Serotta lays off 40% of workforce, planning shutdown

[oldpotatoe]

Originally Posted by laupsi

if the rumor is true then I guess that does it then, doesn't it? Serotta Cycles RIP!

Does Ben own his name? I know Richard Schwinn doesn't..If he 'buys' the assets, can he 'make' serottas?

[charliedid]

Originally Posted by oldpotatoe

Does Ben own his name? I know Richard Schwinn doesn't..If he 'buys' the assets, can he 'make' serottas?

I am under the impression that he does not, but was trying to get it back.

[BumbleBeeDave]

Their marketing was always inferior. I like Ben and hate to have to say that but I think it's true.

I'm pretty sure Ben does not own the name any more as it applies to bikes.

My understanding was that the two weeks was full staff and they were going to continue to come in when needed to finish out orders. If Ben and Bill had remained and/or been able to re-acquire the company then you would have gotten your ordered bike.

But in this situation? Will new owners make refunds? Do they have enough employees left to follow through on paid orders? Or will they let it all slide and dare customers to sue them?

Their web site is still up with no changes. Sooner or later the new owners will have to say something. It should be interesting.

BBD

Originally Posted by charliedid

"My understanding is these guys bought the company, couldn't get anybody to invest to keep it going, and now have gotten rid of the guy who was making a good run at a turnaround and the original owner who many present owners have an emotional attachment and loyalty to."

Or maybe they actually weren't making a "good run" of it in the eyes of Bradway. A turn around looks like $$$ and lots of orders. If all they needed was 2 weeks to finish up and close out all outstanding orders, they were not exactly booming with business. What 80 guys on a Internet Forum think of the new bikes is not to be totally dismissed in this day and age but it makes Private Equity guys happier when they see orders for bikes. Lots of them...

Emotional attachment is for Mothers and their children.

If Ben really intends to continue making bikes, wanting and or using the name Serrotta is the last thing he should ever want.

Ben built some good bikes (very, very good bikes) in his day but he NEVER built anything close to a good BRAND.

[PQJ]

Originally Posted by BumbleBeeDave

Their web site is still up with no changes. Sooner or later the new owners will have to say something. It should be interesting.

They don't have to say anything. They just have to remove the "Ben Serotta, Our Founder" link and replace it with a short shout-out to Serotta's history. Funny how the royal we are imputing bad motive to the new buyers.

[R2D2]

Originally Posted by steveandbarb1

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

Is PENN made in China or USA? Machined aluminum reels are made in USA (Philly). Diecast or injection molded products are made in China.

[christian]

Any PENN reel under ~ $250 is made in China.

[Tom]

Originally Posted by BumbleBeeDave

... Or will they let it all slide and dare customers to sue them? BBD

As of 1330 yesterday I was given a due date for some warranty work, I believe they haven't changed anything there.

[1centaur]

Glass half full...

If Ben and Bill have a real business plan, being free of "Serotta" means no limitations, expectations, legacy, brand name continuation, etc. Clean sheet, buisness guy and a bike theorist, do they have a financeable plan? They would quickly find out.

Or perhaps Bill as a Bradway consultant is now excess baggage for Ben. If he's going back to his roots with a couple of guys from Saratoga, he does not need full business plan thoughts from Bill.

I'm sure we'd like to hear Bill's retrospective of the last few weeks and months from outside the corporate umbrella, but he may have a no disparagement clause in his separation agreement and so we will be left speculating up to page 23 and then move on with our lives.

[54ny77]

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

Originally Posted by PQJ

They don't have to say anything. They just have to remove the "Ben Serotta, Our Founder" link and replace it with a short shout-out to Serotta's history. Funny how the royal we are imputing bad motive to the new buyers.

[BumbleBeeDave]

Originally Posted by PQJ

They don't have to say anything. They just have to remove the "Ben Serotta, Our Founder" link and replace it with a short shout-out to Serotta's history. Funny how the royal we are imputing bad motive to the new buyers.

. . . and that would be interesting, too, wouldn't it?

BBD

[BobbyJones]

How many of you have started a company with your name over the door doing something you love and kept it going for 40 years?

If so, have you elevated your status to "pioneer" or "legend" in your industry?

Curious. Very Curious.

[SamIAm]

Originally Posted by BobbyJones

How many of you have started a company with your name over the door doing something you love and kept it going for 40 years?

If so, have you elevated your status to "pioneer" or "legend" in your industry?

Curious. Very Curious.

I have not, I have started a few and bought one out of bankruptcy that kind of fits the description above. The proprietor at the time was quite impressed with his run, but from my perspective it was a very self centered perspective, because even though the company had remained in business for many years there was countless collateral damage that various investors, employees, customers and tax payers had suffered keeping it in "business".

[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.

[Liberace]

This reminds me of Guru, but with more drama.

[weatherman]

Originally Posted by sitzmark

You've got a senior management team publicly sharing dirty laundry and most likely making "rogue" decisions to shut down operations. That leaves a non-producing entity for the ownership ... nothing in the pipeline to leverage or secure investment. Drives down the potential value of the company if you're trying to engineer a buyout, but doesn't do anything for the current owners.

Hard to know what's going on, but it appears (to me) to be a power play and the ownership has decided their interests are not served by a management team trying to undermine them. Conversely, Ben and Bill are doing what they believe they need to do to secure a buyout and the future for the company that they envision.

Absolutely think you are on to something here. Also saw an earlier comment (and I know for a fact as I was also approached to invest in this deal) that neither Bill nor Ben have any equity---I really struggled with that one and how incentives could be properly aligned......lots of issues here, but does clearly appear (IMHO) to be a power play here and, in my opinion, some unprofessional moves on both sides of the table.

My contacts (a former employee who was let go here recently) also noted that there seemed to be a chasm between the ownership group and management group (as noted above, with no equity at all) about the proper sales/marketing plan with the later wanting to subscribe to a build it and they will come approach......

This was a mess of a situation, and appears to be even more of a mess now. Unfortunate for all, to say the least.