Specialized has agreed to pay flailing Advanced Sports Enterprises (ASE) $700,000 for rights to the Roubaix bicycle trademark in the US.
ASE, which filed for bankruptcy in the latter stages of last year, has been licensing the trademark to Specialized since 2003. The company agreed to remove the trademark from the portfolio of assets that are to be auctioned off this month.
ASE also agreed to withdraw a motion it had made to the bankruptcy court last month that would have seen the licensing contract between the two companies cancelled; leaving Specialized’s use of the trademark on one of its biggest-selling bike lines in jeopardy.
A bankruptcy judge has agreed to schedule a hearing for 22 January, where the asset purchase agreement between ASE and Specialized will be considered. In the meantime, Specialized has undertaken the trademark and any related rights and obligations.
BRAIN reported that the bankruptcy court agreed to reschedule the deadline for bids for other ASE assets. The bid deadline, originally Friday, is now Monday 14 January at 5pm, local time. If competing bids arise, an auction will be rescheduled for the next day.
A sales hearing to consider asset purchase agreements remains scheduled for 22 January.