|   Is Rockshox in trouble? | mountainbiker2
Feb 19, 2002 2:49 PM | | You be the judge.
http://www.mountainbike.com/bread/burbank/bbk_20020219-28583.shtml |
| I hope not! | mtbikerTi
Feb 19, 2002 3:35 PM | | I hope they are not in too much trouble as they have my fork right now and I would like to see it again.
b.o.m.b. |
| i guess those recalls bit them hard... | zedro
Feb 19, 2002 6:58 PM | | or they bought to much GT stock... |
| tremendous trouble actually...(long, a little business lesson) | Green Giant
Feb 19, 2002 8:37 PM | | if they don't get a buyer or someone to bail them out very soon they will be gone.
Revenues are decreasing, which while usually bad is even more troubling when you couple that with decreasing margins. This translates into a double whammy. You are selling less, and making less on what you sell. Selling less isn't always a bad thing, particularly if you can get margins up (along with quality etc...). The best example of this I can quickly recall is what Harley Davidson has done in the past 25 years.
The one positive light that Rock Shox has right now is that there products have radically improved in both performance and quality in the last couple years, this combined with the reduction of assets, mfg costs and even little things like the obviously cheaper website etc makes them much more attractive as a takeover target (most likely scenerio). If you do a stock ticker symbol on yahoo finance rshx.ob you can see the SEC documents (or get them other places). The documents are boiled down pretty well as to Rock Shox situation. (in fact suprisingly so). The bottom line is someone will buy them as they still have a strong product name and a significant marketshare, particularly in the OEM marketplace.
Someone will buy them, and through further reductions of cost, and hopefully through some additional synergies/relationships etc should have a shot at turing them around.
Trek or specialized might be interested, but that leaves the question of differention between all their bikes, and would other OEM's still purchase from another bike mfg.
Sram might be interested also I suspect, or MAYBE even shimano since they have HUGE oem influence. I doubt a holding company will purchase them (see the groups that attempted to turn Scott and Schwinn around domestically that were not bike companies).
Should be interesting... brunswick might also jump on in.
Bottom line, without a buyer or cash they will be gonzo. But that won't happen, too strong of a brand name. |
| Well huffy has that 85 million they didn't spend on Schwinn/GT | DeeEight
Feb 20, 2002 8:36 AM | | when they lost the bidding to Pacific... :)
I'm sure Huffy would love to put rockshox forks on their bikes at Toys'r'us. |
| It is about time! should have gone under years ago (nm) | Duzzi
Feb 19, 2002 9:13 PM | | |
| No worries SRAM has reached an agreement to... | Squash
Feb 20, 2002 3:28 AM | | purchase Rock Shox. See the post from Forrest dated Feb 19 in the General Discussion forum. It should be interesting to see the type and quality of product that they'll be turning out in the future. Perhaps customer service will take an up turn too.
Good Dirt |
| |
