One of mountain biking’s ‘household names’ suspension originator Rock Shox is reportedly desperate for a quick cash fix to keep it afloat.
According to US trade site Bicycleretailer.com Rock Shox is in violation of covenants on a $4.1 million loan from Wells Fargo Bank. If the company exerts it’s right to ask for it’s cash back immediately then Rock Shox wouldn’t have the funds to continue operating.
Rock Shox blame a sales downturn -24.5% in the last 9 months of 2001- on decreasing bike sales and the problems with Schwinn / GT who were one of Rock Shox biggest customers. These problems come after a very expensive recall problem with Far Eastern manufactured forks.
Hopefully someone will come up with a buy out or loan of at least the $2,000,000 required as in terms of product 2002 was looking like one of their best years for a while, with SID, Psylo and Duke all working well.