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Schwinn/GT woes could harm global bike trade - BikeBiz

Schwinn/GT woes could harm global bike trade

The US trade magazine, Bicycle Retailer, has obtained a full list of Schwinn/GT's 1500 creditors. Taiwanese suppliers are owed the most. The Schwinn/GT collapse could do a lot of harm to Taiwanese bike companies already suffering badly from a softening economy
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http://www.bicycleretailer.com reports that Schwinn/GT owes $30 million to Taiwanese bike companies, including $11m to Merida alone. All in all there are 1500 creditors.

Schwinn/GT owes its secured creditors - such as banks - more than $135m.

Attorneys for Schwinn/GT have just failed to secure leave for the company to make payments to cover warranty issues, as well as pay employees and reimburse them for

travel and medical expenses already in the pipeline.

This makes the future for Schwinn/GT extremely bleak, and could lead to the withdrawal of the Huffy bid.

Taiwanese bike companies will be hardest hit by the Schwinn/GT collapse and this will have a knock-on affect around the world as Taiwanese suppliers reign in outstanding debts and tighten up their credit procedures.

The Taiwanese economy in general is in the doldrums at the moment with a depressed stock market and jittery banks.

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