Despite rising demand for bikes as a result of pandemic cabin fever, a local bike shop has closed and subsequently filed for 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 Sept. 7.
Chapter 7 bankruptcies are typically a liquidation process, where a trustee is appointed to oversee a selloff of the debtor’s assets.
The shop said it owes $281,139 to 17 creditors, some of which have secured claims, according to filings. It has assets worth $42,164.
Owner Christopher Clark signed the filings on behalf of the business. 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 Sept. 7 filing date, the company’s 2021 revenue was $20,577.
The full-service bike shop, which dubbed itself as a “shop started by riders, for riders,” specialized in high-end trail, enduro and downhill mountain bikes, according to its website.
Creditors listed in the filing included vendors such as Ohio-based Vaast Bikes and California-based Troy Lee Designs, a couple of alarm companies and its insurance company.
Attorney Robertson Cohen with Denver-based Cohen & Cohen is representing the company in bankruptcy proceedings.
Bike shops and manufacturers around the country have generally been struggling to keep up with demand. Sales rose 38 percent from January 2020 to March 2020 and 78 percent during the same period this year, according to CBS.