Cosmic Kid
Posts:4209
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| 06/19/2013 12:28 PM |
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All 3 were purchased by an equity / investment group and will be operated under the same umbrella now.
History tells me this rarely works out well.....we'll see. |
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| Just say "NO!" to WCP!!!!
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C2K_Rider
Posts:173
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| 06/19/2013 12:49 PM |
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"equity / investment group"
I feel sorry for them! Been through that kind of thing. Rough times ahead, at least short term. |
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vtguy
Posts:298
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| 06/19/2013 01:42 PM |
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| What's the rationale for combining Serotta & Blue? This isn't rhetorical -- I'm curious and not plugged into the industry. |
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Cosmic Kid
Posts:4209
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| 06/19/2013 03:06 PM |
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Serotta and Blue don't really compete against each other. Blue has a pretty big presence in triathlon and very much a "racer's" brand. Serotta has lost that distinction over the years and is now seen similar to Seven.....a great brand with custom options for people with $$ in their wallets.
By owning both, you cast a larger net across the market w/o having to compete against yourself.
They are also not necessarily "combining" them....for now, each will continue to operate as before, separate and distinct. How long that lasts reamins to be seen.....my guess is "not long." |
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| Just say "NO!" to WCP!!!!
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jacques_anquetil
Posts:245
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| 06/19/2013 08:10 PM |
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| does/didn't 6ix work at blue? also: mad fiber wheels rule the world! so sexy. |
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jrt1045
Posts:363
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| 06/20/2013 10:27 AM |
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until they give Ben the boot, Serotta will be a mess no matter who owns it. That experiment took a wrong turn about 10 years ago when they started with vertical integration on their entire production process and building custom bikes with a flag pole for a head tube. They (ben) are so wrapped around the axles with too many crazy details to make a bike in an economical way. They cnc their own seat collars and own a carbon facility on the west coast, they don't see anyone capable of producing anything they use in the production process. Totally crazy, I see it as an OCD sickness. Love to see equity groups crash and burn, but seeing Serotta go the way of Merlin is sad to see
Blue is just a marketing company that buys open mold frames. Flirted with respectability a few years back but has lost market share and dealers. Mad Fiber is interesting and has potential. Together, I see a turd wrapped in a bow - all 3 brands will suffer. |
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bobswire
Posts:304
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| 06/20/2013 10:31 AM |
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| I would love to have a Blue Serotta with MadFiber wheels. |
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Cosmic Kid
Posts:4209
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| 06/20/2013 11:59 AM |
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Blue is just a marketing company that buys open mold frames
Ummmm.....no. Blue does their own frame designs and our own 6ix has done some of them (the AR series if memory serves correctly).
They also have a great tri bike that is 100% their own design. |
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| Just say "NO!" to WCP!!!!
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6ix
Posts:485
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| 06/20/2013 03:31 PM |
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This news certainly came out of left field! I can see some benefits of Mad Fiber and Blue being together, but Serotta??
As Cosmic noted, Blue only builds their OWN unique designs. Nothing is open-mold at all. I helped with the AC series and the latest Triad. While I'm likely biased, they offer fantastic bikes that are very well thought out. And the geometry is near perfect. |
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Pin0Q0
Posts:229
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| 06/20/2013 03:38 PM |
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Divine Cycling Group, Inc......Divine indeed.
MF are definitely sexy but even more impressive is the design and construction of their wheels, hence the name I am assuming.
http://www.bikerumor.com/2013/05/30/mad-fiber-wheels-tested-to-the-extreme/
Here is a brief startegy behind the merger.
http://www.bicycleretailer.com/sites/default/files/downloads/article/DCGPR1Final.pdf |
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nightfend
Posts:48
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| 06/28/2013 03:44 PM |
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| Serotta is a boat anchor for those other two brands. I guarantee the first thing that gets moved to China will be the Serotta forks. |
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Cosmic Kid
Posts:4209
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| 07/31/2013 05:58 PM |
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Well....looks like THAT didn't last long. Serotta is shutting down.....
That sucks.....
SARATOGA SPRINGS, NY (BRAIN) — Serotta has laid off 40 percent of its workforce and is planning to shut down production in the next two weeks, CEO Bill Watkins told BRAIN on Wednesday.
The company was recently merged with Blue Competition Cycles and Mad Fiber Wheels to become part of the Divine Cycling Group. At the time of the merger, DCG said the combined brands would be better able to attract investment and pool resources. However, Watkins said the merger did not result in any immediate increase in funding, forcing him to lay off eight or nine employees on July 19.
DCG officials were not immediately available to comment.
Mad Fiber spokesman Jasen Thorpe told BRAIN on Tuesday that production was continuing at the wheel company and there had been no layoffs there. Blue Competition CEO Steven Harad was not immediately available to comment.
Watkins said Serotta has closed its factory in Poway, California, and laid off all the employees there. Serotta's remaining bike builders in New York were working to complete orders.
"We still have a core group of craftsman still producing bikes, but we are not accepting orders. I'm anticipating a shutdown in two weeks. I do not know if that will be temporary or permanent while the owners figure out what to do," he said. "I'm working to build out the runway and land this airplane gracefully and professionally."
"[DCG] have not invested any capital that was required to consummate the merger, and to fuel the plans that each of the three companies had at time the merger was being discussed. Ben [Serotta] and I disclosed what we were doing, they bought into plan and said, 'Go for it,' and we did the plan ... but the funds never came. We got official notification last week that the funds would not be coming." |
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| Just say "NO!" to WCP!!!!
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Master50
Posts:340
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| 07/31/2013 09:24 PM |
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| top of my wheel lust list. actually second to lightweights but at these prices Mad Fibre wins by 1500+ dollars. |
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jrt1045
Posts:363
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| 07/31/2013 09:40 PM |
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| This is a situation where I hate to say it, but ...I told you so. Sad day as serotta was all that for years. There are a bunch of dentists crying in their white wine and lamenting life right about now. Sell the marketing rights to bikes direct, that would be like a license to steal for those guys |
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Gonzo Cyclist
Posts:568
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| 08/16/2013 11:18 AM |
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| as my dad used to say, the two best days of a partnership or merger are the 1st, and the last, we'll see how it works out |
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