Custom carbon specialist Parlee files for bankruptcy

Cycling Weekly has broken the news that Parlee Cycles has filed for chapter 11 bankruptcy.

As is highlighted in the feature penned by Anne-Marije Rook, CW’s North American Editor, “chapter 11 bankruptcy is also known as a “reorganization” bankruptcy. This means that the company is in debt but can propose a plan of reorganization — usually involving a partnership or corporation of some kind— to keep the business alive and pay creditors over time.”

The announcement comes at a time of acute strain across the global industry, with excess stock meeting rapidly contracted markets, resulting in cash flow challenges for businesses of all sizes and scales, including the worlds largest bike manufacturer.

Stepping outside of the cycling industry it is clear that there are brands, retailers, and investors, looking to 2024 and beyond, making future investments in bricks and mortar retail as part of medium / long term business development strategies. This gives a more complete view of the market, where growth potential is still seen, despite the immediate future (the next 12 to 18 months ) looking challenging.

For Parlee, the opportunity to find a new partner, or investor, represents a lifeline, and an opportunity to shape a new future.

Looking to the brands past, there is plenty to attract investors with an eye for future commercial opportunities. An early years partnership with Enve, which saw the Ogden, UT based brand making tubers and forks for Parlee, reflects a modern trend for innovation partnerships, where a specialist brand sits within a wider product group. When, in the mid 2000’s Bob Parlee realised they simply couldn’t keep up with customer demand for custom, MA made, bikes, the business took the decision to produce a range of stock frames, made in the far east, ushering in a period of growth which opened the brand up to a new customer base.

Outsourcing continues to enable a host of cycling names to grow both brand, and business, where the premium name is associated with design and engineering expertise, allied with outsource manufacturing partners expertise. The brand cache of Parlee offers an opportunity, something which will likely draw interest from a variety of parties within, and potentially beyond, the cycling industry.

“Don’t be surprised if the next 10 years sees the Parlee name appear on mountain bikes, e-bikes, and anything else the market demands. But, whatever it makes, you can bet your bottom dollar that it will be from carbon fibre, and that a bunch of die-hard engineers will have spent an inordinate amount of time achieving the signature ride quality.”