Industry News

Niner To Be Sold Within The Month

An investor group has made a stalking horse offer and will acquire the company from bankruptcy unless it's outbid.

Below via bicycleretailer.com

If all goes to plan, a Colorado investor group will acquire Niner, Inc.’s assets and bring the company out of bankruptcy before the end of the month

But first, other potential buyers will be given a chance to bid for the company at an auction next Thursday.

The auction will be held only if additional qualified bidders appear by next Wednesday, the deadline for bid submissions. If no bidders turn up, the investor group’s “stalking horse” purchase agreement will be accepted and the deal will be closed on Jan. 17.

Niner petitioned for Chapter 11 protection on Nov. 27 in Denver’s bankruptcy court, listing assets of $9.8 million and liabilities of $7.9 million. A few days prior to the filing, Niner had announced that it would be acquired by an investor group later identified as Columbia Basin Partners.

At the time, company co-founder, CEO and president Chris Sugai told BRAIN that the bankruptcy filing was done in anticipation of the sale.

“This was the cleanest and fastest way to do it,” Sugai told BRAIN on Nov. 28. He said Niner had been looking for an investor or buyer who could help it grow and compete with better funded rivals in the bike market. Court filings indicated Niner was over leveraged and lacked resources to invest in product development and marketing.

“We will be a stronger company when we come out of this,” Sugai told BRAIN. “(The partners) are not buying the company to strangle it; they like the company and they want to grow it.”

… article continues at bicycleretailer.com

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Jimmy Archer

Founder and Editor at DirtTRI.com. Jimmy has been a professional athlete for over 18 years as a runner, cyclist, mountain biker, cross country skier, and primarily, triathlete. Jimmy has a degree in exercise science from the University of Colorado and is a USA Triathlon and USA Cycling certified coach. Jimmy became a freelance writer in 2000 while competing and covering the ITU Winter Triathlon World Championship. Since that time Jimmy has been head editor at two magazines, been published in numerous publications within the endurance sport, recreation, and travel segments. Currently Jimmy is competing professionally in off-road multisport. In his spare time Jimmy passionately follows Formula 1, Moto GP, and is an avid cook.

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