Posted: Mon Feb 16, 2004 6:06 pm
A quote from a past press release:
Pegasus plans few changes to Cannondale's bicycle business, which remained profitable throughout the Company's motorsports efforts. Pegasus will move forward with Cannondale's existing staff, facilities, dealer network and overall strategy in the U.S. and at its European, Japanese and Australian subsidiaries. Pegasus plans to sell Cannondale's motorsports assets.
David Uri, a Partner at Pegasus, explained why no other significant changes are planned. "Cannondale's difficulties were not related to its bicycle business," said Uri. "The problems came from its motorsports effort. The bicycle division has remained profitable, which is a stunning accomplishment given the burden and distraction that motorsports imposed."
"We have no desire to disrupt a winning formula," continued Uri. "As we've said before, our job now is to support and supplement the existing Cannondale team to allow them to concentrate on what they do best - designing, manufacturing and marketing lightweight, high-performance bicycles for the specialty retail market."
Running out of money relative to a project budget or deciding when to quit....Never the less, their motorsports division proved to be not profitable utimately because of poor management and poor marketing(lack of customers). I applaud them for trying though. They had a profound effect on the industry as we know it. Filing chapter 11 was soley to divest a losing proposition for them. They have always been a market leader in their core business and my guess is they will continue. That's pretty strong for a US based company competing against Asian companies such as Giant Bicycles. Now, if somebody like ATK contracts Cannondale to manufacture the frame (Aluminum Frabrication being their core business and expertise), and somebody else to supply an engine, maybe we'll have something.
Pegasus plans few changes to Cannondale's bicycle business, which remained profitable throughout the Company's motorsports efforts. Pegasus will move forward with Cannondale's existing staff, facilities, dealer network and overall strategy in the U.S. and at its European, Japanese and Australian subsidiaries. Pegasus plans to sell Cannondale's motorsports assets.
David Uri, a Partner at Pegasus, explained why no other significant changes are planned. "Cannondale's difficulties were not related to its bicycle business," said Uri. "The problems came from its motorsports effort. The bicycle division has remained profitable, which is a stunning accomplishment given the burden and distraction that motorsports imposed."
"We have no desire to disrupt a winning formula," continued Uri. "As we've said before, our job now is to support and supplement the existing Cannondale team to allow them to concentrate on what they do best - designing, manufacturing and marketing lightweight, high-performance bicycles for the specialty retail market."
Running out of money relative to a project budget or deciding when to quit....Never the less, their motorsports division proved to be not profitable utimately because of poor management and poor marketing(lack of customers). I applaud them for trying though. They had a profound effect on the industry as we know it. Filing chapter 11 was soley to divest a losing proposition for them. They have always been a market leader in their core business and my guess is they will continue. That's pretty strong for a US based company competing against Asian companies such as Giant Bicycles. Now, if somebody like ATK contracts Cannondale to manufacture the frame (Aluminum Frabrication being their core business and expertise), and somebody else to supply an engine, maybe we'll have something.