In another sign of a challenging bike market, the parent company of the Performance Bicycle retail chain filed for Chapter 11 bankruptcy on Friday.



Philadelphia-based Advanced Sport Enterprises (ASE) will now begin to restructure its existing debt and renegotiate the leases of more than 100 Performance Bicycle locations across the country. Nearly half of those locations—at least 40—are expected to shutter permanently, with many closings happening within the next 60-90 days. ASE also owns online retailer Bike Nashbar, component company Oval Concepts, and parts distributor ASI, as well as Fuji, Breezer, and several other bike brands.

“We’ve taken a lot of steps to right the business over the past 27 months,” Patrick Cunnane, ASE’s president and CEO, said in a press release. “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.”



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Performance Bicycle has long been known for its head-scratchingly low prices. In recent years, the chain’s low margins made turning a profit difficult as customers increasingly bought their products online, said Matt Powell, an advisor for the market research firm NPD Group. Making matters worse were the Trump administration’s tariffs enacted this summer on Chinese-made bikes, e-bikes, and many components and accessories.

ASE formed in 2016 when ASI bought Performance, which was already in significant debt at the time. How bad was it? Cunnane told Bicycle Retailer and Industry News that Performance owed so much to ASI that the only way to keep both companies afloat was to buy Performance. Unfortunately, they remained unable to lower their debt in the ensuing years.



At least 40 Performance Bicycle locations are expected to shutter. Smith Collection/Gado Getty Images

While many independent bike dealers tout their staff experience and expertise as a reason to forgo online retailers, Performance remained in a sort of limbo, suggested Jeff Hutchinson, owner of All-Star Bike Shops in Raleigh, North Carolina. Customers could find lower prices online, but turned to more experienced bike shops for guidance and repair work. That left little room for a chain like Performance.

“If you’re not charging enough for your product, paying market-cost for rent, and not offering customers more of a reason to shop there, of course you’re going to have problems,” he said.

With liquidation sales expected to begin before the holidays, locally owned shops are bracing for an impact to their bottom line. “We’re going to be feeling this pain for a while,” Hutchinson said.

Despite Fuji and the other divisions within ASI remaining fairly profitable, Powell said those brands should see some belt-tightening as well. Details on which Performance locations will close should be announced in the coming weeks.

Robert Annis After spending nearly a decade as a reporter for The Indianapolis Star, Robert Annis finally broke free of the shackles of gainful employment and now freelances full time, specializing in cycling and outdoor-travel journalism. Over the years, Robert's byline has appeared in numerous publications and websites, including Outside, National Geographic Traveler, Afar, Bicycling, Men's Journal, Popular Mechanics, Lonely Planet, the Chicago Tribune, and Adventure.com

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