Serotta lays off 40% of workforce, planning shutdown

[cfox]

Originally Posted by MattTuck

So.... what about Poway and the talent there? Mike Lopez and company (as I understood it) had all the carbon know how... is that not true anymore? If they're only doing steel and Ti in Saratoga Springs, that kind of limits the bikes they can make, no?

Unless they want to compete with Enve and make carbon forks and tubing for other custom carbon makers, it doesn't make sense (never did) to have a dedicated carbon factory. I imagine they ran at serious under capacity just supplying Serotta with forks and tubes. Off and on they offered forks, but that line of business was never marketed clearly/aggressively and the forks were very expensive.

[christian]

Originally Posted by alembical

SARATOGA SPRINGS, N.Y. (AUGUST 6, 2013) – Serotta, one of the world’s premier manufacturers of handcrafted high-performance bicycles, aims to expand production at its Saratoga Springs factory by seeking contracts to build bikes for other cycling brands.

Could be a stopgap for the new Surlottas!

http://blogs.mprnews.org/statewide/2...a-made-dreams/

[christian]

nvm

[K Bedford]

I've intentionally stayed out of this until it played out somewhat.
First let me say it is very sad to see things at Serotta come to this.
I have very mixed emotions on how and why it has come to this and some of those are based on being one of the main people there for 22 years before being laid off in in Dec. 2008 and still to this day I remain physically close to the factory and personally close to a few that remain there at least for the time being. No matter what anybody says many fabulous bikes were developed and built by Serotta and I'm definitely proud that I can say I was a large part of that.
If it wasn't for all my years there, the experience I gained and the reputation I established in our small corner of the bike industry it would have been virtually impossible for me to go into my own thing making the bikes under my own name and I'm very thankful for that.
I won't sugar coat it.....in my years at Serotta there were some rough times for the company and for myself personally but for the most part my time there was a great experience. How many people can truly say they got to spend the bulk of their working life doing something the love.
The hurt of losing my position at Serotta still lingers to this day, so to those that have recently been laid off and for those that still face the uncertainty I can say I know your pain and you have my sympathies.
This is not good for anybody and I can only say I hope some how something good manages to emerge from it.....Kelly

[William]

Originally Posted by alembical

I had not seen this here before:
http://serotta.com/new-management-to...atoga-springs/

SARATOGA SPRINGS, N.Y. (AUGUST 6, 2013) – Serotta, one of the world’s premier manufacturers of handcrafted high-performance bicycles, aims to expand production at its Saratoga Springs factory by seeking contracts to build bikes for other cycling brands.

Under a plan to restructure the business, Serotta’s industry leading manufacturing capabilities in Saratoga Springs will be offered to cycling brands interested in providing their customers with bikes built in the U.S.

“We have two distinct assets in Saratoga Springs,” said Brian K. Case, a director at Serotta’s parent company, Divine Cycling Group (DCG). “The first, of course, is the Serotta brand and its 41-year history. The second, and equally important asset, is the entire team in Saratoga. In addition to making Serotta’s bikes so great for so long, they have the skills and capacity needed to offer unparalleled craftsmanship to other brands looking to source the highest quality American-made bikes.

“We have no plan to close the Saratoga Springs factory,” Case said. “In fact, contract manufacturing represents a significant profit opportunity for the company, which in turn may support the future of the Serotta brand.”

Patrick O’Farrell, Serotta’s director of operations, will oversee all production at the Saratoga Springs facility, including the fulfilment of current Serotta orders. A 23-year Serotta veteran, O’Farrell has been involved in every aspect of the company’s manufacturing and manages its production staff. He will report to DCG’s board of directors.

The restructuring will involve putting in place a management team that is aligned with DCG’s expanded production strategy. As a result, Serotta CEO Bill Watkins and founder and President Ben Serotta have left the company. “We wish them well in their future endeavors,” Case said.

I seem to remember a similar comment coming up here before that Serotta might want to think about using their CNC machines, tech know how, and carbon facility to make Ti, steel, and CF parts & bits for others in the biz. May be coming to pass, albeit in a totally different structure then before.




