News Article

Schwinn/GT Rebuild

Sales & Trends

BOULDER, Colorado/USA (September 25) – Pacific Bicycle and Direct Fitness together paid $151 million (€ 166 million) for all assets of Schwinn/GT on September 21 after Pacific had ensured the Schwinn Fitness part already on September 11. Schwinn Fitness will remain in Boulder, Co., but Pacific is moving both Schwinn bicyles and GT to Madison, […]

BOULDER, Colorado/USA (September 25) – Pacific Bicycle and Direct Fitness together paid $151 million (€ 166 million) for all assets of Schwinn/GT on September 21 after Pacific had ensured the Schwinn Fitness part already on September 11. Schwinn Fitness will remain in Boulder, Co., but Pacific is moving both Schwinn bicyles and GT to Madison, Wisconsin and Vernon Hills, Illinois respectively. Pacific has considered to sell GT, but has got no bids they wanted to accept for the brand value. With regard to Schwinn, it looks like this brand will be sold through mass-markets plus specialist retailers. Pacific’s Cycle CEO Chris Hornung states in a recent press release, “We are considering our options, the earliest we would introduce Schwinn to mass retail would be fall 2002. We want to speak with dealers to determine how we can best support them using our high-volume, efficient business model.”
Some 50 out of the 300+ Schwinn/GT staff in Colorado and California have been offered new jobs with Pacific. As a first move in the Schwinn/GT rebuild, Pacific skipped the P&A business, and will focus on sub-$500 models in the future. (OB)

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