Serotta lays off 40% of workforce, planning shutdown

[bobswire]

I'm really sorry to hear it, they priced themselves out of the market trying to do too much instead of concentrating of what they did best, steel and Ti. IMO
Maybe Ben can go back to operating a one man shop like he did when he was in demand.

[Onno]

SARATOGA SPRINGS, NY (BRAIN) — As the Serotta bicycle company fulfills final orders and prepares to shut down bike production here, founder Ben Serotta said he intends to continue making bikes, under his name or another.

"It was a 60 degree brilliant sunny morning this morning, and I was out on my bike before work, and I though, 'OK, this is why I do this, how lucky am I?" Serotta told BRAIN Wednesday. "This is a great business to be in. Every time I go out on a damn bicycle I get fully recommitted."

"I ...will be able to build bikes another day." — Ben Serotta
Serotta said he no longer owns any part of the company or brand that he launched 41 years ago.

Last month, Serotta was merged with Blue Competition Cycles and Mad Fiber Wheels to become the Divine Cycling Group. But the merger did not bring with it any increase in funding for the already-struggling company and Serotta's managers soon concluded they needed to shut down.

"We had absolutely no choice. We had to face all the truths, and the truth is that unless something chanegs the best we can promise anyone, including ourselves, is that we will honorably complete the orders on hand," Serotta said.

DCG officials have not responded to phone calls and emails from BRAIN for comment on this story.

But Serotta said he and CEO Bill Watkins have been negotiating to "extricate" the Serotta brand from DCG.

"Nothing against Mad Fiber or Blue, but as soon as it was obvious that we were, collectively, in a bit of hurt, we wanted to pull Serotta out. We believe we have a viable plan to carry the company forward."

"In my view, one way or another, I, and likely some of the dedicated crew here, will be able to build bikes another day. When that would be and what those bikes might be called, I can't say.

"I remain optimistic, for no particular reason other than that I am hard headed, as are our craftsmen on staff," he said.

[Onno]

So good news and bad news: Ben doesn't seem to own the brand, and it looks as though Serotta truly is dead. But he and others at the company will start over...

[slidey]

Not unexpected at all, but certainly shocking in terms of its timing. There was so much activity in terms of the DCG merger, the Pronto, renewed efforts of sponsoring amateurs at various levels, and now the end.

All the very best to those facing the brunt of this move.

[FlashUNC]

Originally Posted by Onno

So good news and bad news: Ben doesn't seem to own the brand, and it looks as though Serotta truly is dead. But he and others at the company will start over...

So....Saratoga Racing Cycles order for 2015 then?

[David Kirk]

It is a sad day for all involved.........the current employees and their families,
the dealers, the alumni like myself and so many others that got their start in the biz through Serotta and of course to Ben and Marci Serotta.

I don't have as much contact with Ben these days as i would like and miss spending time with him. One of the main reasons I took the job there in 1989 was that Ben's passion for making a better bike was obvious and evident in every breath. At the center of it all is the core desire to make better bikes.........the biz part has always gotten in the way of that - and - at the same time has been the lifeline.

My heart goes out to all my old friends who now have too much free time on their hands after years of hard work and devotion to the brand. I hope in time that they feel the same way about the brand as I do......that is is family.

Be well old friends and take good care. You know where to find me should you ever need my help.

Dave

[EDS]

Going to lube the chain on the Serotta and take her out to honor the memory of the Company, the people behind it and their history.

[Z3c]

Originally Posted by Ken Robb

I think one of the reasons for the ultimate failure is that the "name" only had value to a discerning few. There was no big marketing/advertising program so name recognition is nil to most bicycle buyers.

Yep to this plus failing to adjust to the market with their recent moves dealt the death card. Let's be honest; even the folks here who are in their segment here were pretty critical of the recent changes. Clearly the general cycling market was pretty unimpressed.

[gavingould]

oof. not the kind of news we were all hoping for here. maybe there's still a way out of this, but wasn't a good sign when Divine came in.

i imagine the two Bobs came by and talked to each employee...

[OperaLover]

is a registered trademark of Great American Bicycle, LLC LIMITED LIABILITY COMPANY NEW YORK 41 Geyser Road Saratoga Springs NEW YORK 12866.

The mark is presumbably owned by this entity. Hopefully Ben is a member of the LLC. The application itself was signed by the attorney of record. Nothing unusual about that.

The registration is not subject to a declaration of continued use to maintain it until 2016. Otherwise, without use the mark could be abandoned.

Hopefully Serotta or whoever they may be in the future can retool and relaunch the brand. Waterford, Lynskey and others, lost their brands, but have managed to keep going without losing their essence.

I wish them the best!

[vqdriver]

horrible news. sounds like there's a glimmer of hope that production will start up again. but perhaps only just a glimmer. what a damn shame.

[Climb01742]

this past sunday i went to the going out of business sale of a once-hip t-shirt company named 'rogues gallery'. before 2007-8, they sold a boatload of $80-90 t-shirts and even pricier sweatshirts. their apex was when the cast of 'entourage' wore their stuff almost every show.

as a bunch of people bought rogues gallery's remaining stock for pennies on the dollar, i asked one of the few remaining employees what happened. his answer was short and dead on, 'it's hard', he said, 'to sell $80 t-shirts today...even in tokyo.'

the world changed. they didn't.

ditto.

[Nooch]

Well, I can say orders are being fulfilled, and per a Serotta employee, my Pronto is on the loading dock. And from what I hear, the fight's not over, the towel not yet thrown in.

Exciting and saddening all at the same time.

[alexstar]

Sad day. I am surprised it came to this after the recent merger. I hope to someday own another Legend.

[Bruce K]

Sad, not totally shocking, but I am hopeful that some type of Phoenix will rise from the ashes.

The new stuff was on the right track. Just not enough money or time to let the new direction have a chance for any real success.

I still own 3 Serottas (may become 2 soon if I sell my Ottrott) but I will never part with my custom cross bike or my Meivici.

BK