High-end custom bike brand Guru Cycles Inc. has filed for bankruptcy in Montreal, listing liabilities of CA$1.1 million ($789,000), Bicycleretailer.com reports. The company had told its dealers last month that it was restructuring following an expensive factory relocation last summer, coupled with a decrease in sales.
Last month, Guru owner Ted Matthews and vice president of sales Robert Pinazza declined to comment to BRAIN on the restructuring, which was announced in a letter to Guru retailers. They could not be reached on Monday.
Guru made the filing on Dec. 21. Court filings show Guru’s major creditors include TD Bank ($370,000), Topkey China ($129,823), Ted Matthews ($88,854), Shimano Canada ($69,717), Dorel’s Cycling Sports Group ($32,247), and Fibertek Composite ($23,093). Montreal’s Litwin Boyadjian Inc. was named as the trustee.
Read more: Bicycleretailer.com