Exclusive Update From Stanton Bicycles: The Recovery Begins

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The news leaking out of a corner of the Peak District is true – Dan Stanton has successfully bought back control of Stanton Bikes (or Stanton Bicycles Ltd as the new business is officially called). There’ll be more detail to come and we’ll be chatting to Dan once he’s got a few things straightened out.

For now, Dan and the team have issued us a brief update over what’s been happening and say they’re very keen to get the full, transparent story out there. The administration was something that Dan never wanted to happen but became inevitable when the company’s long-standing financial backer had a change of heart. The business had managed to ride the Brexit/Covid rollercoaster and was in an optimistic, stock rich place but the sharp dip following the war in Ukraine prompted the investor to pull out in the hope of recovering money by dissolving the company or finding a buyer.

Different company name…same headbadge?

“After what has been a personally arduous and difficult period the news is that Dan Stanton was deemed to have the most suitable offer to take the business forward.’

They are busy behind the scenes getting everything in shape to get up and running again. The newly formed Stanton Bicycles (the ‘old’ Stanton Bikes ceased to exist once the administrator took over in November) will be a leaner, simpler operation initially just supplying frames. The product line-up will remain the same and the paintshop will still be creating all the custom finishes. However, there’ll be no in-house frame fabrication for now so, apart from existing UK-made stock, the offering will be the regular steel or titanium made by their long standing partners in Asia, prepped and finished as usual in the Derbyshire factory.

You’ll be able to buy through a completely new, more user-friendly, webstore that is currently under construction. The aim is to be open for business during w/c 13th Feb but Dan and his colleagues have asked everyone to please bear with them as they begin the process of coming back to life.

Stanton Switch9er Hannah
No more UK made bikes like this one for now!

Dan would like to place on record his sincere thanks to everyone, from customers to industry peers, for their support and encouragement during what has been an immensely tough time. 

“The outcome is more than I dared hoped for and I can’t wait to get back to doing what I love. This is a golden opportunity for a reset after a crazy few years, get our heads up and start looking down the trail with a whole new energy!”

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Dan’s got a pile of admin and housekeeping to get through before he can sit down with us for the full story, but in the meantime we asked him a couple of specific questions we know lots of people are asking: 

Will suppliers be out of pocket?

Our manufacturing suppliers – no. We are continuing with all existing arrangements both in the UK and abroad. Yes they are owed money but only in the context of the ebb and flow of supplying stock and we’re really pleased to have preserved the goodwill in these relationships.

Some creditors – yes. The only individuals ‘damaged’ by this are the directors – Me (Dan) and the outgoing investor. We’ve both taken a significant financial hit but for different reasons. Me because I want to stay, the investor because they wanted to go.

A couple of big operators (E.g. TNT and Paypal) have also lost out. Though we are also continuing to use them so they can’t be too upset about it either. Entities of that size seem to be used to this kind of thing.

Some customers remain out of pocket but we’re now in a position to fix that – detail below.

To be frank, the only creditor who really took a major hit was the outgoing investor. We worked together for a long time and it doesn’t make me happy to know they’ve basically written off a huge chunk of cash – but I didn’t choose this course of action. The administrators discovered that running an international bike-manufacturing operation and an e-commerce business isn’t quite as straightforward as some people seem to think it is! Over the course of the last couple of months we got to a point where they just understood the reality and actual value of what was here. The outcome is a sensible one in the circumstances and one that is by far the best for the integrity of Stanton Bicycles.

I’m also a pretty big creditor! But I’d rather have my company, in my hands, than press the panic button and try and recover previous loans to the business which were all part of trying to do the right thing – like the move to UK manufacturing for example. I’m here for the long-term and prepared to do the hard work that means Stanton Bicycles stands for something positive and supports not only me but others too.

What should anyone waiting for a bike or frame do?

I’d like to make it really clear that we will do everything possible to make sure no-one loses out and sincere apologies to those out there who’ve suffered the stress of trying to get an email or phone call answered by the administrator’s people when they were here. The administration process was not about having a fire sale and stiffing people – as is now evidenced by the outcome. There are two types of customer:

  1. Those who purchased from Stanton Bikes Ltd, just before we went into administration.
  2. Those who purchased from the company while it was run by the administrators.

We’re talking about a reassuringly small number of people but that doesn’t lessen the importance to us of sorting it out. Those in the first group can deal directly with Dan, contact us at Stanton if you don’t hear from us first (sorry, rather a lot going on!). Our plan with these unlucky few is to get them the product they want as soon as we are able. Our stock is still there so, depending on how complex the order was, we’re very confident we can come to a satisfactory arrangement with each person.

If you ordered from the administrator, PKF Smith Cooper, then you can claim a full refund from them. We will then very happily sell you a new frame at that price with all the lifetime warranty and support you’d expect.

While you’re here…

https://singletrackworld.com/wp-content/uploads/2018/12/interview-dan-stanton-build-buy-bikes/
https://singletrackworld.com/wp-content/uploads/2023/01/can-working-on-your-bike-void-the-warranty/
https://singletrackworld.com/wp-content/uploads/2023/01/tracking-the-health-of-the-bike-industry-in-2023/

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Hannah Dobson

Managing Editor

I came to Singletrack having decided there must be more to life than meetings. I like all bikes, but especially unusual ones. More than bikes, I like what bikes do. I think that they link people and places; that cycling creates a connection between us and our environment; bikes create communities; deliver freedom; bring joy; and improve fitness. They're environmentally friendly and create friendly environments. I try to write about all these things in the hope that others might discover the joy of bikes too.

