Industry Digest: Giant Ends Stages Investment Plan, Wahoo Lawsuits, Peloton Seatpost Recall & More

May 22, 2023 at 4:21
by Ed Spratt  
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 recapitalization
By: 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."
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(Read more.)




Giant and Stages end investment negotiations
By: 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.
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CPSC recalling 2 million Peloton bikes because of faulty seatpost
By: 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.
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Wahoo reaches closure in one patent suit; Zwift suit continues
By: 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.
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Sea Otter attendance up from 2022
By: 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.
2022 Sea Otter Classic Expo

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Industry veteran Spinhirne-Martin buys Capo Cycling Apparel
By: 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.”

(Read more.)




Rad Power working with Redwood Materials for e-bike battery recycling
By: 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.

(Read more.)




NY Sens. Schumer and Gillibrand advocate for lithium-ion battery federal legislation
By: 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.

(Read more.)




Saris wants to be humble as it rebuilds with new owners
By: 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.
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Revel Bikes making headlines for growth, expansion, innovation
By: 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.
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Decathlon offering its road and mountain bike lines to US dealers
By: 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.
Rodckrider XCO Team

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Boyd Cycling opens aluminum rim manufacturing facility in South Carolina
By: 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.

(Read more.)





Author Info:
edspratt avatar

Member since Mar 16, 2017
2,969 articles

69 Comments
  • 90 13
 So the peleton trainer, which costs more than an actual bike, but doesnt actually go anywhere, has an epidemic of broken seatposts? like the thing doesnt move, its like furniture, it doesnt matter how heavy it is, and it breaks? just lol, the things some people spend their money on
  • 43 52
flag Processtuna (May 22, 2023 at 5:38) (Below Threshold)
 It has an adjustable seat post just like any exercise bike you’d find at any old gym. Also not sure what bikes you’re riding for $1400 these days, but it’s a relatively small investment for a dedicated indoor trainer that works for the whole family.
  • 42 6
 @Processtuna: There's plenty of solid bikes for normal people for like 6 or 700 bucks. The vast majority of people on the planet are going to be perfectly happy with a trek marlin or something similar.
  • 11 2
 Mountain biking is too scary
  • 34 0
 @WestwardHo: No way - it's not possible to have fun or get exercise unless you outspend the guy down the street by at least 20%.
  • 1 1
 @WestwardHo: only true if you count the vast majority of people on the planet dont mtn bike.
  • 9 0
 @Processtuna: So I can spend $200 and get a descent suspension seat post and Peloton can't make two square tubes with a bunch of holes in them work?
  • 5 8
 @Processtuna: We found the Peloton employee....shouldnt you be at work with the $350k salary?
  • 5 0
 @bertimusmaximus: right, that's basically the point I'm making. We're talking about alternatives to Peloton not shredding the gnar. Even then, to a lot of people mountain biking is flat trails and gravel roads. A Trek Marlin is actually perfect for that. I'd probably prefer a Marlin to my stumpy evo on gravel and green trails just for the fun factor.
  • 10 1
 Where are the videos of people falling off their peleton bikes as the seatpost fails? I would consider paying for such hilarity.
  • 9 0
 @commental: friday peloton fails...think you're on to something.
  • 5 0
 eh......35 out of 2.2 million on a 4+ year old product doesn't give me much concern...media making a stink about nothing. I assume it has to do with a weld failure at the top of the post.
  • 1 0
 @commental: in a Pinkbike Friday Fails!!!!
  • 4 0
 @Processtuna: so for 1400 dollars, they arnt able to make an adjustable seatpost, like on any old exercise bike, that doesnt break?

This is not the flex you think it is.
  • 5 1
 @Torbo24: bunch of butt hurt people in the comments think I’m flexing lmao. My gf bought the bike and I use it when trails are wet, sue me. It’s a decent product for $1200 and we have gotten more than our fair share of use at the price.

