Privately-held Niner Bikes (Niner) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Colorado, case number 17-20796. Chris Sugai is president and C.E.O. of the Company, which is located in Fort Collins, CO; and Niner is represented in bankruptcy proceedings by James T. Markus of Markus Williams Young & Zimmerman. Sugai notes that the filing was “the cheapest and the fastest way to sell the company.”
In documents filed with the Court, he also indicated that Niner plans to emerge from bankruptcy by January 30, 2018 and intends to complete the sale prior to that date. Sugai went on to say that Niner had been profitable five of the last six years but lacked the resources to invest in R&D and marketing. He notes that Niner was competing with larger brands, including the major international full-line bike companies and niche brands.
About its new investors, Sugai said, “They’re a group of passionate cycling enthusiasts who want to help us grow, innovate and thrive. Their involvement guarantees that Niner will continue to be here for our riders, supporters and industry partners for years to come.” About the filing, he stated, “We will be a stronger company when we come out of this. They are not buying the company to strangle it; they like the company and they want to grow it. We think that once we see a renewal in advertising and R&D, Niner will continue to grow.”
In Court-filed documents, the Company indicates estimated assets and liabilities between $1 to $10 million.
Read more business bankruptcy news.