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Home Forums Exclusive Update From Stanton Bicycles: The Recovery Begins

Viewing 14 posts - 81 through 94 (of 94 total)
  • Exclusive Update From Stanton Bicycles: The Recovery Begins
  • 1
    tomhoward
    Full Member

    Those that have lost out:

    An investor who knew the risks (or should have).
    Dan Stanton.
    PayPal and TNT/DHL who will have assessed the risks and planned for losses. And are continuing to trade with the new company. May not even have made a loss over the whole relationship.

    Anyone I’ve missed?

    the-muffin-man
    Full Member

    And new free account commenting straight on this thread? Hmmmm… 🤔🤔

    FB-ATB
    Full Member

    mbforlife- you’re either naive or trolling.

    “I read on another site that the company was insolvent. Seems a bit one sided, when Stanton has everything and the investor is left with nothing. Everyone knows you can’t trade when insolvent so the company had to go into administration”

    You don’t need to read on another site the company wasn’t solvent- it’s part of the reason the advisors were called in before the administration. Read the filings on Companies House.

    “Stanton has everything & the investor nothing?” Is that Stanton the company or Dan Stanton the individual? How do you know what their gains/losses are? Dan also had loaned money to the company and may have been owed wages too. His absolute loss may be lower but may have been a higher proportion of his net wealth.

    The investor was also a shareholder & director so therefore has a responsibility for the situation the company was in. The fact they had c£1m to invest shows that they must have some financial nouse (unless it was a lottery win) so can’t be a complete innocent

    oscillatewildly
    Free Member

    on the list of money owed on Companies house :

    Frey Bikes Ltd – Lincoln – £60,915.47
    Ora Engineering Co Ltd China – £121,695.55
    Heibei Hanglun Tech China – £120,502.98

    now unless im reading this wrong (if some one can verify), these 3 companies alone wont get this money back?

    i couldnt really care about the faceless paypal/water companies/banks owed money, but those 3 especially the british based company in lincoln, could be the difference of having to close down and make people redundant being owed that sort of money?

    if they’ve been paid back fair enough, but @tomhoward as i read it its not just paypal/tnt/dhl/ and a millionaire investeor who are losing out?

    again if im reading that listed wrong then happy to be told so

    tomhoward
    Full Member

    As I understand it, those are outstanding orders that the new company will take on in order to continue trading?

    dirkpitt74
    Full Member

    Who/What are Frey bikes?
    Google just seems to throw up some ebike stuff.
    Had Stanton started developing and ebike?
    Although looks like they need a CBT as they’re assisted to 28mph!!
    AM1000

    brant
    Free Member

    Had Stanton started developing and ebike?

    Yes* – as detailed in section 2.1 of Administrators Notice of deemed approval of proposals on Companies House site.

    *And as any right thinking bicycle company would do in the current climate.

    dangeourbrain
    Free Member

    *And as any right thinking bicycle company would do in the current climate.

    Look, there’s been some mud thrown on this thread but that takes the biscuit!

    ziggy
    Free Member

    Whilst I was Stanton all the best I’m not convinced the the company will survive long term, more than half of companies who enter administration don’t survive.
    If you haven’t been able to make money from bikes in the last few years you never will, bike sales are now dropping off a cliff.
    My day job is for a small UK bike company and yes it’s been difficult dealing with supply chains and of course Brexit but you have to make hay while the sun shines.
    As they say in this industry if you want to make a million you need to start with 2 million.

    thisisnotaspoon
    Free Member

    If you haven’t been able to make money from bikes in the last few years you never will, bike sales are now dropping off a cliff.

    Didn’t ST copy and paste a Trends/Halfords statement that said exactly the opposite.

    They couldn’t get cheap bikes on the shop floor quickly enough the last few years, but high end stuff was a completely different matter. And obviously Stanton are even higher end and don’t have an Apollo/Carrera lineup to offset the Boardman/Voodoo ranges.

    BillOddie
    Full Member

    Just had an email from Stanton (I’m on their mailing list) they are selling Ti frames at the bargain price of 1899quid rather than 2200…

    This offer will run for two weeks only as we cover our February overheads. These frames will be created to order and shipped within 5-7 days.”

    hmmmm

    reeksy
    Full Member

    Who/What are Frey bikes?

    Stanton use/d a fabricator in Lincoln to make the chainstay/seat tube yokes. Could be a big batch of them that they’ll be needing (and nobody else can use).

    footflaps
    Full Member

    Investor should be looking out for themselves. As has been said loads of times already you don’t invest million+ and take your eye of the ball.

    You’ve never dealt with VCs, they barely remember what the company is called, let alone what it actually does.

    Every board meeting just repeated exactly the same things we talked about at the last meeting – it was just like Groundhog day, only spread out more…

    Only cost them north of $100m when we folded…

    cx_monkey
    Full Member

    Frey Bikes is owned by the chap that owned the company in Taiwan that Stanton used to use to source frames. Frey Bikes Ltd doesn’t and hasn’t ever existed as a UK entity. Which is odd…

Viewing 14 posts - 81 through 94 (of 94 total)

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