Race Face closes its' doors.

[dimsy]

http://www.pinkbike.com/news/Race-Face-Closes-the-Doors.html

I bought a pewter race face forged crankset for my first MTB back in 1997.

Sad to see them go.

[Volant]

Anyone know the reason why "a global leader" is shutting its doors? The write-up didn't say (not moving product? shrinking margins? lack of cash-flow? bad management? just decided to close doors?).

[d_man16]

yeah sad to see them go, it's like losing a riding buddy

[avalonracing]

Anyone know the reason why "a global leader" is shutting its doors? The write-up didn't say (not moving product? shrinking margins? lack of cash-flow? bad management? just decided to close doors?).

Reason?
See: "China"

(at least that would be a guess)

[MattTuck]

Anyone know the reason why "a global leader" is shutting its doors? The write-up didn't say (not moving product? shrinking margins? lack of cash-flow? bad management? just decided to close doors?).

All of the Above, most likely.

It is surprising though, since they do have a lot of brand equity, that they couldn't find a buyer. That article was a bit light on the details...

[Bytesiz]

Last I knew, Planet X/On One was looking to purchase Race Face. I beleive they said it would happen in May if they can raise enough capital.

[Fixed]

i have one of their stems on one of my fixed gear bikes..no flex there
cheers

[ahumblecycler]

Reason?
See: "Consumer Choice"

(at least that would be a guess)

Not putting words in avalonracing's mouth (we have had many positive exchanges in the past), but I fixed it to reflect my thought behind it.

[avalonracing]

Not putting words in avalonracing's mouth (we have had many positive exchanges in the past), but I fixed it to reflect my thought behind it.

I won't argue that. If we all were willing to pay a little more for decent stuff we'd keep a lot more businesses open. Below is a good example of the fact that people want to almost nothing for products and how it affects the bottom line for everyone along the way:


http://www.huffingtonpost.com/2011/04/19/walmart-pay-worker-minimum-wage_n_851115.html

If Walmart were to pay its employees a minimum of $12 an hour, what would that wage baseline do to the retail behemoth’s famously low prices? According to a new study, probably not much.

Researchers at the University of California, Berkeley’s Center for Labor Research and Education argue that such a wage bump for the retailer’s lower-paid associates would translate into an extra cost to shoppers of about 46 cents per trip, or $12.49 a year, if the brunt of the increase was passed on to consumers.

[bigflax925]

I won't argue that. If we all were willing to pay a little more for decent stuff we'd keep a lot more businesses open.

+1

It's sad when any business goes out of business and someone/s dream/s goes with it. This is another instance where I wish I had the capital to help.

Hopefully they can be revived and not just in name only.

[BobbyJones]

It's been done.

+1

It's sad when any business goes out of business and someone/s dream/s goes with it. This is another instance where I wish I had the capital (the other would have been Pacenti's "bikelugs.com" to help.

Hopefully they can be revived and not just in name only.

[Kirk Pacenti]

I won't argue that. If we all were willing to pay a little more for decent stuff we'd keep a lot more businesses open. Below is a good example of the fact that people want to almost nothing for products and how it affects the bottom line for everyone along the way:


http://www.huffingtonpost.com/2011/04/19/walmart-pay-worker-minimum-wage_n_851115.html

If Walmart were to pay its employees a minimum of $12 an hour, what would that wage baseline do to the retail behemoth’s famously low prices? According to a new study, probably not much.

Researchers at the University of California, Berkeley’s Center for Labor Research and Education argue that such a wage bump for the retailer’s lower-paid associates would translate into an extra cost to shoppers of about 46 cents per trip, or $12.49 a year, if the brunt of the increase was passed on to consumers.


Fwiw, I know for a fact (specific companies and products) that Walmart is actually starting to encourage vendors to bring some production back to the US. They have seen a trend in price increases from China that have averaged 6% a year for the last few years.

Also, a couple insiders at Race Face claim that the core cause of the trouble had to do with the amount of dept they were carrying. Apparently they got "off-sides" (Canadian term?) with their borrowing and the notes were called in... I am paraphrasing here, but that was the gist of it.

Cheers,
KP

[benb]

It looks like there were claims of management misusing funds too...

[pbel]

A bit more info here.

http://www.nsmb.com/4287-race-faces-demise/

[dimsy]

With respect to Kirk Pacenti's comment on walmart + china...

I saw this fantastic documentary called "The People's Republic of Capitalism" which shed light on the relationship between walmart, the USA, China and the intermingling consumerism therein.

Lots of good info on that one -- http://thetvdb.com/?tab=series&id=155091 -- a rundown of the program.

In any case, I wonder if ebay/resale prices on race face stuff will go up now that they're no longer in business?

[Kirk Pacenti]

A bit more info here.

http://www.nsmb.com/4287-race-faces-demise/

Talk about "killing the goose that lays golden eggs"... :confused:

[TMB]

RaceFace was placed into Receivership by its primary secured lender.

The appointment was made about 30 days ago and is the result of the Bank receiving quarterly reports ( loan margins ) and as a result of the questions arising from those reports concluding that it has lost confidence in management of the company to properly manage the business.

That is enough to say.

[xjahx]

Yes, 'tis a bit of old news but if you want to follow the progression:

1. http://www.bicycleretailer.com/news/newsDetail/5219.html

2. http://www.bicycleretailer.com/news/newsDetail/5231.html

3. http://www.bicycleretailer.com/news/newsDetail/5299.html

That is interesting that Planet-X/On-One may purchase RF. They recently purchased Titus as well.

[Volant]

Yes, 'tis a bit of old news but if you want to follow the progression:

1. http://www.bicycleretailer.com/news/newsDetail/5219.html

2. http://www.bicycleretailer.com/news/newsDetail/5231.html

3. http://www.bicycleretailer.com/news/newsDetail/5299.html

That is interesting that Planet-X/On-One may purchase RF. They recently purchased Titus as well.


Thanks! That sums it up. Hard to get around those covenants when things get tight! I feel for the families affected by this.

[sbparker31]

Sounds like they were playing fast and loose with the bank covenants. This is a good example of where business ethics (or lack thereof) really did affect the the ability of a respected brand to maintain itself as a going concern.

[WickedWheels]

This is the most interesting article on it:

http://www.nsmb.com/4287-race-faces-demise/

Basically, it's about how Craig Pollack had a hand in bringing down the company. I won't go near any product that he's associated with in the future.

[xjahx]

Update: Purchased by local guys and former employees - http://www.bicycleretailer.com/news/newsDetail/5435.html

Looks like the On-One / Titus / Planet-X UK rumors were just that. Best of luck to the Canadians.

[d_douglas]

I learned to MTB in Vancouver while living there. Raceface was on pretty much every hardcore bike on the North Shore. There were piles of broken cranks and stems, but it wasn't due to lack of quality - it was due to people's confidence to try to do stupid things on trails.

They were a great company and made excellent products, but I could see that their foray into cheaper and cheaper price points was leading to their demise.

Bummer. RIP Raceface :(.

[billythekid]

Bummer. RIP Raceface :(.

Don't speak too soon. They are down but not out.