Schwinn/GT For Sale

BOULDER, Co/USA (April 10) - After the receivership of Schwinn/GT Europe (including its UK and German business) its US parent company Questor partners Fund announced that it will sell GT Bicycle, Schwinn Bicycle and Schwinn Fitness divisions. It is expected that the sale of the group of companies or the individual companies, will take at least some months. According to Taiwanese sources, some manufacturers already refused to produce for Schwinn/GT as long as their situation is uncertain and will not improve until they pay their debts to suppliers. The current outstanding debts of Schwinn/GT, which are estimated at US$ 43 million (Eur 39mn) could severely hurt several Taiwanese producers such as Merida and Taioku Manufacturing Co. According to the US trade journal Bicycle Retailer & Industry News, the troubles at Schwinn/GT could negatively impact the supply of independent bicycle dealers (IBD’s). Schwinn/GT in the US supplies approximately 1 million bikes annually to the IBD’s. With regard to an upcoming shortage of supply in the US, it is ironic that it is rumored that in Europe there is a lot of 80,000 GT bikes for sale at a bottom price. (JO/JB)