Advanced Sports Enterprises (ASE), the parent company of retail chain Performance Bicycle, as well as bike brands Fuji, Kestrel, and Breezer Bikes, has filed for Chapter 11 bankruptcy, the company confirmed Friday.
ASE was formed in August 2016 when Advanced Sports International merged with Performance Bicycle. The company also owns Bike Nashbar, SE, and Tuesday Cycles
Performance Bicycle is a chain of 104 bike shops throughout the U.S. According to a report by Bicycle Retailer and Industry News, the bankruptcy filing may force ASE to close 40 of those retail locations, given that its retail business has been in decline.
Patrick J. Cunnane, ASE’s president and CEO, said that the Chapter 11 filing was the best way forward.
“We’ve taken a lot of steps to right the business over the past 27 months,” said Cunnane. “We have conducted an extensive review of alternatives and believe pursuing a restructuring through Chapter 11 is the best path forward to ensure ASE’s long-term success.”
He noted that BMX brand SE Bikes has been a particularly successful component in ASE’s portfolio. Also, according to the ASE press statement, sales of Fuji Bikes, Kestrel Bicycles, Breezer Bikes, and Tuesday Cycles are also steady.
In the press statement, Cunnane added that ASE’s brands will carry on throughout the process but warned that layoffs and store closures were looming.
“While ASE is undergoing the Chapter 11 process, we will continue with business as usual; orders will be fulfilled and Performance Bicycle stores will continue operating,” he added. “Employee layoffs and store closings are inevitable, but at this time I do not have enough information to announce those plans.”