New Owner for Fuji, Breezer and Tuesday Distributor BikeCo
PHILADELPHIA, USA – The ownership of Fuji, Breezer and Tuesday distributor BikeCo LLC has changed again within one year. Tiger Capital Group has sold its stake in BikeCo to joint venture partner Advanced Holdings Co. Ltd. Last year Tiger Capital Group was still co-leading the acquisition of the wholesale bicycle operations of Advanced Sports Enterprises (ASE) in the bankruptcy court which was concluded last February.
BikeCo President Frank Zimmer stated that, “Tiger helped preserve our company while instituting key efficiencies to strengthen our business during a very difficult time for our company. The Tiger team, with Ryan Davis as our interim CEO, used their industry contacts and business acumen to implement cost-cutting measures, while protecting the company’s vision. We now have a stronger balance sheet and a clear path for future success.”
Chapter 11 only concerned US business
ASE handled the distribution of the brands Breezer, Fuji, Kestrel, SE Bikes, Tuesday Cycles as well as the P&A brand Oval Concepts) as well as the operation of the American retail chain Performance Bicycle (PB). The Chapter 11 only concerned ASE’s business in the United States. Advanced Sports Europe and Advanced Sports Asia continued to operate normally.
Zimmer is part of the existing management team retained by BikeCo to preside over the manufacturing, marketing and distribution of the Fuji, Breezer, Tuesday, and SE bicycle brands to a dealer network of approximately 700 independent bike shops throughout the United States. The business today employs more than 40 people, the vast majority of whom are located at its 70,000-square-foot warehouse and headquarters in Philadelphia, USA.
According to Davis, one of the key challenges facing the new ownership and management team was retaining BikeCo’s dealer network during a period earlier this year when outside liquidators were selling off inventory from ASE’s now-defunct Performance Bicycle retail operation. At that time, Performance Bicycle had over 100 company-owned locations throughout the U.S.
“The resilience of the BikeCo team through such a tough period is a testament to their character,” said Davis, Managing Director of Tiger’s Valuation Services unit. “The entire organization worked tirelessly to retain the dealer network, which demonstrates their dedication to their customers and to the sport. We’re extremely proud to have been their partner, and we look forward to watching them continue to succeed.”
Andrew Babcock, the Tiger Managing Director who helped lead the deal’s financing, added: “We are gratified to have arranged the creative financing structure and restructuring plan that shored up BikeCo’s balance sheet and enhanced its asset value. Most importantly, 43 jobs were saved, and these great brands are now positioned for success.”