Serotta lays off 40% of workforce, planning shutdown

[David Kirk]

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 my long time friend - I feel the same way.

Dave

[BumbleBeeDave]

Originally Posted by 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?

. . .and one thing I found out in newspapers is that there are always (at least) two sides to every story.

For the sake of the people who still work there I hope they are going to be able to find some work for them to do. The question remaining for me is who they will find who would want their bikes made in the USA when the production cost realities are so skewed toward oveseas from what I know of them.

Another question that occurred to me is this . . . What are the differences in abilities to write off losses if they buy the company, shut it down, and just sell everything vs. buying the company, at least making a show of trying to make a go of it, then shutting it down and taking the whole thing as a tax loss? Could they be just making a show of it to be able to partially save their investment be shutting it down and liquidating?

I guess a lot will depend on who they install as new leadership and whether that leadership has any previous experience in the bike biz and any contacts they could use to actually locate some work to take in.

BBD

[sitzmark]

Originally Posted by 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?

Most likely this.

If Ben/Bill can find funding, they can probably take their loyal customer following and turn it into a custom shop. New brand, but same product.

Doesn't sound like Case and Ben shared the same vision after all. I did read that Case has a 6% or 9% stake in DCG as a result of the acquisition/merger, as well as a Director position. So he obviously buys into the volume by contract manufacturing concept. With all that is going on in Asia - rising wage pressure, regulatory and legal issues, political issues - it could work. As you note, there is a US industry trend to "reshore" where possible.

"Serotta" is a jewel, where Serotta is synonymous with precision and high quality. What will be interesting is to see if the "Serotta jewel" remains as a pioneering movement in the industry with the infrastructure separated from the visionary. Are the owners of the infrastructure best positioned to innovate, or are they satisfied to milk what they have inherited? Can Ben retain the faithful and turn vision to frames without the infrastructure? Certainly metal easier than carbon. ... New beginnings for everyone.

[54ny77]

I sense a Lifetime Television movie in the making. Who's going to play Ben Serotta?

As sngk pointed out, Larry David is the better call:

Originally Posted by Louis

What a soap opera.

[sngk]

Larry David.
Just kidding, I really think this story is sad.

[retrofit]

Looks like we've officially entered the world of pre-DCG Serottas, not unlike pre-Trek Kleins and pre-Trek Lemonds.

Originally Posted by 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.

Yup. Sounds like Serotta was "harvested."

.

[dekindy]

Thanks to Kelly's comments I now see the departures of skilled Serotta frame builders from a totally different perspective. Glad they left when they did and were able to develop business models that they can live with.

How do you see Ben Serotta's role in a new venture? Management only? Does he still have the skills to hand make bicycles himself using the latest materials or is it like riding a bicycle(pun intended), you never forget?

BTW, saw a Blue bicycle on my way to Son's therapy. Hardly ever see one around Indiana.

[Climb01742]

kelly is a class act. and his post raises an interesting irony...

when kelly was laid off in 2008, after 22 years of loyal and remarkable and one could argue indispensable service, i wonder who did the laying off? one of the two men who were 'laid off' today? karma maybe?

i wonder if the same words were heard, seven years apart, 'nothing personal. it's just business.'

[pdmtong]

so saratoga springs becomes a high-end usa contract mfg for ... who?

the new specialized s2 (squared)-works?

hampsten?

gaulzetti (again)?

we need a little speedvagen magic dust here - partner with a sought after designer/fitter and have the bikes built in saratoga springs....

know what is sad? I made a pdf of the website page showing the current price of my frame and fork in case I need a reference point for an insurance claim....

[LegendRider]

Originally Posted by Climb01742

kelly is a class act. and his post raises an interesting irony...

when kelly was laid off in 2008, after 22 years of loyal and remarkable and one could argue indispensable service, i wonder who did the laying off? one of the two men who were 'laid off' today? karma maybe?

i wonder if the same words were heard, seven years apart, 'nothing personal. it's just business.'

Bill Watkins started at Serotta in October 2012, so he didn't terminate Kelly.

http://rustylion.com/focus-laser-beam-or-street-light/

[Climb01742]

Originally Posted by LegendRider

Bill Watkins started at Serotta in October 2012, so he didn't terminate Kelly.

http://rustylion.com/focus-laser-beam-or-street-light/

Bill wasn't the one I was referring to.

[fiamme red]

Originally Posted by pdmtong

so saratoga springs becomes a high-end usa contract mfg for ... who?

Merlin?

http://www.competitivecyclist.com/fr...ght-36927.html

"But, of course, we can't discuss the topic of Merlin without mentioning its uncompromising level of craftsmanship. Every Extralight features American sourced titanium tubing and is hand-built in the USA."

[54ny77]

Martha Stewart's new K-Mart line of comfort bikes.

Originally Posted by pdmtong

so saratoga springs becomes a high-end usa contract mfg for ... who?

[R2D2]

Originally Posted by pdmtong

so saratoga springs becomes a high-end usa contract mfg for ... Who?

The new specialized s2 (squared)-works?

Hampsten?

Gaulzetti (again)?

We need a little speedvagen magic dust here - partner with a sought after designer/fitter and have the bikes built in saratoga springs....

Know what is sad? I made a pdf of the website page showing the current price of my frame and fork in case i need a reference point for an insurance claim....

qbp.......

[bironi]

Originally Posted by 54ny77

http://www.youtube.com/watch?v=zSAJ0l4OBHM

Now that was a painful trip back in time.