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Huffy applies for Chapter 11; Dorel may Takeover

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DAYTON, US (October 21) – A Canadian-owned competitor to Huffy Corp. is interested in buying the maker of one-third of the bicycles sold in the United States after Huffy filed Wednesday for Chapter 11 bankruptcy protection. Chris Hornung, chief executive officer of Pacific Cycle, said parent company Dorel Industries Inc. of Montreal is considering acquiring […]

DAYTON, US (October 21) – A Canadian-owned competitor to Huffy Corp. is interested in buying the maker of one-third of the bicycles sold in the United States after Huffy filed Wednesday for Chapter 11 bankruptcy protection.
Chris Hornung, chief executive officer of Pacific Cycle, said parent company Dorel Industries Inc. of Montreal is considering acquiring Huffy and would maintain the brand. “It’s a well-known name,” Hornung said. “I do not believe for a second that the Huffy name will go away.”
In filing for bankruptcy protection, Huffy cited losses arising from a Canadian sports equipment company.
Huffy lost $7.5 million in 2003 after losing $1.4 million in 2002. It has yet to file any financial reports for 2004 and has not said why.

Its stock plummeted from $6.80 a share last December to 58 cents in August, when the New York Stock Exchange suspended trading.

Huffy recently sold its basketball-backboard unit, its customer service division and part of Canadian-based Gen-X Sports, which makes equipment for golf, snowboarding, inline skating, skiing and hockey.

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