BikeBiz Bicycle and cycling retail news
Canada’s Dorel Industries has sold the Sugoi and Sombrio apparel brands to Louis Garneau Sports. A statement from Dorel said it was "divesting its performance apparel line of business to focus on its core strategic businesses of bikes, parts and accessories and electric ride-ons."
Dorel operates the Cycling Sports Group which includes the bike brands Cannondale, Schwinn and GT.
“Apparel is not a strategic priority and has been a drain on Dorel’s financials," said Dorel CEO Martin Schwartz.
"It is in the best interests of our shareholders for us to focus on our core businesses. Sugoi and Sombrio are a perfect fit for Louis Garneau Sports.. They specialise in cycling apparel and I am confident both brands will reinforce their excellent product offerings to retailers worldwide."
Dorel said it expects to record an estimated $11m of restructuring and other costs during the second quarter of 2018, mainly related to the write-down of trademarks and non-cash inventory markdowns.
Dorel acquired Sugoi in 2008 when it purchased Cannondale. Sombrio was added to the portfolio in 2014.
