America's second biggest discount retailer - the biggest is Wal-Mart - has been unable to pay its weekly food supply bill and if the 2100-store chain collapses many bike trade companies will be hurt.

UPDATED: Kmart close to collapse

Kmart sells mainly Huffy bikes, and is big into a broad selection of P&A products.

The chain is on the brink of bankruptcy. If a chapter 11 filing is made it will be America’s biggest ever retail collapse.

The chain is not as hi-tech as Wal-Mart and many of its stores are tatty. Because of its cashflow problems, many of its stores have already run out of basic supplies.

Many US bike trade companies are in Kmart and may be hurt by any restructuring of the business. In a worst-case scenerio, such hurt could reverberate around the world.


The chain has now filed for Chapter 11 protection and is to close 3-400 stores. When filed its story on 24th January, Chris Hornung, Pacific Cycles’ CEO was quoted as saying:

"I imagine [the Kmart collapse] will have rather negative effect on bicycle sales at Kmart, but the shortfall will be absorbed rapidly by Wal-Mart, ToysRus, and other Kmart competitors."

Pacific has done very well with Mongoose in Wal-Mart.

The Huffy owner and Pacific had a tussle over GT late in 2001. Pacific won that one too.

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