GT/Schwinn’s financial worries seemed finally to be over yesterday, after being bought out by Pacific, the owners of the Mongoose bike company, for a price of $86 million. Pacific outbid the American bike giant Huffy, owners of Airborne, amongst others brands. It took place during a tense and traumatic morning, as the courthouse where the auction was taking place had to be evacuated, along with other federal buildings, following the attacks on the World Trade Center and Pentagon.
The sale brings to a close an uncertain period for GT/Schwinn, following reports that suggested the company was in debt to the tune of $260 million.
The sale of Schwinn’s fitness division is yet to begin but Pacific are hoping to acquire this company as well and according to Byron Smith, president of Mongoose bicycles, the company is confident that they’re in a good position following yesterday’s events.