BikeBiz Bicycle and cycling retail news
The likelihood of an MBO at Gazelle increases by the day and its improbable that the Derby Cycle Corporation can be kept whole much after it releases its annual results on April 2nd.
Derbys quarterly filings to the US Security and Exchange Commission make it plain that only a miracle could allow the Q4 results to make up the shortfall in cash.
In a series of departmental meetings Raleigh MD Philip Darnton has been open and honest with his staff and has explained the dire situation Derby is in.
Derbys CEO since January Alan Finden-Crofts (and its former co-owner, when it was a highly successful bicycle group) is reported to be lining up possible recapitalisation and has confirmed that MBOs are waiting in the wings.
He is treating talk of MBOs as very much a positive: nobody would want to take on the running of a hopeless case and if local managers want to buy their companies they must have faith they can be turned around.
Gazelle, of course, is highly profitable and would be an attractive MBO opportunity for its Dutch management.
Finden-Crofts who is currently in America is reducing costs across the board at the various Derby-owned companies and is righting the wrongs of the previous management.
NB
A much fuller piece on the current Derby/Raleigh situation will be included in the next issue of BicycleBusiness.
