Quote:
Originally Posted by froze
Performance going into receivership? where did you get that load of nonsense? why not read something a bit more accurate, read this: http://www.bicycleretailer.com/north...rmance-bicycle Performance/Nashbar is not going into receivership, they are selling the company at a huge profit. |
ASI got that deal as Performance couldn't keep up their payments.
this is what is important from the BRAIN story:
ASI secured a $100 million line of credit with Wells Fargo to help finance the buyout. Ideal, Taiwan’s third largest bike manufacturer, has a minority stake in ASI and becomes a shareholder in the new company. Cunnane said the transaction was made with “very minimal debt.”
“We’ve stabilized the business [Performance] financially and they will have the opportunity to grow and make additional investments to further perfect their business,” Cunnane said of the buyout.
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They got the transaction done with minimal debt because they were already owed. A $275million business doesn't get bought with a $100million line of credit. ASI "stabilized the business" as they couldn't stabilize it themselves.
I have close to 30 years full and part time in the industry. Did my stint at Pmart up until last year. What you read in the marketing mags isn't always the truth. Support your local bike shop, unless you live in central NC, this ain't it.