Despite the growing demand for bicycles due to the pandemic cabin fever, a local bicycle shop closed and subsequently file bankruptcy.
Foundation Cycles, which opened at 2140 S. Delaware St. at the base of Evans Station Lofts in 2019, filed for Chapter 7 bankruptcy on September 7.
Chapter 7 bankruptcies are typically a liquidation process, where a trustee is appointed to oversee a sale of the debtor’s assets.
The store said it owed 17 creditors $ 281,139, some of whom have secured claims, according to the documents filed. She owns assets worth $ 42,164.
Owner Christopher Clark signed the documents on behalf of the company. He did not respond to a request for comment.
In its filing, Foundation Cycles said it had revenue of $ 1.68 million in 2019 and $ 1.47 million in 2020. As of the September 7 filing date, revenue from the company in 2021 was $ 20,577.
The full-service bike shop, which has dubbed itself a “shop made by riders, for riders,” specializes in high-end trail, enduro and downhill bikes, according to its website .
Creditors listed in the case included vendors such as Ohio-based Vaast Bikes and California-based Troy Lee Designs, a few alarm companies and his insurance company.
Denver-based Cohen & Cohen attorney Robertson Cohen represents the company in bankruptcy proceedings.
Bicycle shops and bicycle manufacturers across the country are generally struggling to keep up with demand. Sales increased 38% from January 2020 to March 2020 and 78% during the same period this year, according to CBS.