Industry Digest: Rapha CEO Steps Down, Trek Cargo Lost at Sea & More
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.
Classified Cycling has raised 22 million euros ($22.9 million) from an investment led by London-based Active Partners. Active Partners is a past investor in Rapha and retailer Evans Cycles.
(Read more.)
Nukeproof mountain bikes, components and accessories are available directly in the U.S. market again via a dedicated U.S. website and warehouse and a growing list of brick-and-mortar dealers.
(Read more.)
Sea Otter Classic exhibitor space is 90% sold out with nearly 1,000 brands set to display at the 33rd annual event.
(Read more.)
A defendant in the investigation into a series of shop burglaries accepted a plea agreement, according to the Colorado Attorney General's Office.
The Boulder County deputy district attorney handled Tuesday's hearing in which Jason Quijada, 23, agreed to a three-year deferred sentence on the felony motor vehicle theft count and three years' probation for misdemeanor criminal mischief count. The Colorado Attorney General's Office partnered with the Boulder District Attorney on the case.
Considering Quijad's absence of adult criminal history, prosecutors said the sentence was in line with other lower level organization members, the attorney general's office said.
(Read more.)
Rapha's CEO William Kim will step down, with Francois Convercey and Daniel Blumire taking over as joint managing directors, the company announced.
Kim said personal reasons were behind his decision, and he would relocate to Korea to be with his family.
(Read more.)
Kitsbow Cycling Apparel has emphasized community since relocating three years ago from California to the tiny textile town east of here in Old Fort. From helping with a mural project celebrating efforts to desegregate schools in the South to creating living wage jobs, Kitsbow quickly became a neighborhood business leader.
(Read more.)
New York fire officials say they agree with five bills that the City Council is considering to address lithium-ion battery fires. The Council did not vote on the bills at a meeting Monday. A new citizens group calling for solutions to the charging fires held a news conference before the meeting.
(Read more.)
Cannondale announced a new global unified organizational structure that will eliminate regional general managers and, the company said, leverage Pon.Bike to enhance operations and growth.
(Read more.)
COVID-19, massive consumer demand, and the war in Ukraine have upset the industry's supply chain in recent years. Rough seas also played a part.
(Read more.)
Bell Sports has settled a product liability suit filed by an Indiana woman who said her Bell Universal pedal broke off while she was riding, causing a crash and injuries. The suit said the woman suffered damages totaling nearly $5 million.
(Read more.)
Vittoria Industries announced Tuesday it will move its North American headquarters to Bentonville, Arkansas, in December. The new office space will be inside the Ledger, a new six-story downtown building with bike-friendly amenities. Specialized is opening an experience center in the same building.
(Read more.)
Drivetrain maker Classified Cycling raises $23 million
By: Bicycle Retailer and Industry NewsClassified Cycling has raised 22 million euros ($22.9 million) from an investment led by London-based Active Partners. Active Partners is a past investor in Rapha and retailer Evans Cycles.
Classified makes performance two-speed internal hubs designed to be used with standard single-chainring drivetrains with multi-speed cassettes. The hubs are shifted wirelessly. Other investors in the company include retired racers Tom Boonen, Anna Van der Breggen, Andre Greipel and Marcel Kittel.
Existing investor Bridford Investments Limited also participated in the new round.
Existing investor Bridford Investments Limited also participated in the new round.
(Read more.)
Nukeproof comes (back) to the US with dealer/online program
By: Bicycle Retailer and Industry NewsNukeproof mountain bikes, components and accessories are available directly in the U.S. market again via a dedicated U.S. website and warehouse and a growing list of brick-and-mortar dealers.
The brand was launched in Michigan in the 1990s and was later purchased by Wiggle, the U.K. e-commerce retailer. After Wiggle and ChainReactionCycles were purchased by Signa Sports United, the company announced plans to return to the U.S. market with a hybrid distribution plan.
The brand now has a warehouse in Utah and its online dealer locator shows about a dozen U.S. stores.
“We’re super stoked to be able to serve U.S. customers locally,” Inga Kaufmann, Nukeproof’s director of marketing operations and U.S. brand manager, said in a press release.
The brand now has a warehouse in Utah and its online dealer locator shows about a dozen U.S. stores.
