Another one bites the dust...

[Gsinill]

Joie De Velo, one of Chicagoland's most upscale bike shops is shutting down.
Not too much left, saw 2 Gunnar frames and a really nice Baum Espresso f/f (seemed to be around 54 or 55) for 50% off.
Also a bunch of shop tools for sale but unfortunately no Campagnolo tool kit...

Kind of surprising, they are located in one of the most affluent areas of Chicago and had a quite a high-end ine-up: IF, Baum, Calfee, Waterford...

[oldpotatoe]

Joie De Velo, one of Chicagoland's most upscale bike shops is shutting down.
Not too much left, saw 2 Gunnar frames and a really nice Baum Espresso f/f (seemed to be around 54 or 55) for 50% off.
Also a bunch of shop tools for sale but unfortunately no Campagnolo tool kit...

Kind of surprising, they are located in one of the most affluent areas of Chicago and had a quite a high-end ine-up: IF, Baum, Calfee, Waterford...

Any idea why? Going out of biz, too much red ink? Quitting biz, owner just tired?

[Gsinill]

Any idea why? Going out of biz, too much red ink? Quitting biz, owner just tired?

Didn't ask so dunno for sure, but I would guess red ink. Owner is probably in his early 40s.
Haven't dealt a lot with them but the few times I was there it was just a little too much sales BS story telling for my taste.
The owner once tried to sell me a 54 IF Factory Lightweight, when I told him I ride 56 he said he could "dial it in" for me and insisted that I will be at least 10 - 15% faster...
I am a little surprised because I would have imagined that this might work in hoity-toity land.
They are located in a industrial park, maybe not enough drive by, walk in business.

Heard that their main wrench really knew what he was doing; not sure what others charge but some mentioned that their service was overpriced at $60/h.

[Ken Robb]

"too much BS" for you and probably lots of other folks. If someone is "sold" something that is not right for them they don't come back, they may bad-mouth the business, and they surely don't recommend it to their friends.

Without repeat and referral business every year is like a start-up year for any business.

[alexstar]

I'm in Seattle and went by Elliott Bay Bicycles... they close in a week or so. some very nice Davidsons and other bikes available at great prices. Lots of parts too. They will be missed.

[oliver1850]

I saw this week that Williamson in Madison is closing both locations after 32 years. Anyone want to buy a bike shop?

http://willybikes.com/

[Ken Robb]

Since it seems so difficult to make a profit in the retail bike business and a business generally sells for some multiplier of annual net profit how much can such a business be worth? I am not talking about any real estate that may be involve-just the business itself.

[wgp]

Add CycleLife in DC to the boutique shops closing down ... they had high hopes when they opened but have gone progressively back toward the mean of Specialized big-box bikes in recent years. Miss their old staff and vibe - what does it say when a shop decides to no longer offer group rides? They did this back at the start of this 2014 "season" and it's been a progressive fall since. A shame ...

[oldpotatoe]

Since it seems so difficult to make a profit in the retail bike business and a business generally sells for some multiplier of annual net profit how much can such a business be worth? I am not talking about any real estate that may be involve-just the business itself.

Generally it's inventory/assets minus long term debt, plus 'blue sky', which is based loosely on profit, biz age, and black magic.

When I sold I provided the 'valuator' inventory, bank statement, P/L and tax returns for 3 years.

[zmudshark]

Generally it's inventory/assets minus long term debt, plus 'blue sky', which is based loosely on profit, biz age, and black magic.

When I sold I provided the 'valuator' inventory, bank statement, P/L and tax returns for 3 years.That's more info than some Presidential candidates :eek:

[Ken Robb]

Occasionally a failing business has an assumable long-term lease that might be valuable to a buyer even though he plans a new/different business for the location.

[ultraman6970]

Did not know this guys were closing, interesting, the shop was ok but everything super expensive, well you have to consider the location and lease sure wasnt 50 cents either.

The question is, the prices are low enough to justify me going to dc to see what they have or is like.... ok.. I have 4 months to close... will put in the blog and the windows I have 50% in some items... then you go there and the only crap that is like 50% are the cookies and crap I dont even use. anybody has been there lately???


Add CycleLife in DC to the boutique shops closing down ... they had high hopes when they opened but have gone progressively back toward the mean of Specialized big-box bikes in recent years. Miss their old staff and vibe - what does it say when a shop decides to no longer offer group rides? They did this back at the start of this 2014 "season" and it's been a progressive fall since. A shame ...

[Nags&Ducs]

It seems a retail shop is not the way to go these days since it costs shops more for most high-end items at wholesale prices than what the online consumer can buy overseas.

Concepts like Winn's Wheels in Agoura Hills, CA where their core business is wheel building service and wrenching are primed to be the only survivors. Maybe there are other concepts that would work, such as a shop with a tie-in to another business such like a coffee bar/pub/gym/laundromat! Hey, I think a shop with a yoga studio would work. :)

[wgp]

Ultraman6970 -

Was in there a week ago, when they still had a decent selection of Assos clothing ... which was my interest.

Not sure what remains at this point - call them and ask for what you are interested in. I don't know what they have in back but the guy I spoke with said at some point by early October they will close the doors and then some liquidator-type company comes in and takes what's left and re-sells it.

Quite a fall from their opening as purveyors of boutique brands (Parlee, IF, etc). You are right about rent in that location, and they had a lot of space.