Serotta lays off 40% of workforce, planning shutdown

[MarleyMon]

Originally Posted by I Want Sachs?

I would find it hard to buy Serotta bikes in the future...

Yes, because they will no longer be made.
When the ceo says its a graceful landing, that means they were able to tell the employees in person and not just lock the door, post a handwritten 8x10 saying "Out of Business" and turn the phone off.
Its over - no more Serotta. This talk of building bikes again is a face-saving pleasantry. They will be gone in 2 weeks - that is what is actually going to happen!

[jr59]

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.

Ok, lets say this is so;

Who is responsible for these "Insane overheads"? Who is responsible for the loss of market share? Who ran the company down to ZERO, where they had to find an outside investor, and even his cash infusion wasn't enough to save this?

It's a hard world out there. Ben has built great bikes, yet,let the market go by.
The bottom line is that unless marketing changes are made and they can bring a bike to market that young people will like and WANT to buy. Then find a way to get said bikes to the people.


They need to sell more bikes. If they would have done this in the first place, there would be no Bill and no whoever in a takeover.

Until these problems are solved, Serotta will be a ghost, and not be a bike co at all. This fact makes me sad, but it is true!

[firerescuefin]

Originally Posted by MarleyMon

Yes, because they will no longer be made.
When the ceo says its a graceful landing, that means they were able to tell the employees in person and not just lock the door, post a handwritten 8x10 saying "Out of Business" and turn the phone off.
Its over - no more Serotta. This talk of building bikes again is a face-saving pleasantry. They will be gone in 2 weeks - that is what is actually going to happen!

Care to wager on that. I am not a fanboy, but I'd bet that Ben and Bill (maybe without Bill) will bring it back in some iteration...it maybe a 1-5 man shop, but I doubt it will disappear....just a feeling....but unlike you, I won't speak like it's a fact, because frankly neither of us really knows.

[MarleyMon]

Originally Posted by firerescuefin

...but unlike you, I won't speak like it's a fact, because frankly neither of us really knows.

They have stated their plan. Why can't you believe them? They are closing in 2 weeks - they said so! Ben Serotta does not own anything, not the brand, not the building, not the tooling.

[firerescuefin]

Originally Posted by MarleyMon

They have stated their plan. Why can't you believe them? They are closing in 2 weeks - they said so! Ben Serotta does not own anything, not the brand, not the building, not the tooling.

Did you read this thread (Letter from Ben Serotta)

Dear Friend,

I apologize for the lack of personalization in this note.

Since news broke of the planned shutdown of the Serotta facility there has been an absolute deluge of calls and emails expressing concern, hope, thanks, well wishes into the future and even offers for financial backing. I can’t thank you enough for your show of support and friendship.

It has been a difficult time for sure, but all of us here gain resolve from each other to find a path for a viable continuum of building the finest bicycles, but without the complications, restrictions and frustrations that come along with ‘outside’ corporate structure.

Bill and I have been working hard to structure a management buyout of Serotta, extricating it from the current holding company and we remain hopeful. If that doesn’t work out, there’s always plan B (or was it D?).

I believe that everyone on this planet has certain special skills. My wonderful, dedicated staff, colleagues and I are fortunate enough to have discovered some time ago that we are here to make wonderful things with our hands, hearts and minds. While many details remain between now and the future, the one thing that is certain, is that we’ll continue to make fabulous bicycles, because, that’s what we do. You can count on it!

Hope to see you on the road soon,

Ben

[WickedWheels]

It's really sad to hear the news. I've dealt with Serotta for a very long time. I'm a Serotta-trained fitter. Loved their bikes. Enjoyed dealing with them and had nothing but admiration and the highest regard for Ben. I hope that he and his staff make it through this okay.

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.

I can't imagine that this has anything to do with DCG. It sounds like they were the last hope and simply didn't come through with the financing. The nail was in the coffin the day Bradway stepped in. I used to work with the owner of Bradway and shot my mouth off about it as soon as I heard the news of the acquisition. The guy had 2 failing bike shops that eventually rolled into a "fit studio" before buying Serotta. What made anyone think that this meant a recipe for a successful bike company is beyond me.

The business end of it sound like a financial advisor talked some clients into buying a brand that was on the rocks and could be had for cheap. If it goes well then he walked into it for a song and is a superstar. If not, then it was obviously a brand that no one, not even an industry veteran, could rescue. Win-win for Bradway, who gets to puts this off on DCG for not coming up with the necessary capital. In the end they will still own the name, that can be sold off and turned into a "Motobecane" to recoup some of the original investment.

The sad thing is that up until a few days ago they were still pushing hard the idea of a "rebirth". They were pitching their new race bikes, all the while knowing that they would be shutting down. Whoever put money on one of these bikes with a "lifetime warranty" should be outraged. Where's the integrity there? When I opened up shop last year I was looking at Serotta-like companies to bring in. Serotta was not on my list because I didn't think they'd be around and I didn't want to pitch that high-end of a product that would't be supported. I refused to stock Dura-Ace 10-speed just before it changed to 11-speed. I didn't stock Ultegra 10-speed bikes this year because it was about to change. If I sold any with this stuff I made it a point to explain to customers what was coming so no one is "buying blind". This probably cost me some sales, this year and last, but I have a reputation to build. I have to sleep at night. Who's been pitching Serotta bikes for the past year with a good conscience? Is anyone missing sleep over this? I suppose that there was no choice but to keep selling... but to keep pitching it like they have been?

