Is Giant Bicycles The Reason Why Stages Closed down?? with GC Performance
Source: GC Performance Youtube Channel: Is Giant Bicycles The Reason Why Stages Closed down??
Video Is Giant Bicycles The Reason Why Stages Closed down?? with GC Performance
Video Is Giant Bicycles The Reason Why Stages Closed down?? with GC Performance YouTube Channel.
Is Giant Bicycles The Reason Why Stages Closed down??
Stages Cycling has recently made headlines for ceasing operations and laying off its entire staff. This move comes as a shock to many in the cycling community, as Stages has been a prominent player in the power meter space since its inception in 2009. The company was known for its affordable entry-level power meters, making it accessible for cyclists looking to track their performance metrics.
The news of Stages Cycling’s closure came as a surprise to many, with the company’s website showing no available stock and orders for manufacturers being halted. This abrupt shutdown has left customers wondering about the future of their Stages products, including power meters and indoor cycling brands. The company’s decision to shut down operations has raised concerns about the viability of the business and its ability to fulfill existing orders.
One of the key events leading up to Stages Cycling’s closure was its failed investment negotiations with Giant Group. Giant, a major player in the bicycle industry, had expressed interest in investing $20 million and taking a third share of Stages in an effort to expand their product offerings. However, the two companies were unable to reach a definitive agreement, leading to financial strain on Stages. As a result, Giant filed a lawsuit against Stages for unpaid invoices totaling $13.9 million, further complicating the company’s financial situation.
The lawsuit filed by Giant’s manufacturing subsidiary, Aips Technology, accuses Stages of failing to pay 161 invoices dating back to June 2022. These unpaid invoices cover a range of products, including power meters, exercise bikes, and other parts. In addition to the outstanding invoices, Giant also claims that Stages owes an additional $7 million in storage and shipping fees for products they have produced and are storing on behalf of Stages. These financial challenges have undoubtedly contributed to Stages’ decision to cease operations and lay off its workforce.
In response to the lawsuit, Stages has denied the charges and plans to defend their position in court. The company’s senior executives, including Pat Warner and Patty Murray, have left Stages to join Giant, a move that has raised eyebrows in the industry. It appears that Giant may be absorbing key talent from Stages, hinting at a potential acquisition or restructuring of the company’s assets.
The events leading up to Stages Cycling’s closure underscore the challenges facing companies in the competitive power meter market. With the rise of new and affordable competitors like Favero and Magene, Stages has faced increasing pressure to maintain its market share. Price competition and rising debt have strained the company’s financial health, leading to its eventual downfall.
As the cycling community waits for more details to emerge on May 17th, when the court case is scheduled to take place, there is speculation about the future of Stages Cycling. Will Giant acquire the company and integrate its products into their lineup, or will Stages fade into obscurity? Only time will tell, but one thing is clear – the cycling industry is in for a shakeup as a prominent player exits the stage.
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