Serotta lays off 40% of workforce, planning shutdown

[R2D2]

Originally Posted by Keith A

It is interesting that DCG only lists two cycling companies on it's website...Madfiber and Serotta, Blue isn't there.
http://www.divinecycles.com/

If you look at the news feed there's a mention of all three being under the same name.
Just the standard press release.

[54ny77]

Soon to be rebranded Mad Fibrotta.

[thirdgenbird]

Originally Posted by Keith A

It is interesting that DCG only lists two cycling companies on it's website...Madfiber and Serotta, Blue isn't there.
http://www.divinecycles.com/

Originally Posted by SpokeValley

Well, now. That is interesting.

What a crappy site.

Nevermind blue being missing. The HTML is so janky the serotta and madfiber links don't even work. Who signed off on that?

Edit: I sent an email to DSG.

[sitzmark]

Originally Posted by Rada

Not sure where DCG would have much if any negative cash flow with Serrota shut down. Might actually be losing less money now.

As a total company, maybe not. But someone owns the land, buildings, equipment, and whatever financial obligations underpin it - taxes, interest, maintenance, etc. So someone is holding a negative cash-flow asset even if shuttered. Businesses don't like negative cash-flow assets on the books unless they hold something positive for the future. No real market presence, a loyal customer base to Ben Serotta ... I don't see a lot of immediate upside for DCG.

Could be wrong - as I said if they are flush with cash, then they have the physical infrastructure to build frames (and other components) out of nothing quickly. Just need to find customers.

[Keith A]

Originally Posted by R2D2

If you look at the news feed there's a mention of all three being under the same name.
Just the standard press release.

I did see that...apparently the deal with Blue and Serotta were taking place at (or around) the same time. Mad Fiber was purchased back in February. Maybe the deal didn't happen with Blue and thus the lack of this reference on the companies they own

[Andrewlcox]

Is this what is going on with DCG and Serotta?

http://gawker.com/private-equity-lee...ver-1040384008

[alembical]

Originally Posted by pro12tc

Found this article from a year ago; I thought it was pretty interesting:


Brian Case likes his Serotta bikes so much, he bought the company that manufactures them.

Most interesting thing about that article to me was the incredibly low price:

Now, Case’s firm owns the Great American Bicycle Co., the Saratoga Springs company that has made Serotta bikes for four decades. Case’s company paid about $1.5 million for Serotta’s property at 41 Geyser Road, the factory and trademarks and says the company is being rebranded as Serotta.

$1.5 million for the property, factory and trademarks? damn. surprisingly low.

[laupsi]

Originally Posted by Andrewlcox

Is this what is going on with DCG and Serotta?

http://gawker.com/private-equity-lee...ver-1040384008

hate to say it but it's the American Way

[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.

[AngryScientist]

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.

wow.

[laupsi]

Originally Posted by AngryScientist

wow.

double wow

[MattTuck]

Originally Posted by alembical

“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.”

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?

[Nooch]

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.

well that's interesting...

[Highpowernut]

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.

All I can say is wow, and at least If my 4 month old bike has a problem I might still have a warranty

[mnoble485]

Originally Posted by jlwdm

I had not checked this thread for a few days and reading a number of pages all at once I was astonished at how many posts speculate about what is going on without facts. There are lots of problems and issues here and, we do not know them all. In the age of the internet lots of people love to speculate without facts. Personally, I am happy to wait and find out what is really going on.

Jeff

Jeff,
How dare you take a logical point of view and ruin our fun

Mike