Spy Cycling, the branch of Giant Manufacturing which deals with indoor cycling, has made an offer to obtain the goods of Stages Cycling LLC and its related companies that filed for bankruptcy in June.
Stages Cycling, known for its power meters, smart trainers and GPS units, ceased operations in April 2024. At the time, another Giant division, AIPS TECHNOLOGY CO., LTD, had filed a lawsuit against Stages for $14 million in unpaid bills.
This subsidiary has submitted the so-called “purchase offer” (stalking horse bid), which is an initial offer on the assets of a bankrupt company, set by the company in consultation with its creditors. The purpose of this offer is to set a minimum acceptable bid, thereby preventing underbids and establishing a baseline value for the assets. The minimum bid is set at $21.5 million, which includes Spia’s $20 million offer, plus a fee for withdrawing the offer and a minimum of $500,000 for new offers.
Spia has reportedly paid a $2.51 million down payment to protect Stages’ assets during the bankruptcy and secure additional financing. His offer is currently the best the equipment company has received so far, and a deadline for submitting bids has been proposed for August 1, with a court hearing scheduled for July 15 to conclude the bidding process.
In early 2023, Giant’s board of directors approved a $20 million offer to acquire a third of Stages’ shares, but the deal fell through. Spia’s new offer would only buy Stages Cycling’s trademarks and patents in the cycling space, not the company’s commercial gym products, which are sold under the Foundation Fitness brand.
It is unclear whether Stages products will continue to be developed under the new ownership and whether existing products will receive post-sales support and service in the future.
