Despite an increase in demand for bikes as a result of epidemic cabin fever, a local bike shop has closed and subsequently filed for bankruptcy.
The Foundation Bicycle, which opened at 2140 S. Delaware St. at the beginning of Evans Station Loft in 2019, filed for Sept. 7 Chapter 7 bankruptcy.
Chapter 7 Bankruptcy is usually a liquidation process, where a trustee is appointed to oversee the sale of the trustee’s assets.
The store said it owed পা 281,139 to 17 creditors, some of which secured claims. It has assets of $ 42,164.
Owner Christopher Clark has signed the filing on behalf of the business. He did not respond to a request for comment.
In its filing, Foundation Cycle said its revenue was .6 1.68 million in 2019 and .4 1.47 million in 2020.
The full-service bike shop, which calls itself the “Rider for Riders Started by Riders,” specializes in high-end paths, enduro and downhill mountain bikes, according to its website.
The red donors listed in the filing include Ohio-based Vast Bikes and California-based Troy Lee Designs, several alarm companies and its insurance companies.
Attorney Robertson Cohen, along with Denver-based Cohen and Cohen, is representing the company in bankruptcy proceedings.
Bike shops and manufacturers across the country are generally struggling to meet demand. According to CBS, sales increased by one percent from January 2020 to March 2020 and by one percent in the same period this year.