“We’re super stoked to be able to serve U.S. customers locally,” Inga Kaufmann, Nukeproof’s director of marketing operations and U.S. brand manager, said in a press release.
(Read more.)
Sea Otter exhibitor space 90% sold out
By: Bicycle Retailer and Industry NewsSea Otter Classic exhibitor space is 90% sold out with nearly 1,000 brands set to display at the 33rd annual event.
The four-day expo, presented by Life Time, is on track to exceed all sales records, according to event organizers. Several European, Australian, Chinese, and South African companies will exhibit. Nearly 40 e-bike companies also will be there. More than 1,000 demo bikes are expected to be available, according to organizers.
"Key venue changes, coupled with market shifts and pent-up demand have fueled substantial expo growth this year," said Sarah Timleck, expo sales director. "Facility improvements by Monterey County allowed us to significantly increase our expo footprint."
Timleck said brands are well aware Sea Otter draws consumers not only for cycling but outdoor recreation, too.
"Key venue changes, coupled with market shifts and pent-up demand have fueled substantial expo growth this year," said Sarah Timleck, expo sales director. "Facility improvements by Monterey County allowed us to significantly increase our expo footprint."
Timleck said brands are well aware Sea Otter draws consumers not only for cycling but outdoor recreation, too.
(Read more.)
Operation Vicious Cycle defendant accepts plea agreement
By: Bicycle Retailer and Industry NewsA defendant in the investigation into a series of shop burglaries accepted a plea agreement, according to the Colorado Attorney General's Office.
The Boulder County deputy district attorney handled Tuesday's hearing in which Jason Quijada, 23, agreed to a three-year deferred sentence on the felony motor vehicle theft count and three years' probation for misdemeanor criminal mischief count. The Colorado Attorney General's Office partnered with the Boulder District Attorney on the case.
Considering Quijad's absence of adult criminal history, prosecutors said the sentence was in line with other lower level organization members, the attorney general's office said.
(Read more.)
Rapha CEO steps down after less than one year at post
By: Andrew Hood // VeloNewsRapha's CEO William Kim will step down, with Francois Convercey and Daniel Blumire taking over as joint managing directors, the company announced.
Kim said personal reasons were behind his decision, and he would relocate to Korea to be with his family.
“As you can imagine, this has been a very difficult decision for me to make,” Kim said in a note to Rapha staff. “Over the last year, I’ve grown to love the Rapha brand. Rapha is an amazing business, made of great people and a unique culture, a tight-knit community. You are each contributing to building a very special brand here at Rapha. It has been a privilege to experience how magical cycling is and I know you will continue to thrive and lead the industry.”
(Read more.)
Kitsbow joins with Wefunder to begin community round of financing
By: Dean Yobbi // Bicycle Retailer and Industry NewsKitsbow Cycling Apparel has emphasized community since relocating three years ago from California to the tiny textile town east of here in Old Fort. From helping with a mural project celebrating efforts to desegregate schools in the South to creating living wage jobs, Kitsbow quickly became a neighborhood business leader.
Now it’s further weaving itself into the community by announcing in September it’s gauging interest in a regulation crowdfunding round of financing through Wefunder, an online platform that connects start-ups and early-stage companies to investors.
“One of the benefits for a company like Kitsbow, as well as enabling them to raise from their own customers and community, we can put them in front of Wefunder’s investor base, and they’ve got some investments from our investment base as well,” said Jonny Price, vice president of fundraising for Wefunder. “Typically, a company might pull in two-thirds of the capital from people they bring to the round and one-third from the existing Wefunder investor base.”
“One of the benefits for a company like Kitsbow, as well as enabling them to raise from their own customers and community, we can put them in front of Wefunder’s investor base, and they’ve got some investments from our investment base as well,” said Jonny Price, vice president of fundraising for Wefunder. “Typically, a company might pull in two-thirds of the capital from people they bring to the round and one-third from the existing Wefunder investor base.”
(Read more.)
FDNY agrees with NYC Council's lithium-ion bills
By: Bicycle Retailer and Industry NewsNew York fire officials say they agree with five bills that the City Council is considering to address lithium-ion battery fires. The Council did not vote on the bills at a meeting Monday. A new citizens group calling for solutions to the charging fires held a news conference before the meeting.
