Biggest Bike Retail Chain in U.S. Closes its Stores
PHILADELPHIA, USA – Performance Bicycle, once the biggest bike retail chain in the U.S. with 104 stores and 1,700 employees, is closing all its outlets. The company is to continue as an e-commerce business. It’s the latest development in the collapse of Patrick Cunnane’s Advanced Sports Enterprises (ASE).
ASE was the roof company of ASI (as a wholesaler distributing the brands Breezer, Fuji, Kestrel, SE Bikes, Tuesday Cycles as well as the P&A brand Oval Concepts) and the American retail chain Performance Bicycle. ASE was formed in August 2016 after Advanced Sports International (ASI) acquired Performance Bicycle’s retail business. Next to its 104 stores it operated online businesses through Performancebike.com and BikeNashbar.com. These two webshops are continuing their operations under new ownership.
Tiger Capital Group
According to a report by the U.S. trade publication Bicycle Retailer and Industry News the new owners of ASE, as well as the PB webshops Performancebike.com and BikeNashbar.com, are three companies that formed Tiger Capital Group. This Group placed an (accepted) bid of USD 23 million for the assets of ASE, which had filed for Chapter 11 bankruptcy in mid-November 2018. Among these three companies is Advanced Holdings Co. LTD. This is a Hong Kong based private equity firm that holds ties to the owner of Ideal Bike.
Ideal Bicycle Corp hit hard
Ideal Bicycle Corp has been hit hard by the bankruptcyof Patrick Cunnane’s Advanced Sports Enterprises (ASE). This is the 3rdbiggest bike maker of Taiwan that for a very long time maintained a strong supplying relationship with Patrick Cunnane and his Advanced Sports Enterprises. In 2016 Ideal even increased its investment in ASE to support Advanced Sports’ acquisition of Performance and Nashbar. Ideal Bicycle Corp. also holds major interests within the European bicycle market. Not only is the company one of the investors in Ridley Bikes, but it also operates a facility in Poland.
Ideal Bicycle Corp holds strong ties with Advanced Sports Europe also. This company, officially named Advanced Sports GmbH, is financially and legally independent from ASE as well as ASI. At the time of the announcement of ASE’s Chapter 11 it claimed not to be affected by it.