| 08/21/2001 | Derby Files for BankruptcyAt Derby’s quarterly management meeting held in New York yesterday. Derby MDs from around the world met to hear the fate of the corporation that sold Sturmey Archer for £30.00 and which later fired the CEO who sanctioned the Sturmey deal while losing millions of dollars in dot.com ventures such as bikeshop.com and dolling up the corporate HQ in Delaware.
Chapter 11 bankruptcy was announced. This has been an option for the once great company since large drops in revenue last year.
Here’s the full Chapter 11 and proposed sale statement from Derby:
Kent, WA August 20, 2001: The Derby Cycle Corporation (“Derby”) today announced that it has reached an agreement to sell substantially all its worldwide operations to Cycle Bid Co. Cycle Bid Co is a corporation newly formed to facilitate a buyout by many of the existing members of management and shareholders of Derby and its subsidiaries. Simultaneously, Derby also announced that it had filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware, to effect the sale. Under the Bankruptcy Code other parties will have an opportunity to submit bids for the operations through a Court supervised competitive bidding process. During this time, Derby's businesses will continue uninterrupted and will continue to provide their customers with the same quality of service and products they expect.
The Chapter 11 filing will not have any impact on the operations in Canada, Germany, South Africa, the United Kingdom, elsewhere in Europe or Asia. These operations are not in bankruptcy and continue to trade normally.www.bikebiz.co.uk
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