March 14/11 20:58 pm - RaceFace Update
Posted by Editor on 03/14/11
Canadian component manufacturer RaceFace has shut its doors, with Grant Thornton Ltd. appointed as receiver over the weekend. There is nothing on the RaceFace website, but a letter was presented to all employees, stating that employment was terminated.
The letter read (in part): "...As the receiver will be shutting down the operations of Race Face Components Inc. immediately, your continued employment is no longer required and, therefore, the receiver on behalf of Race Face Components Inc., hereby terminates your employment, effectively immediately..."
Grant Thornton would not comment on the matter. The RaceFace Facebook page has a discussion titled 'RaceFace Shutdown', but the discussion board has been disabled. The RaceFace Twitter page has not been updated since March 5th.
The Receiver has the option of selling the company in its entirety, or liquidating assets to pay outstanding creditors. It could potentially see the name sold (as happened with Syncros, now owned by Ritchey).
RaceFace has seen a steady decline in the number of bike brands which spec'd its cranks, handlebars and stems, and lost Canadian distribution with Cycles Lambert around the time it decided to sell through the Mountain Equipment Coop (MEC) chain; a decision which cost it sales in many Independent Bicycle Dealers (IBDs).