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Bankruptcy leads to closure of all three Performance Bicycle stores in Portland region

Posted by on December 7th, 2018 at 1:03 pm

Signs are up at the Beaverton store.
(Photo: Andy Kutansky)

Some people hoped a bankruptcy filing last month by the parent company of the Performance Bicycle might not result in the closure of all stores across the country.

But today the list is out and the news isn’t good: Advanced Sports Enterprises says it will close all 102 of its stores in the United States. That includes locations in Portland (Mall 205, 9988 SE Washington St.), Tualatin (7690 Montgomery Rd.) and Beaverton (3850 SW Hall Blvd.). The closure leaves Portland with just one bike shop (Outer Rim Bicycles) east of I-205.

Performance is a well-known retailer in the bike industry that was founded as a mail-order catalog in 1981.

According to Bicycle Retailer and Industry News (BRAIN) magazine their parent company filed for bankruptcy on November 16th. Here’s more from BRAIN:

Patrick Cunnane, the CEO of ASE, said… the company was unable to turn around the retail business, which has seen sales declines for the last six years. “We were undercapitalized from the start.”

… “We tried to be more local and less national,” he said. Stores raised some retail prices to match the market and improve margins, and developed procedures to turn inventory better.

ASE was able to integrate the Performance and Nashbar back end systems and warehousing, but was unable to fully integrate the retail and wholesale back ends. “Sometimes you have to spend money to save money, and we didn’t have the money to invest to achieve the savings we wanted,” he said.”

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When BRAIN first reported the story, leaders of ASE made it seem like some of the stores would survive the re-organization.

But an email sent today from Gordon Brothers, a company hired to liquidate Performance’s inventory, made it clear that all the store will be closed.

“The Company has made the strategic decision to close all 102 Performance Bicycle stores,” the email says. “Today marks the first day of a major sale at all Performance locations.”

Discounts will start at 40 percent. And as they say, everything must go.

Beaverton resident Andy Kutansky will miss the Beaverton store. “The employees were always friendly and hosted shop rides on the weekends,” he shared with us in an email today. “Someone in the store said it had been open 30+ years or so! Today they seemed sad and I was sad with them.”

This news comes on the same day that the bicycle industry’s (once) largest annual trade show, Interbike, has called it quits.

— Jonathan Maus: (503) 706-8804, @jonathan_maus on Twitter and jonathan@bikeportland.org

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Johnny
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Johnny

Any news on the health of Nashbar? I got their catalogs in the mail as long as I can remember, but those seem to have come to a stop. And they hardly ever have those 25% off sales that used to be regular.

EPorter
Guest
EPorter

Sad to see them shutting down, but it won’t change a whole lot for me. I went to Home Depot at mall 205 and saw a guy swinging a sign for the Performance closing sale. So I stopped in. Seemed pretty normal still. 40% off signs are a bit misleading, most things are only 10 or 20% off as it’s “up to” 40% off.

David Hampsten
Guest

Bankruptcy in the US is kinda odd. What they actually announced is that everything from their inventory to their websites, brands, warehouses, and store leases are for sale by auction, but if they don’t get buyers (there’s a bike glut out there), then they’ll likely emerge from bankruptcy with far fewer stores, inventory written-off, renegotiated leases, and maybe one store per major market. The store manager here is waiting until late January to panic and lay off any staff. And yeah, stuff is on sale, but it’s the same every Christmas.

Did you see the follow-up story on BRAIN about the elections? It seems that ASE insiders, owners of Perf, ran and won Congressional seats in Pennsylvania. Very expensive that. Lots of campaign debt. Hmm, I wonder they got their money…

bikeninja
Guest
bikeninja

Lets face reality, the masses are broke, what little money they have is being extracted by rentier cartels ( high rents, out of whack mortages, cable companies, the sick care industrial complex, mandatory insurance, and student loans). Car sales have plunged 15-20% in the last quarter, while the real estate market has rolled over and is heading down. It is not suprising that the same thing is happening to bike sales.

David Hampsten
Guest

When did Perf close their shop at 17th & West Burnside?

Lauren
Guest
Lauren

This has been years in the making. Prior to being purchased by ASE, Performance was owned by an investment group that milked the company for every dollar it could before selling at an inflated price with other debts as well.

There were a number of cost-saving measures taken about two years ago to avoid going into bankruptcy, with varied success.

It’s too bad. I enjoyed working for Performance for four years, and finally quit when my rent went up to move back to Portland. I hope my coworkers are ok.

Modern American profit-gouging investment capitalism should be outlawed.

Timo
Guest

Very sad to hear of another bike shop gone.
I do want to make a slight correction – East Portland has one more bike shop, open Thursday, Friday and Saturday, located around the back of the Rosewood Initiative, 16126 SE Stark St.
It’s a partnership with another great non-profit, p:ear…
https://www.pearmentor.org/news/introducing-p-ear-bike-works

meh
Guest
meh

Can’t say I didn’t see it coming. Having worked for them as a store manager I can say they never took the brick and mortar side of things all that seriously. Not sure why they are closing the Beaverton store, it was their top location for the last two years.

Nice to see the comments in the BRAIN articles where the LBS’s are asking those losing their jobs to come apply.

