Industry Digest: Giant Ends Stages Investment Plan, Wahoo Lawsuits, Peloton Seatpost Recall & More

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By: Bicycle Retailer and Industry News

Wahoo Fitness says it has eliminated all its debt with a recapatilization from new and current investors.

The company said its founder, Chip Hawkins, led the recapitalization. The terms are confidential but the company said it eliminated debt and provides “significant cash liquidity designed to extend the company’s prominence in advancing innovation in the global smart fitness and training category.”

Hawkins said, “The successful recapitalization of the business provides the flexibility we were seeking as a management team to allow for investment in innovation and growth from the company’s substantial base and category leadership position, by diversifying the breadth of its offerings to better support athletes and fitness enthusiasts. Wahoo’s management team is energized by a renewed focus on delighting its customers and continuing Wahoo’s mission of building a better athlete in all of us.”

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By: Steve Frothingham // Bicycle Retailer and Industry News

Giant Group has ended plans to invest about $20 million to take about a third share in Stages Cycling because the companies were unable to reach definitive agreements on the deal, according to documents Giant has filed with the Taipei stock exchange.

Giant had filed a notice in January saying its board had agreed to invest a total of about $20 million in Stages, which has manufactured stationary bikes for Stages in the past. The January statement said the board approved the purchase of 32.5% of Stages Cycling Inc. common stock for $6.5 million and Stages Cycling’s convertible corporate bonds for $13.5 million. Giant made the investment through its subsidiary Gaiwin US I Investment Inc.

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By: Bicycle Retailer and Industry News

The Consumer Product Safety Commission is recalling about 2.2 million Peloton bikes because of a fall-and-injury hazard because the seatpost assembly can break.

Consumers of the Peloton Model PL01 should stop using it and contact Peloton for a free repair. The company is offering a free seatpost that can be installed.

Peloton has received 35 reports of the post breaking and detaching from the bike. Thirteen injuries have been reported, including a fractured wrist, lacerations, and bruises due to falling from the bike.

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By: Steve Frothingham // Bicycle Retailer and Industry News

Wahoo Fitness has reached a settlement with a Nevada inventor who sued the company in 2015 alleging that its Kickr trainer infringed on his patent. The inventor’s suit against Foundation Fitness (the owner of Stages Cycling) also is close to a settlement.

Meanwhile, Wahoo’s patent infringement suit against Zwift continues, with Wahoo this week filing an amended, redacted complaint. Wahoo also is proposing that the court redact sections of an order that references trade information and information about the company’s financial condition.

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By: Bicycle Retailer and Industry News

Organizers of the Life Time Sea Otter Classic say total attendance at this year’s show was 76,500, up from 71,000 last year and with a significant increase in the number of corporate brands and exhibitors at the event’s expo.

For the first time, this year’s event included an “Industry Day,” Wednesday, April 20, which offered dealers and associated companies some incentives to attend, including free festival access for four days for retailers.

About 400 people took advantage of that offer and exhibiting companies remarked on the better-than-usual foot traffic at the expo on Wednesday.

The event reported that about 5,700 athletes registered, down from about 6,400 last year. Registered media was about even with last year at 335 while the number of brands represented at the expo was 1,050, up from 750 last year.

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By: Bicycle Retailer and Industry News

Capo Cycling Apparel has been acquired by industry veteran Zach Spinhirne-Martin from its founders, Robert Carbone and Gary Vasconi.

Capo, founded in 2004, is a U.S.-based brand that sells Italian-made apparel.

“I am very excited to take over this incredible brand and work to grow it into the future. It has always been one of my favorite brands, with performance-driven technical designs and amazing handmade quality,” said Spinhirne-Martin. “The Capo brand is known for high quality and Italian passion in its designs. I can’t wait to design and develop products I as a rider want to use for years to come.”

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By: Bicycle Retailer and Industry News

Rad Power Bikes will work with Redwood Materials to recycle the brand’s end-of-life lithium-ion batteries.

Consumers can bring their unpackaged battery to any U.S. Rad Power retail location. Rad Power will prepare the batteries for shipment to Redwood Materials for recycling, refining, and repurposing. Recycling programs like Redwood Materials facilitates the reuse of more than 95% of a battery’s critical metals. Recycling also reduces the need to mine virgin materials.

In addition, select Rad Power retail locations will be equipped with collection bins for small-format lithium-ion batteries.

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By: Bicycle Retailer and Industry News

N.Y. Sens. Chuck Schumer and Kirsten Gillibrand said during a news conference Sunday that they support federal legislation to regulate lithium-ion battery safety standards in the wake of increasing fires caused by the devices.

One such bill was introduced last month by U.S. Rep. Ritchie Torres (D-N.Y.) — The Setting Consumer Standards for Lithium-Ion Batteries Act — would require the Consumer Product Safety Commission to establish a consumer product safety standard for rechargeable lithium-ion batteries used in personal mobility devices, such as e-bikes and e-scooters, to protect against the risk of fires.

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By: Bicycle Retailer and Industry News

Saris, which is under new ownership since it was purchased from a Wisconsin state receivership program last year, was showing off several new rack products and its stationary trainers at the Sea Otter Classic this week.

Stefan Guelpen, the brand’s new B2B sales director, said 2023 will be a year of “consolidation” as the new owners and the industry get to know one another.

“We need to make sure the general public knows what we are doing .. we are cleaning up some issues internally, reestablishing confidence in us as a supplier,” he told BRAIN at the Monterey event on Friday.

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By: Bicycle Retailer and Industry News

Adam Miller had just returned from the Sedona Mountain Bike Festival in early March when the Revel Bikes owner and CEO reflected on the visit.

“It was really enlightening,” Miller said. “There were a lot of industry people there this year. It was cool how positive people were: ‘Wow, Revel is making these great moves, and it’s great to see you growing, even though things are so challenging.'”

Among difficult times and negative headlines in the industry — layoffs, bankruptcies and dismal earnings reports among them — Revel Bikes has been an exception.

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By: Bicycle Retailer and Industry News

Decathlon, said to be the world’s largest sporting goods retailer and a major global supplier of bicycles, is now offering its bike lines to U.S. IBDs for the first time, showing them here in a large display at the Sea Otter Classic.

Decathlon made a move to establish its large-format sporting goods stores in the U.S. in 2018. Last year, it closed its two U.S. stores and began sales of its products through its own e-commerce site and third-party sites including Walmart and Target.

Now its bike products are being offered wholesale to speciality retailers in the U.S., as well. “We’re here to show our upper-tier bikes to other retailers,” said Amy Vanderlin, Decathlon’s B2B account manager. She said it was Decathlon’s first appearance at Sea Otter. Vanderlin said Decathlon currently has one inside sales rep focused on bike sales to specialty dealers.

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By: Bicycle Retailer and Industry News

Boyd Cycling will begin on-shoring its aluminum rims in South Carolina, with the wheel brand saying this increased capacity and automation will enable it to become the largest alloy rim manufacturing facility in the U.S.

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