Serotta lays off 40% of workforce, planning shutdown - Page 7

Keith A · #91 07-31-2013, 03:56 PM

This indeed a very sad day and I echo much of what has been stated here, and I sincerely hope that Ben and all of the Serotta employees find their way forward through this difficult time.

I remember when I first moved into Brevard County and started riding with the local gang that the "racer crew" were riding Ti Serottas. At that point, I had never heard of the brand, but the guys really liked their bikes. It wasn't too long after that I bought a CSi and I can still remember my first ride thinking what a great handling bike. I still have this bike and it remains one of the best riding bikes I've been on and I continue to ride this regularly.

bikinchris · #92 07-31-2013, 03:58 PM

Quote:

Originally Posted by eddief

what a terrible american biz debacle. can you say "ibis"? a great case to be studied by a good MBA candidate. wow.

Not hard to figure out. When they turned down sales and refused to deal with bike shops, that was a door closed that would not easily be reopened.

BumbleBeeDave · #93 07-31-2013, 04:21 PM

Quote:

Originally Posted by weiwentg

OK, this thread is all about mourning Serotta's demise, but what the &*^$ is going on with DCG? Is there another side to the story? Is DCG in financial distress, or did they actually breach their contract? I hope we get some clarity on this.

. . . YES, there is definitely another side to the story.

BBD

dd74 · #94 07-31-2013, 04:24 PM

Heartbreaking. Just heartbreaking.

Jgrooms · #95 07-31-2013, 04:34 PM

Quote:

Originally Posted by eddief

what a terrible american biz debacle. can you say "ibis"? a great case to be studied by a good MBA candidate. wow.

Yes let's get a misty eyed MBA who couldn't glue three popsicle sticks together in the shape of a frame and present the 'what went wrong' scenario to a professor who never produced a nickel.

akelman · #96 07-31-2013, 04:36 PM

Quote:

Originally Posted by Jgrooms

Yes let's get a misty eyed MBA who couldn't glue three popsicle sticks together in the shape of a frame and present the 'what went wrong' scenario to a professor who never produced a nickel.

Awesome first post! Welcome to the forum, sunshine!

eddief · #97 07-31-2013, 05:05 PM

can make a decent living building bikes, then why can't the Serotta name be put on gorgeous bikes just the same? Smaller, better, boutique. A few welders, a few torches, a few finish guys, some tubes, and a great fitter.

William · #98 07-31-2013, 05:18 PM

Quote:

Originally Posted by eddief

can make a decent living building bikes, then why can't the Serotta name be put on gorgeous bikes just the same? Smaller, better, boutique. A few welders, a few torches, a few finish guys, some tubes, and a great fitter.

Very small, or very large. It's the middle range that's the hard to master.

William

BCS · #99 07-31-2013, 05:19 PM

Quote:

Originally Posted by eddief

can make a decent living building bikes, then why can't the Serotta name be put on gorgeous bikes just the same? Smaller, better, boutique. A few welders, a few torches, a few finish guys, some tubes, and a great fitter.

Probably more complex than this or we would not have had all of the great Paul Taylor threads

eddief · #**100** 07-31-2013, 05:29 PM

from what I gather about ben over the years is that he is not pathological and probably has all it takes to go back to boutique. wonder how steelman is doing after coming and going.

Quote:

Originally Posted by BCS

Probably more complex than this or we would not have had all of the great Paul Taylor threads

firerescuefin · #**101** 07-31-2013, 05:39 PM

Quote:

Originally Posted by Jgrooms

Yes let's get a misty eyed MBA who couldn't glue three popsicle sticks together in the shape of a frame and present the 'what went wrong' scenario to a professor who never produced a nickel.

....I bet the "business" decisions are precisely what brought the company down....not the inability to produce world class bicycles...had Rusty Lion come along 3-5 years ago, this conversation doesn't take place. Sorry if that offends your inner child.

spierfalls · #**102** 07-31-2013, 05:55 PM

Ben will rise again. He needs to rent a small space, start building bikes with a few faithful employees and business will boom. Insane overhead is what killed the brand not the products themselves. They build awesome bikes and everyone knows it. For sure when the dust clears, Ben will come out of this back on top. I'm sure of it. This whole situation might of been the best thing for Serotta Competition Cycles to get back on their feet under the supervision of their founder.

BumbleBeeDave · #**103** 07-31-2013, 06:03 PM

Quote:

Originally Posted by spierfalls

Ben will rise again. He needs to rent a small space, start building bikes with a few faithful employees and business will boom. Insane overhead is what killed the brand not the products themselves. They build awesome bikes and everyone knows it. For sure when the dust clears, Ben will come out of this back on top. I'm sure of it. This whole situation might of been the best thing for Serotta Competition Cycles to get back on their feet under the supervision of their founder.

This IMO.

BBD

texbike · #**104** 07-31-2013, 06:08 PM

Quote:

Originally Posted by William

Very small, or very large. It's the middle range that's the hard to master.

William

This is key. A small one or two man shop can keep expenses low. Look at the individual, well-respected builders that work out of facilities that are an extension of their home residences.

It's when you start adding in the fixed costs of facilities/utilities and needing to support multiple, sustainable wages that things start getting challenging. Some can do it - Moots, Seven, Firefly, IF, etc. are prime examples.

I would say that the difference between those brands and Serotta is that they've had a more laser-like focus on who/what they are and what they're willing to be. They haven't diluted their brands or tried to be all things to all customers.

As part of the MBA-conducted post mortem on Serotta, it would be interesting to do a compare/contrast with one of the other medium-sized brands like Moots and understand why Moots continued its meteoric rise, brand recognition, and loyal following while Serotta stumbled?

Texbike

phcollard · #**105** 07-31-2013, 06:10 PM

That would be a good plan for Ben if he still owns the branding - open a small workshop and start building Serotta bikes again.

I don't know how many of you are familiar with the acoustic guitar world but this kind of story has happened before. Lowden guitars in Ireland, founded by George Lowden, was a pretty big operation building high end acoustic guitars. The company was maybe 30 years old and building several thousands guitar per year when in 2003 some events forced the shutdown of Lowden Guitars.

The former employees decided it was worth keeping their assets all together and forked a new company - Avalon Guitars - I believe in the same building and with the same tools and everything. That company eventually ran into trouble too. On the other hand at the same time George Lowden opened his one man workshop and started building Lowden "artisan" guitars - with his name on it since he still owned the brand - at twice the price they were before. He immediately got back ordered several months, then years, and now he has a few employees helping him with the guitarmaking. He's doing very well. No stress. People are happy to get a Lowden. Life is good.