I hope this doesn't come across as bitter. I really do wish Ben and the staff all the best. They had an awesome run and gave it a really solid try. They built an icon in the cycling world and truly changed the bike market for the better. Had it not been for Ben's fit school there wouldn't be Specialized Roubaix, Cannondale Synapses, H3 fits, Giant Defys and a slew of other bikes targeted at making cycling enthusiasts comfortable and fast. I think that Serotta, as much as any "Lance effect", is responsible for the resurgence of road cycling by making road cycling comfortable for the majority of the population. For this I truly thank them. For raising the bar on quality control, paint, customization options, tubing control... for all of that I have to thank Ben and the crew.

I hope that they treat the brand name with the same respect as Fat Chance, rather than Ibis, Bontrager, Klein, Merlin, Motobecane, Mercier, etc, etc, etc. Serotta deserves it.

RIP

[MarleyMon]

There's always hope.
"While many details remain between now and the future, the one thing that is certain, is that we’ll continue to make fabulous bicycles, because, that’s what we do."
C'mon, Serotta is not going to build any bikes, fabulous or not, after 2 weeks. This is pie in the sky wishful thinking.

"but all of us here gain resolve from each other to find a path for a viable continuum of building the finest bicycles"
it takes more than resolve
"but without the complications, restrictions and frustrations that come along with ‘outside’ corporate structure."
how about the money, can you do it without the money? Apparently not.

[pbarry]

Originally Posted by WickedWheels

I hope this doesn't come across as bitter. I really do wish Ben and the staff all the best. They had an awesome run and gave it a really solid try. They built an icon in the cycling world and truly changed the bike market for the better. Had it not been for Ben's fit school there wouldn't be Specialized Roubaix, Cannondale Synapses, H3 fits, Giant Defys and a slew of other bikes targeted at making cycling enthusiasts comfortable and fast. I think that Serotta, as much as any "Lance effect", is responsible for the resurgence of road cycling by making road cycling comfortable for the majority of the population. For this I truly thank them. For raising the bar on quality control, paint, customization options, tubing control... for all of that I have to thank Ben and the crew.

I hope that they treat the brand name with the same respect as Fat Chance, rather than Ibis, Bontrager, Klein, Merlin, Motobecane, Mercier, etc, etc, etc. Serotta deserves it.

RIP

Well said.

[Ken Robb]

I wonder what all that expensive machinery will bring at auction. Heck, I wonder what the Serotta Building will bring. Wouldn't it be funny if Ben et.al. could buy all or part of it at distresses prices and thereby be back in business on some level?

[dd74]

Originally Posted by firerescuefin

Did you read this thread (Letter from Ben Serotta)

Sadly, that letter is just a letter and nothing more. It's not a business plan, case study or creative brief explaining to how the Serotta brand can be resurrected.

The letter is more an apology to Serotta fans than anything else.

[firerescuefin]

Originally Posted by dd74

Sadly, that letter is just a letter and nothing more. It's not a business plan, case study or creative brief explaining to how the Serotta brand can be resurrected.

The letter is more an apology to Serotta fans than anything else.

You don't think that isn't in the works....did you expect them to float it here?....I'd bet it's being worked on as we speak...or completed and in others' hands.

I have no skin in the game...don't/haven't owned a Serotta...have been critical in the past, but liked what I saw in their latest iteration.

[dd74]

Originally Posted by firerescuefin

You don't think that isn't in the works....did you expect them to float it here?....I'd bet it's being worked on as we speak...or completed and in others' hands.

I have no skin in the game...don't/haven't owned a Serotta...have been critical in the past, but liked what I saw in their latest iteration.

Who knows what's in the works? All I know is I saw a response similar to Ben's when Buell went out of business, thanks to Harley-Davidson. It was a note of contrition and apology, and since then (4-5 yrs ago), I haven't heard any thing about members of that brand starting anything new.

[firerescuefin]

Originally Posted by dd74

Who knows what's in the works? All I know is I saw a response similar to Ben's when Buell went out of business, thanks to Harley-Davidson. It was a note of contrition and apology, and since then (4-5 yrs ago), I haven't heard any thing about members of that brand starting anything new.

First off...I have no special knowledge and you may be right. I have a hunch that Ben and Bill don't want to go out this way and will go down trying to make it work.

Not sure motorcycle production correlates well with frame building....but I don't think that was your point anyway. Hopefully, you're wrong

[christian]

Originally Posted by dd74

I haven't heard any thing about members of that brand starting anything new.

I don't think you've been paying attention.

[dd74]

Originally Posted by firerescuefin

Not sure motorcycle production correlates well with frame building....but I don't think that was your point anyway. Hopefully, you're wrong

They correlate very closely. In both instances, a larger company owns and potentially funds (or not) a smaller more boutique brand. The Buell and Serotta situations almost mirror each other.