One of the bills proposed by Councilwoman Gale A. Brewer would require the FDNY to develop an informational campaign to educate the public on fire risks posed by mobility devices powered by lithium-ion batteries. Thomas Currao, FDNY's acting chief of fire prevention, said his department is already doing that and would continue.
Another bill proposed by Brewer would prohibit the sale and assembly of second-hand lithium-ion batteries that have been assembled or reconditioned using cells removed from used batteries. Violators would be subject to a civil penalty, ranging from $200 for a first violation to $1,000 for each subsequent violation within two years. It would also prohibit the assembly of such batteries.
Another bill proposed by Brewer would prohibit the sale and assembly of second-hand lithium-ion batteries that have been assembled or reconditioned using cells removed from used batteries. Violators would be subject to a civil penalty, ranging from $200 for a first violation to $1,000 for each subsequent violation within two years. It would also prohibit the assembly of such batteries.
(Read more.)
Cannondale announces new organizational structure
By: Bicycle Retailer and Industry NewsCannondale announced a new global unified organizational structure that will eliminate regional general managers and, the company said, leverage Pon.Bike to enhance operations and growth.
Marco Kind, Cannondale managing director, made the announcement Friday in a news release.
Eugene Fierkens, Cannondale Europe GM, will leave the brand but stay on to help with the transition. Cannondale sales teams will be led by Nick Hage and Frank van Dulmen.
Eugene Fierkens, Cannondale Europe GM, will leave the brand but stay on to help with the transition. Cannondale sales teams will be led by Nick Hage and Frank van Dulmen.
(Read more.)
Trek Bicycle and Bell Sports sue over cargo lost or damaged at sea
By: Steve Frothingham // Bicycle Retailer and Industry NewsCOVID-19, massive consumer demand, and the war in Ukraine have upset the industry's supply chain in recent years. Rough seas also played a part.
Bell Sports and Trek Bicycle are among the firms suing shipping companies over containers lost or damaged due to storms in the North Pacific in early 2021.
The Maersk Essen 051, a 366-meter ship, lost more than 700 containers when it encountered heavy seas off Mexico on Jan. 16, 2021. The vessel was en route from Xiamen, China, to Los Angeles. Trek is among more than 30 companies suing Maersk, the ship's operator, and other related parties for lost or damaged cargo on the Essen.
The Maersk Essen 051, a 366-meter ship, lost more than 700 containers when it encountered heavy seas off Mexico on Jan. 16, 2021. The vessel was en route from Xiamen, China, to Los Angeles. Trek is among more than 30 companies suing Maersk, the ship's operator, and other related parties for lost or damaged cargo on the Essen.
(Read more.)
Bell Sports settles product liability lawsuit involving 'universal' pedal
By: Steve Frothingham // Bicycle Retailer and Industry NewsBell Sports has settled a product liability suit filed by an Indiana woman who said her Bell Universal pedal broke off while she was riding, causing a crash and injuries. The suit said the woman suffered damages totaling nearly $5 million.
Bell's Universal pedal fits both ½-inch and 9/16-inch cranks thanks to included adapters that thread into crank arms; the pedals' non-standard axles then thread onto the adapters.
A jury trial had been scheduled to begin Dec. 5 in the U.S. District Court for the Southern District of Indiana in Indianapolis. But on Tuesday both sides told the court they had agreed to a settlement. The court gave them 30 days to file a joint motion to dismiss the case.
A spokesman for Bell, which is owned by Vista Outdoor, said the company would have no comment on the settlement. Terms were not released.
A jury trial had been scheduled to begin Dec. 5 in the U.S. District Court for the Southern District of Indiana in Indianapolis. But on Tuesday both sides told the court they had agreed to a settlement. The court gave them 30 days to file a joint motion to dismiss the case.
A spokesman for Bell, which is owned by Vista Outdoor, said the company would have no comment on the settlement. Terms were not released.
(Read more.)
Vittoria moving North American headquarters to Bentonville, Arkansas
By: Bicycle Retailer and Industry NewsVittoria Industries announced Tuesday it will move its North American headquarters to Bentonville, Arkansas, in December. The new office space will be inside the Ledger, a new six-story downtown building with bike-friendly amenities. Specialized is opening an experience center in the same building.
Karim Pine, Vittoria North America managing director, said the sales and marketing team will make the transition while the brand's warehouse will remain in Oklahoma City. Vittoria also will add six employees.
