Saracen Cycles Ltd. becomes Saracen Bikes Ltd.

LONDON, UK (Feb 6) - Paul and Rick Stanforth put Saracen Cycles Ltd. into administration on Friday, citing "difficult trading conditions". The new company will launch the Saracen spring/summer 2006 range at a 14-venue trade roadshow, 19th February-15th March. Paul Stanforth said: "Having suffered considerable costs in the move from manufacturing to importing, followed by difficult trading conditions in the important Christmas quarter, Saracen Cycles Ltd. took the steps to go into administration in Friday February 3rd. The decision was taken to safeguard jobs and stop further losses to the company." Saracen Bikes Ltd. will take on responsibility for all Saracen Cycles Ltd's warranty issues. The new company has purchased all the stock, goodwill and intellectual property rights of Saracen Cycles Ltd. Paul and Rick Stanforth are directors of the new company. They are the main shareholders in the new company, alongside a third party investor from outside the bike trade. "Two years ago when we were still manufacturing we had 80 staff here, now there are 14 jobs here, including me and Rick. The switch from manufacturing to distribution brought with many costs such as redundancies and rent on buildings that were too big for our new needs." . Saracen Cycles Ltd. had been in investment discussions with Merida of Taiwan, one of the company's main suppliers, for 12 months. However, no deal was done, said Stanforth, because [Taiwan] stock exchange laws now prevent PLCs involved in takeovers writing off goodwill payments over a period of time.The negotiations with Merida broke down early in the New Year. Paul Stanforth said the new Saracen would not be dealing with Argos or other mass-market discounters. The relationship with Halfords would continue but Stanforth wants better ties with IBDs.(CR)