William

[William]

Originally Posted by K Bedford

I've intentionally stayed out of this until it played out somewhat.
First let me say it is very sad to see things at Serotta come to this.
I have very mixed emotions on how and why it has come to this and some of those are based on being one of the main people there for 22 years before being laid off in in Dec. 2008 and still to this day I remain physically close to the factory and personally close to a few that remain there at least for the time being. No matter what anybody says many fabulous bikes were developed and built by Serotta and I'm definitely proud that I can say I was a large part of that.
If it wasn't for all my years there, the experience I gained and the reputation I established in our small corner of the bike industry it would have been virtually impossible for me to go into my own thing making the bikes under my own name and I'm very thankful for that.
I won't sugar coat it.....in my years at Serotta there were some rough times for the company and for myself personally but for the most part my time there was a great experience. How many people can truly say they got to spend the bulk of their working life doing something the love.
The hurt of losing my position at Serotta still lingers to this day, so to those that have recently been laid off and for those that still face the uncertainty I can say I know your pain and you have my sympathies.
This is not good for anybody and I can only say I hope some how something good manages to emerge from it.....Kelly

Well said Kelly. Class act.




William

[malcolm]

Originally Posted by steveandbarb1

Worth looking at a box but I think that Penn reel is made in China :-(

I'm fairly certain the international series at least is still made in the USA. I switched to shimano years ago, better drag. Avet is another and I think better choice.

[Climb01742]

from a business standpoint, if one of the assets you've bought is a factory, and one of the other 'assets' you gained access to is a skilled workforce, and both were under-utilized, it makes a world of sense to gain greater utilization.

and made-in-america is certainly gaining market cache.

maybe we've been seeing this acquisition through a skewed lens. the lens that sees serotta as the jewel.

stepping back, maybe there aren't villains here on either side. just differing visions that can't co-exist?

[Keith A]

The restructuring will involve putting in place a management team that is aligned with DCG’s expanded production strategy. As a result, Serotta CEO Bill Watkins and founder and President Ben Serotta have left the company. “We wish them well in their future endeavors,” Case said.

...and don't let the door hit you on the way out

Interesting that they say that Ben and Bill have "left the company" due to differing production strategies. One day it would be nice to know what really went down.

[firerescuefin]

......climb had a lot of good things to say that i cant argue with ....my perceived issue/problem is that there was a sort of bait and switch...where Bill and Ben were told one thing...and there was little or no intention in supporting what they agreed to....once the papers were signed the die was cast.

[djg21]

SARATOGA SPRINGS — Benjamin Serotta, the founder of Serotta, the Saratoga Springs company that makes custom bicycles used by elite riders in the Tour de France, has been ousted along with its CEO in what appears to be a dramatic shift in business strategy.

The news comes just days after the company revealed that it had closed its California fabrication facility and laid off many of its local workers in a bid to stay afloat that included not taking new orders for bikes.

http://www.timesunion.com/local/arti...up-4710013.php

[charliedid]

Originally Posted by Charles M

Hopefully, in the case Ben was fired, it also voided any potential conflict with his doing something on his own and smaller.


Saratoga Cycles?


Business wise, with as many missteps as have happened over the past decade or so, it's VERY hard to argue that Ben's forte is in business management.

But product quality wise, from steel to Ti to Carbon/metal and full carbon, it's hard to argue that he didn't have a passion for making a very good product from multiple materials.


I would think a smaller operation with less grand intent would work. I think it's been 3 tries with overly optimistic direction that were simply never going to pay off...

But I would buy a bike from Ben.

Agree.

[MattTuck]

I'm going for a ride in a few minutes, hopefully no news breaks while I'm away. I may never catch up with this thread.

[spiderman]

As you know...on krypton
What we recognize as the letter s
Isn't an s at all
It's a symbol of hope...
Here's to you Ben
And the 100k I have in my legs
Because of you!
I salute you
And thank you for helping me
Every mile down the road
Enjoying the ride
And my life
As a direct result of your influence!
Cheers
spidey
Time for my first post ride beer in the shower
Ever!
Thanks also to you, too angry
For such a perspective changing idea...
...and dabee for the twin cities beverage!
Maybe summit will be a new steel frame offering
Based out of Saratoga springs...

[Louis]

This whole story sounds more like billion-dollar corporate takeover maneuvering, than the evolution of a small company in a niche industry going through hard times.

What a soap opera.