The Pro's Closet at it again

[bthomas515]

I imagine they’re going to start slashing prices again - a few bikes I’ve been following have jumped back up in pricing. I’ve seen a few closing sales return to original price then cut every day the price down less and less.

[Look585]

Originally Posted by echappist

(snip)

The PE firms will just write off the losses

The PE firm has already been paid through underwriting, financing, and management fees. It is the PE Fund Investors (foundations, endowments, pension funds, etc) that will eat any losses.

[nmrt]

What you're trying to say is this:

“The evil that TPC did lives after them;
The good is oft interred with its bones.”

Originally Posted by Clean39T

Could not agree more with all of that --

TPC's customer service has always been excellent from my perspective. Maybe it's one of those you-get-what-you-give things. I only wish they would have stayed what they were pre-covid, or reverted to it.. but maybe CyclingUpgrades has to carry that torch now. And BuyTheMojo.. and ElevateCycling. And GearTrade (who's tied to Backcountry so maybe they are dying too..).

[EB]

Originally Posted by Look585

The PE firm has already been paid through underwriting, financing, and management fees. It is the PE Fund Investors (foundations, endowments, pension funds, etc) that will eat any losses.

Not really. Private equity partnerships are structured around a portfolio of investments with a certain expected IRR. A certain number of the positions within the portfolio are expected to lost money or even go bust. The investors in whatever upstream Bain VII yada yada fund that invested in TPC will be fine based on the other investments that fund made. If the entire fund is poorly managed, yes, the LPs will lose some money, but it's analogous to a mutual fund investment that a normal person might make - the main difference being that the LP can't just get their money out any time they want to.

[KJMUNC]

Originally Posted by Clean39T

Could not agree more with all of that --

TPC's customer service has always been excellent from my perspective. Maybe it's one of those you-get-what-you-give things. I only wish they would have stayed what they were pre-covid, or reverted to it.. but maybe CyclingUpgrades has to carry that torch now. And BuyTheMojo.. and ElevateCycling. And GearTrade (who's tied to Backcountry so maybe they are dying too..).

Careful.....you're sharing all the secret honey holes

[tbike4]

My order was cancelled. It was a good price for a SR 12sp chain. Oh well.

[Clean39T]

Originally Posted by KJMUNC

Careful.....you're sharing all the secret honey holes

I could use a few less fishing holes to plumb, tbh.

[Spdntrxi]

just got their going out of biz email

[mstateglfr]

How irresponsible of the AngryAsian, right?!**

[tootall]

Did anybody here buy this 61cm Aspero for $4k? I was watching it and waiting for it to dip into the $3,000’s, I was willing to risk a month on the couch but somebody saved me from myself.

https://www.theproscloset.com/produc...bike-2022-61cm

[aaronffs]

Originally Posted by mstateglfr

How irresponsible of the AngryAsian, right?!**

he could probably stand to be more specific with his highly visible platform as a well respected former journalist. not sure why he felt the need to make a victory lap post today either

[KonaSS]

Originally Posted by aaronffs

he could probably stand to be more specific with his highly visible platform as a well respected former journalist. not sure why he felt the need to make a victory lap post today either

I don't think "told ya so" with a frowny face is a victory lap. The Pros Closet could have A LOT more forthcoming in that they were going out of business over the last couple of weeks, instead of this "end of season" sale BS. I have a lot more trepidaton of buying a used bike from an entity going out of business than one that I know is a going concern. And what about those folks who are holding credit at The Pro's Closet. Are they going to get cash back, told to pick through the remains of crappy stock? Betting they would have liked to get a little more warning that they were going out of business.

[EB]

Originally Posted by KonaSS

I don't think "told ya so" with a frowny face is a victory lap. The Pros Closet could have A LOT more forthcoming in that they were going out of business over the last couple of weeks, instead of this "end of season" sale BS. I have a lot more trepidaton of buying a used bike from an entity going out of business than one that I know is a going concern. And what about those folks who are holding credit at The Pro's Closet. Are they going to get cash back, told to pick through the remains of crappy stock? Betting they would have liked to get a little more warning that they were going out of business.

Most likely those credit holders will end up as bagholders in the restructuring process. They will definitely be subordinated to any debt holders and will get nothing.

[prototoast]

Originally Posted by EB

Most likely those credit holders will end up as bagholders in the restructuring process. They will definitely be subordinated to any debt holders and will get nothing.

I don't think we know that they are actually insolvent. They got significant equity investment a few years ago, and it's possible they decided to pull the plug before going negative. In that case, I believe they would be expected to pay out cash to those with outstanding credits.

Still, I'm sure many of those with outstanding credits might have preferred a heads up, and would have actually liked to use them on bike stuff.

[adub]

In January 2021, TPC moved from its 24,000-square-foot Boulder, Colorado, location to the 137,000-square-foot Louisville facility.

You don't have to have a BComm to see that this was a yuuuge mistake!

137,000 sf facility selling used bikes and overstock, based on the covid boom numbers really?...