"Bentonville is becoming the epicenter of cycling in the United States, and we look forward to being part of it," Pine said. "This marks an exciting new chapter for Vittoria and showcases the investment in the U.S. market by the Vittoria Group."
"Bentonville is becoming the epicenter of cycling in the United States, and we look forward to being part of it," Pine said. "This marks an exciting new chapter for Vittoria and showcases the investment in the U.S. market by the Vittoria Group."
(Read more.)
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214 Comments
Can't look at just the trails though. The entire city is built around cycling. Lots of bike lanes and commuter paths, shops, restaurants and lodging all catering to riders. The local and state governments are friendly towards cycling (and outdoor recreation in general).
Those governments are also business friendly. There are lots of professionals here due to Wally World. Office and warehouse space is cheap compared to most places. The cost of living is decent for employees. There is basically ZERO crime. It's a solid place to start a business, not just a bike business.
I moved my boys here recently and when they're a little older, I'll have no problem letting them be feral kids, it's that safe and people look out for one another.
They need to rebrand that stupid mtb capital stuff into "Best FAMILY mtb vacation spot" or something.
Truer words have never been spoken. You should run for president, get this place back on track.
...everyone proceeds to flood PBer's city...
PBer: nooo, not like that!
You can objectively look at the riding scene in America and conclude that places like Moab and Bellingham deserve the title more than a southern state with limited elevation that has had money poured into by oligarchs.
My point was places like Moab and Sedona are already at max capacity. They don't need any more marketing.
If we're going by visits, Whistler has to be the capitol of mountain biking?
Hell, Snowshoe runs a world cup on barely 1000'.
Jump line than anything in Canada So yeah your info is about as bad as they come
Here
Bellingham beats Bentonville, for your little consolation prize
At least Lefthand ain't far.
just moved to the general area.....it shows as OHV so I would never think to go ride my MTB there.
thank you.
maybe will see you out there soon....
Maybe those bikes will appear on the second hand market like German cars in Poland after a flood
news.bbc.co.uk/2/hi/uk_news/england/devon/7063295.stm
it's the equivalent of fretting over a hang nail when you have 5 open gunshot wounds and an alligator clamped onto your leg. lol
I follow ocean racing and it's always tragic hearing of some racer hit a container and sink, or nowadays clipping a foil and that screwing up their race (think Alex Thompson in the Vendee Globe).
giving judges(humans) carte blanche to dictact punishment is a horrendously shortsighted system
He rides a bicycle, a Session is thee?
Then hop on your rig and throw a big whip!
I've never been to Arkansas do maybe I'm just ignorant, but it doesn't really scream cycling to me when I think about it?!
It's worth a visit, definitely.
I love it because I take new people down there and they aren't gassed on a 2,000 foot climb to get a great descent, or I can take my kids with me. We can all ride blues, but then I can quickly go do something a little harder and be right back. The town and support of MTB is incredible.
You won't find colorado or Moab, but it doesn't intend to be those places. It does offer great access to really, ridiculously fun trails though. We live 4 hours away, so it's relatively easy for us to get there. But, I would say if I had a group of guys that are new to the sport, Bentonville is the #1 place I'd take them...then go to Colorado and Moab once they're stoked.
Unless you’re a big fan of machine-built flow trails and 200 vertical.
edit:// There's so many different tastes in trail that I don't think that a great way to quantify a cycling town. Yes, obviously one needs fun trails, but infrastructure plays a huge role as well.
Granted that was what most would consider the early days of that stuff before things like "safety" and "not being prone to explosion" were cared about.
People- Hard pass
CEO- peasants
IMO LAL Bikes Supre drivetrain is the first major technological improvement. At least in MTB territory.
Lmao. I wonder whats behind the screens for this move
www.instagram.com/p/ChKncA_rTBS/?igshid=ZmVmZTY5ZGE
Reminds me of an incident in CT, USA where a rider stayed after closing in the West Hartford Reservoir, didn't see a gate spanning the road, clotheslined herself and sued and won $2.9M. www.singletracks.com/mtb-trails/mountain-biker-wins-29-million-lawsuit-against-landowner
Large difference for medical bills/etc if bad product is released; zero chance the 12 year old that wrenched the huffy to 85% for an online retailer is covering a broken back or frame.
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