conspiracy theorist, or just cynical?
Expect the costs (quality) to go down, or the price go up. Probably both. The beauty of the stock market!
Now Vista is just a long line of corporate spin-offs starting way back with Honeywell, then Alliance Tech, with a long history of munitions, aerospace and defense systems...all vying and dependent on military contracts (hilariously Alliance was only the Pentagon's 17th largest contractor). They finally spun-off their 'sporting' ammunition division - police, personal - business as Vista Outdoor.
I think there is value in choosing to support private companies like Evoc, POC, TLD and yes, ironically Trek and Specialized, that still have founders or family involved and haven't been ravaged and chopped by corporate conglomerates - i.e. Bell, Smith, Oakley, GT, etc.
The only difference between those companies, and companies like Bell, Smith Fox, Oakley etc is that the original owners of the brand decided to stick with it, and not cash in on the hard work they put in.
The 'private' companies you listed have all financed growth through banks - it's pretty much exactly the same as getting investment. The only difference is that you have to pay that money back, rather than giving up a % of your company. For some owners, they would rather cash out and not deal with the stress. I don't think that's a bad thing.
Behind almost EVERY cycling brand is a bunch of hard-working individuals that somehow stumbled into the bike industry and stayed because they want to help make/sell/market rad bike products. They aren't there for the money. They don't chose who owns their company - they don't chose what other companies that VC invests in.
Those same hard working people exist in Bell, Smith, Oakley, GT just like they do in Evoc, POC and TLD. Those people still have mortgages to pay families to feed... Just because the company they work for is owned by a VC does it mean that they shouldn't get your support? I think it's kinda unfair that you are asking people not to spend their $$$ with certain brands just because the original owners decided they wanted to sell...
I have been at a job where we were getting laid off every Friday and eventually my Friday came. Having a sense of humor about it was one of the best ways for us to handle the stress. I wish I could go back just to use the banana joke. My coworkers would have laughed.
We are a culture of offended people these days. We get offended for others that aren't offended in the first place. It's really offensive to me.
That you doubt the employees care is fine, but you seem reasonable enough to acknowledge that maybe some do, and that the final sentence in this article is a bit silly.
For your next bit, make fun of millennials. They're soft AF.
Hoping the CEO doesn't run the brands into the ground.
Sounds like the cycling/outdoor segment of their portfolio was really the one on the chopping block when people started boycotting over their involvement in firearms, but had no takers. They were forced to sell the firearms portfolio in order to stay solvent, as that cash propped up the rest of the company. CEO may not be great, but it sounds like the choices were this, or let the whole boat sink, in my opinion, he made the correct decision.
$6.1 million dollars last year.
Ho-ly
F*CK
CEO of a sporting goods company, making that kind of dough. America is severly broken.
I do agree with Fattyheadshock that an army of concerned citizens coming out of the mountains armed with AR15 copies is not going to successful confront a modern military.
Badly spelled, capitalized name calling in a post is often as sign the reasoned debate is not on the agenda though.
What is not reported on is the number of legally possessed guns used for self defense that doesn't result in a shooting. That has happened to me, there's a very good chance 3 guys would've beat the crap out of me for the crime of being in their neighborhood while walking my dog. They didn't, because the skinny unassuming guy happened to be a former cop carrying a pistol.
Owning firearms is a constitutionally protected right. Try to whittle that away as much as possible, and you can replace it with pressure cooker bombs or heavy trucks driven in pedestrian areas.
Not trying to diminish the atrocity of the crime committed, just trying to educate people on correct firearm terminology.
I guess it'll take a lot more of us losing our jobs over this, before we finally pull our collective heads out of our asses and do something about it
Stupid companies try to cut cost yet instead destroying their one key asset!
Even fewer have on-site testing abilities. An even fewer have testing abilities to the scale of Bell/Giro.
Beyond that... these companies are working on stuff 2-3 years before it comes out. That means the engineers you're supporting by buying that DH are could have been gone for a year or two.... or the ones there already produced products for the next few year. Or better yet... maybe they didn't lay off any engineers.
See what I'm getting at here? You're choosing to not support a brand when you really have zero idea wtf is really going on.
All the assumption in these comments is almost comical at this point.
How brave...
The 2nd amendment is on its last breath! Only 393,000,000 guns to collect and Utopia will be achieved.
Most of the comments were pro/anti gun bickering. Although it seems as though more of the pro-2A comments have been removed or just whole threads deleted, which was probably easier. Some of the top comments appeared reasonable support for guns, which quickly became a sh#t show.
Any time bikes stuff come under the control of an conglomerate investors--who are greedy and just care about getting richer--it's bad news and the products are always second rate. I don't purchase anything from these kinds of companies.
Watsonville location is still full... as is the scotts valley location. Georgia is corporate headquarters. They didnt move scotts valley to georgia.
The statement in this article is false and misleading... period. But go ahead and keep dropping negatives and the guy that's right. Lol.