If you think 35 seatposts failing is some big number out of millions of bikes, let me tell you about car recalls. Lmfao
  • 13 0
 @Processtuna: To be fair it's those 35 people with the broken seatposts who are more likely to be butt hurt. ;-)
  • 2 1
 @WestwardHo: as a reasonably experienced rider who owns a very nice, modern trail bike AND a Trek Marlin 8…let me just say that the Marlin 8 is actually pretty well done. It’s my go to bike because I don’t feel like hemorrhaging resale value every time I ride. Plus I feel like the 12 year old version of myself when I ride it; and there’s something to be said about riding away from people on expensive bikes, going both up and downhill, on a f*cking marlin.
  • 1 1
 You mean, silly carbon fibre fat tire bicycles for adults to play on in the woods isnt a silly thing to spend money on? Dont judge what others spend their own money on, we all spend it on silly things sometimes.
  • 3 0
 People didn’t read the product warning that the saddle will only support 10 dress shirts.
  • 2 0
 If you are not hurting, you are not riding.
  • 44 8
 That's just embarrassing to break your wrist falling off a bike with a top speed of 0mph.
  • 20 0
 this may sound crazy but..... I've nearly crashed a couple times on my Turbo :'D those sprints go HARD
  • 12 1
 People can get hurt when their office chair breaks if not properly manufactured, too. I'm sure you'll make fun of them next.
  • 7 0
 I've had some epic wrecks on a roller trainer
  • 3 1
 obviously you've never ridden rollers. Let alone done high cadence drills or even worse try to do threshold work on them. Heck I rode my Powercrank bike on them and had some serious near misses.
  • 3 3
 @noapathy: As 'Faith No More' sung in their song 'Ricochet'.... "It's always funny until someone gets hurt, and then it's just hilarious".... So yes, I probably will!
  • 2 1
 @heatproofgenie: I have indeed ridden rollers and turbo trainers. The thing is, they give the sensation of being flat out on a bike, but really all you need to do when it goes wrong is put a foot down, which is probably how you escaped your 'serious near misses'!
  • 1 0
 @heatproofgenie: that's the problem though... roller trains have a very high max speed followed by almost instant deceleration to zero.
  • 2 4
 @bigtim: Quoting a song doesn't make you less of a d-bag when you do it.
  • 14 1
 Cold reminder that while cycling is a passion for most of us, it is also big business like any other. I like to forget about the side of it that doesn't directly affect me as a rider- but it is important to the industry I need for my passion.
  • 10 0
 Kona is closing its retail space in Bellingham per its parent company’s decision in June of this month. Be on the lookout for Kona Bikes in Dicks Sporting Goods stores by 2025…
  • 8 0
 Ignoring the seatpost issue for a moment . . . Peloton has sold 2.2M units?? Wow.
  • 4 0
 For a company supposedly worth billions that ain't gonna cut it.
  • 5 0
 @plyawn: monthly membership is where their money is made
  • 2 0
 @SATN-XC: right, with a $44/month subscription, those 2.2milion bikes turn into $96.8 million revenue a month
  • 4 0
 Funny because all I got, out of this Article is that we are in a recession and the bike industry needs to be reminded they are a commodity not a need. An industry that has near 50%-60% increased YOY growths now can not hack it for what is just the start of a storm
  • 4 0
 "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."
Can we get some realtime heart rate or power data on this? I want to see how energized they truly are.
  • 2 0
 What can we learn from this indoor riding news today, seems like more trouble in those spaces than riding outside brands (Trek, Giant, Specialized, Shimano, SRAM)....are these indoor brands larger than riding outside brands? or is this a niche thing. Pinkbike-ever done a poll on "do you own a smart trainer?" i'd be curious how many pinkers have one. I used to have a spin bike in my garage, thats as close as I came.
  • 3 0
 I think you'd be surprised by the number of riders using Swift or Peloton. Great rain day or recovery option. I use Peloton but the majority of guys I ride with have Swift.
  • 2 0
 I didn’t believe I could fall victim to any scammer but at the end of the day life happens and I’m here feeling stupid and played, I won’t be here making this review if “VALOR HACK” didn’t come through for me . A scammer posing as Texas country singer “Casey Donahew” made away with about $450,000 , and would have gotten away with it it if not for the reviews about “VALOR HACK” that saved me ,I’m here hoping it will save you too . Contact “VALOR HACK”
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  • 2 0
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  • 3 1
 Booooooo! Saris. BOOOOOOOOOOOOOOO! If its new management and a new team why not rename it. Its like having a company and naming it Enron, or having a child and naming them Adolf.
  • 1 0
 So, it’s sort of a silly name, considering it’s origins, but it is a recognizable brand with a history. Also they’re city mobility products are pretty nice. Our shop uses and sells a fair number of their stationary racks. I have a Super Clamp two bike and have been extremely happy over more than five years of use. Now that my kids are getting older, I consider one of their four bike setups.
  • 3 0
 @BikesBoatsNJeeps: it has nothing to do with how it sounds. It has to do with them taking a huge ppp loan, and filing for forgiveness then taking the "payroll protection" and using it as startup capitol overseas and shut down their us production. Slimy ethics, not a silly name.
  • 2 0
 Adolf is a nice name
  • 2 0
 @wburnes: There's a freerider called Adolf Silva, he's ridden Rampage, Darkfest etc
  • 1 0
 @RonSauce: Saris still manufactures most of their core products in their original location in Madison WI. Bones, Freedom, SuperClamp and H3 trainer, just to name a few. In October 2022 C+A Global acquired Saris out of chapter 128 receivership. The new owner plans to continue US manufacturing and development in the car rack and trainer categories.
  • 3 0
 "Decathlon, said to be the world's largest sporting goods retailer and a major global supplier of bicycles"

Who's saying this? It either is or it isn't.
  • 2 0
 It probably depends on how sporting goods are defined too. Maybe there are bigger chains that sell some sporting goods, but groceries too. And what you always considered a toy as a kid is suddenly being called sporting goods when marketed at adults who take themselves too seriously. I don't care much whether they're the largest. They're pretty big and that's what relevant for this article.
  • 2 1
 What percentage of bikes is assembled in the us? Probably less than 1. Don’t know how you will make rims in South Carolina without shipping them all over the world.
  • 5 0
 A very low percentage, yes, but we can assume that warranty fulfilment and aftermarket sales made that on-shoring decision viable for Boyd. Shipping to Europe from Asia vs. shipping to Europe from the US also isn't going to break the company, clearly. It's a good thing, man!
  • 1 0
 @NickMosca: don’t think it’s a bad thing by any means. I’m all for domestic manufacturing for a variety of reasons. Just think they are massively overblowing any advantage towards the environment by doing so.
  • 2 0
 If Boyd can compete with Fratelli--and their alloy is produced in N.A--rims could be delivered to I9 by horse-drawn cart. That's not nothing. Their all-mountain rims are all carbon, tho
  • 2 0
 i like revel because no dumb headset routing/knockblock
  • 1 0
 knockblock works fine now and you dont even have to run it anymore.
  • 1 0
 @mm732: good they changed that
  • 2 0
 i miss the dogs from good month bad month
  • 1 0
 No chip, no debt-free fitness tracker
  • 16 17
 Rad power?............?
Nothing rad about e'bikes
  • 8 0
 Yeah you tell ‘em!
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