A 13-year-old bike shop in Loveland has filed for Chapter 7 bankruptcy after closing in December.
Rocky Mountain Cyclery, which operated at 504 N. Garfield St. in Loveland, said in a Sept. 24 filing that it has $2,867 in assets and owes creditors at least $481,514.
Chapter 7 bankruptcies are typically a liquidation process, where a trustee is appointed to oversee a selloff of the debtor’s assets.
The bike shop’s Facebook page said it was founded in 2005 by Tom and Sarah Carroll. The shop closed in late December. It had revenue of $127,900 in 2018, down from $214,200 in 2017, according to the filing.
Co-founder Sarah Tanner, formerly Sarah Carroll, signed the filing. She could not be reached for comment.
The shop’s biggest creditor is Swiss bicycle manufacturer Scott, which is owed $239,660, according to the filing. Three other creditors are owed money for inventory, including $22,804 to Washington-based Full Speed Ahead and $17,873 to Minnesota-based Quality Bicycle Products.
The filing said the company has inventory, including bikes, parts and office equipment, that total an estimated $3,730, though it adds that, “It is expected that a sale would bring less than half of this value.”
The filing notes that the bike shop’s building at 504 N. Garfield Drive was sold to The Extra Mile Inc., which now operates The Extra Mile Outdoor Gear & Bike in the space. The buyer also purchased “used display racks, used storage racks and two bicycles owned by RMC” for $2,867, according to the filing.
The Extra Mile paid $385,000 for the property, according to public records. Sarah Tanner (then as Sarah Carroll) purchased the building in 2007 with Tom Carroll for $280,000, records show.
Tom Carroll died in January 2017, according to the bike shop’s Facebook page. Attorney Ross J. Wabeke, who’s representing the business in bankruptcy proceedings, said Tuesday that Tom Carroll’s death played a role in the bankruptcy filing.
“In my opinion, his death was absolutely the precipitating factor,” Wabeke said. “Sarah had tried to keep the business going and it just didn’t work.”