The Pro's Closet at it again

[rice rocket]

Originally Posted by peanutgallery

After looking thru the auction inventory and seeing the 8 Gucci parts washers I can almost kinda see how they burned thru 80 million dollars in like 3-4 years. It was probably a lot of work

They went high dollar on everything they did and I guess it was glorious. Personally, 80 million should go for at least a few decades of decadence. Disappointed there wasn't a jet or a helicopter, just a couple trailers

The MBA scribble on that whiteboard is kinda funny

There will be a few more victims of the current market. We have a pool, I put my money on Jamis

The real money was spent carrying the amount of inventory they did.

I bet they paid more in interest than what 500 parts washers would cost.

[peanutgallery]

So...that whiteboard didn't do a darn bit of good

Scaling up is always going to be a disaster these days

Originally Posted by rice rocket

The real money was spent carrying the amount of inventory they did.

I bet they paid more in interest than what 500 parts washers would cost.

[AngryScientist]

So I was out on a solo ride today thinking about this and it made me realize how little I know about business.

What do we think actually happened? I assume TPC got to the point where their debt outweighed their ability to pay the debt and operate at the same time.

What then? Do they just declare default and whatever assets are left are sold off to cover whatever possible from the leinholders?

Where this was all going in my head is: What then becomes of the name? Who "owns" TPC naming rights now? If some person or group wanted to restart TPC, is this possible?

I suppose it gets further complicated if before they declared default, if they owed, let's say $50M in debt and some investor wanted to buy the name TPC for $5M - is that even possible given the debt load?

[Jeffie]

Let's just say 3 years ago they had $40M. They 5x the size of their warehouse and in rough numbers were losing $30k/day, everyday, for 1,000 days in a row.

How this was not quickly rectified I will never understand.

Growth is so exciting until it isn't. There is no way I'd ever 5x my space on an established business in one move.

It's ok to try and fail. The question is, did they really try to save it?

[prototoast]

While they have closed, according to this article from Brain, they haven't declared bankruptcy. https://www.bicycleretailer.com/reta...eing-auctioned

I also haven't seen reports of creditors not being paid.

It seems quite plausible that they still have a potentially significant amount of cash on hand, but if they were losing money now and for the foreseeable future, it might have made sense to shut down quickly rather than continue losing money.