Hop
Guest
Hop

I was an original employee and helped to open the Beaverton store back in ’93. Sad to see it go.

canuck
Guest
canuck

Was in the Beaverton store on Friday. The 40% off was on the banners but the best I saw was 20% off.

Looked like they weren’t honoring Team Performance and were pointing customers to the website.

Very hard to find the information on their website, just a red banner at the top stating “An important update for all Performance Bike customers” Here’s the link.

https://www.performancebike.com/shop/importantupdate

Here’s the specifics on Team Performance.

For Team Performance members:

• All current members’ accounts, and their points, will expire at the end of their current membership.
• New memberships, membership renewals and auto-renewals are suspended in all stores and online.
• All current Team Performance Members can redeem points online at PerformanceBike.com and over the phone at 1-800-727-2453.
• All current Team Performance Members can earn points on purchases made online at PerformanceBike.com.
• There will no longer be automatic 2nd Business Day shipping on member orders. Upgraded shipping remains available for an extra charge and online orders receive free shipping on orders of $49 or more.

Beth H
Guest
Beth H

Hate to be blunt, but:
1. A lot of folks saw this coming.

2. While I’m sorry for the workers, I’m also not really invested in the success of for-profit bicycle retail anymore. The industry continued for far too long to rely heavily on the trickle-down in design from racing, and to pursue a highly unsustainable business model of annual “upgrades” and “innovations” for decades.
There are thousands — maybe millions — of used bikes languishing in garages and attics across the country, and they can be fixed up and made rideable again. The bicycle industry leaders have been absolutely irresponsible, selling the idea of constant newness to buyers who want to own the latest and lightest stuff so they can ride it to and from work and be cool. As a buyer for a shop, I would repeatedly ask dealer reps and US distributors of parts why they couldn’t keep older parts in stock for a few more seasons so those older bikes could be made to work again. I was told repeatedly that I should focus less on sustainability and more on profitability, and that meant selling new bikes and parts instead of keeping “older technologies” going.

2a. I am THRILLED about the demise of Interbike. It was an obscene wasteland of excess and absurdity. Two visits to Interbike in Las Vegas were all I needed to know I could not buy into the steady growth business model anymore.

3. I derive great pleasure in saving old innertubes, patching and reusing them. I get a thrill out of straightening bend derailleur hangers, bringing bent wheels back to rideable trueness, and soaking seemingly rusted chains in non-petroleum solvent overnight to bring them back to life for a few hundred more miles. My bikes won’t win races, but that’s not their purpose, nor mine.

I still believe that bicycles used as transportation can help save us, if only more people would go back to getting their hands dirty and repairing what they own instead of rushing out to replace it so soon. It’s not just the bicycle industry that will take this tumble, but every retail stream that depends upon frequent consumerism.

The solutions are many and complex, but they all boil down to consuming less, repairing more and living far more simply than most of us are prepared to do right now.

Your mileage may vary, but only for awhile.
Rubber side down and happy riding!

Joshua
Guest
Joshua

Beth H
Hate to be blunt, but: 1. A lot of folks saw this coming.2. While I’m sorry for the workers, I’m also not really invested in the success of for-profit bicycle retail anymore. The industry continued for far too long to rely heavily on the trickle-down in design from racing, and to pursue a highly unsustainable business model of annual “upgrades” and “innovations” for decades. There are thousands — maybe millions — of used bikes languishing in garages and attics across the country, and they can be fixed up and made rideable again. The bicycle industry leaders have been absolutely irresponsible, selling the idea of constant newness to buyers who want to own the latest and lightest stuff so they can ride it to and from work and be cool. As a buyer for a shop, I would repeatedly ask dealer reps and US distributors of parts why they couldn’t keep older parts in stock for a few more seasons so those older bikes could be made to work again. I was told repeatedly that I should focus less on sustainability and more on profitability, and that meant selling new bikes and parts instead of keeping “older technologies” going.2a. I am THRILLED about the demise of Interbike. It was an obscene wasteland of excess and absurdity. Two visits to Interbike in Las Vegas were all I needed to know I could not buy into the steady growth business model anymore.3. I derive great pleasure in saving old innertubes, patching and reusing them. I get a thrill out of straightening bend derailleur hangers, bringing bent wheels back to rideable trueness, and soaking seemingly rusted chains in non-petroleum solvent overnight to bring them back to life for a few hundred more miles. My bikes won’t win races, but that’s not their purpose, nor mine.I still believe that bicycles used as transportation can help save us, if only more people would go back to getting their hands dirty and repairing what they own instead of rushing out to replace it so soon. It’s not just the bicycle industry that will take this tumble, but every retail stream that depends upon frequent consumerism.The solutions are many and complex, but they all boil down to consuming less, repairing more and living far more simply than most of us are prepared to do right now.Your mileage may vary, but only for awhile. Rubber side down and happy riding!Recommended 4

Well put. Greed is what killed Performance bike shop.

OldRider
Guest
OldRider

>>The closure leaves Portland with just one bike shop (Outer Rim Bicycles) east of I-205.

There are 2 within sight of I-205. BikeGallery on 82nd and REI at CTC , and there is (was ??) one at Clackamas Promenade (by Nordstrom Rack) . Also a pretty good one on 82nd , Clackamas Cycles . (across from Burger King)

Not quite as bleak as made out.

BikeJar
Guest

Sad news. Nashbar was popular item. their service was good. any update new about them?