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I’m not an accountant either, but I believe there is a hierarchy of creditors.
There is, but that's not the same thing as administration with a view to selling the business as a going concern.
That hierarchy of creditors kicks in when doors close.
At present it'll be the suppliers (and potentially staff) getting the short end, so rent reduction, pay you 90p in the pound on our orders, asking the bank to reduce interest or renegotiate the term of loans etc etc in order to try keep the business turning over money and trading its way out of administration and paying them back in the longer term.
Currently it'll pretty much be a reverse of that hierarchy you mentioned, the only person they won't be asking for help is the VAT man, beyond that tax right offs etc will all be at the top of the pile to look at as ways of reducing the debt.
"administration" covers a few different things but the general perception is always the worst one.
Dan has posted on Facebook just now an explanation of the situation. Basically, orders will be completed, looking for a new owner.
… if it was a brewery we’d be crowd funding it by now
… if it was a brewery we’d be crowd funding it by now
if the STW hive mind owned a bike brand...
if the STW hive mind owned a bike brand…
I'm in
if the STW hive mind owned a bike brand…
Seriously, we'd end up with a high pivot, idler, gearbox, single speed with 26" wheels, 20mm through axle front and 135mm qr rear, a 200mm front and rear travel and built to a target weight of 24lb.
high pivot, idler, gearbox, single speed with 26″ wheels, 20mm through axle front and 135mm qr rear, a 200mm front and rear travel and built to a target weight of 24lb.
I'm in!
The moderation on here is a bit poo lately tbh, threads just get closed with no explanation
I understand their desire to drive more traffic to their news content, but they’re making it look clumsy and opportunistic.
I reckon we can probably get over it though, given that they do have to (continue to) make a living too.
I do wonder though if the actual thought is as completely daft as it sounds of a Go Fund Me type page to keep them running, not the high idler SS/Hybrid/Gravel thing.
Would it be completely stupid ?
Would it be completely stupid ?
Without a good look at the company accounts - yes.
STW crowd funded bike models include: The Badger, Sudocreme Cat and Picolax. All come equiped with Marzzochi Bombers as standard.
All come equiped with Marzzochi Bombers as standard.
Unless it was bought for your brother in law, then it can't be owned with bombers.
Without a good look at the company accounts – yes.
The company appears to owe a load of money to Dan and some other chap called robert Atkinson - £800k ish in total from the last accounts. This seems to rise each year due to losses.
Dans loan was interest free but roberts loan (720k) was interest bearing so I suspect he’s the external investor who has called time on it. Maybe doesn’t want to put more money in?
The Picolax would be a gravel bike, but we could market it as a new skool 'pebble dash' bike.
Is the Baby Robin a DJ or kids’ bike?
I suspect he’s the external investor who has called time on it
Q: How do you make a small fortune in the bike industry?
A: Invest a large fortune!
With regard to the moderation/ thread locking, a comment stating that a new article had been posted would have saved me a few minutes of wondering what was going on.
Didn't a German forum kind of do that? Design & build a bike, not fine tune forum moderation.
Seriously, we’d end up with a high pivot, idler, gearbox, single speed with 26″ wheels, 20mm through axle front and 135mm qr rear, a 200mm front and rear travel and built to a target weight of 24lb.
Yes! Exactly what I'm after (a singlespeed gearbox for extra extra nicheness).
Not sure if I've got 800k myself, let me just check the price of bitcoin...
Ooooh, I’d be interested in a bike that came with an inline auto-Plutoliner.
Erm, the Frozen Wax Sausage?
That's the wurst idea yet.
Oh, I dunno, sounds like a right banger to me.
26″ wheels, 20mm through axle front and 135mm qr rear
You just described so many of my bikes. That I still own.
What's the problem with any of those BTW? Or did marketing do it's job 🙄
What’s the problem with any of those BTW? Or did marketing do it’s job 🙄
Any one of the things in that list? Nothing particularly. Everything on that list all together? Yeah quite a lot.
That being said though the things in that list are mostly old hat which does bring problems and difficulties and certainly means developing or buying new of them now would be daft.
Eg the dinky snippet you posted leaves very little choice of good tyres, good forks*, or wheels in the modern age, that's not marketing its just reality. Same as I don't fit the much better** clothes I had years ago but they'd still be perfectly functional as clothes.
*though I'm not sure if dh forks do tend to run 20mm axles still or not.
**I may think otherwise if they still fit, I mean that turtles jumper was bloody awesome when I was little, now, maybe it wouldn't be so good.
Dan posted the following on Facebook.
It's been alluded to above but worth repeating here:
"our collective aim is trying to make sure that the handful of customers who have frames boxed up are ready to get their frames as fast as possible. We are currently in the process of having these shipped which is great news, and we are just waiting on new trading accounts being opened with the suppliers to achieve this.
As regards the 8 customers waiting on bikes, we are working hard to find a solution to get their new trail weapons shipped too, and we will provide an update on this situation in due course."
----------
In full:
Dear friends
11 years ago, Stanton Bikes became a business built on the popularity of the first frame I ever made. It wouldn’t have happened without the faith and support shown by others in what I do, people who love the culture of MTB as much as I do. I appreciate it now as much as I did when I first started.
So, now I find myself in the heartbreaking situation of seeing the business I built falling into Administration, and I want to be as open as I can with everyone.
Like many businesses who want to grow, particularly in manufacturing, we rely on financial backing. The last 2 years have obviously been extremely difficult to navigate, and the exposure to severely unpredictable market forces has tested us to the limit. We now find ourselves in an unfortunate situation where our backers are looking to minimise their portfolio exposure. Meaning that we need to look for a new source of investment, and that’s the task that the Administrators have been brought in to achieve.
As things stand, Stanton Bikes Ltd is now under the control of the Administrators and our collective aim is trying to make sure that the handful of customers who have frames boxed up are ready to get their frames as fast as possible. We are currently in the process of having these shipped which is great news, and we are just waiting on new trading accounts being opened with the suppliers to achieve this.
As regards the 8 customers waiting on bikes, we are working hard to find a solution to get their new trail weapons shipped too, and we will provide an update on this situation in due course.
Goodwill and trust are hard earned, and it would be the worst outcome for me and the staff to see that damaged, and that’s why we are all working collectively to try and save this business and protect our customers and our brand. It’s clearly taking time to put new processes into place, but we are confident we can save this business, and continue to build premium bikes and frames for our loyal customers.
We understand there will be many questions and worries, and we will do our very best to answer them. Thank you to everyone who has been in touch with messages of support, it keeps us going and lets us know that you’re there for us whatever the outcome. What binds us here are our customers, and the wider MTB community, and together is our love and passion for the scene.
Keep the faith
Dan's bounced back.
Dan’s bounced back.
Elaborate ?
Dan’s bounced back.
...moved into the trouser business? Stanton Strides? 🙂
Might take him a while to get up and running though, coming out of administration is always a protracted process esp if you need to open trade accounts with the same suppliers who just lost money from the same company. You get shit payment terms (understandably) and that makes your cash flow much worse from day 1, which also make it more likely you fail second time around....
which also make it more likely you fail second time around
And without wanting to be negative, why did they go bust in the first place and what will be fixed?
Had they just been spending more than they were making?
Invested too much in full-sus development and didn't sell any?
Production/management problems a while ago? (I have a vague memory of unhappy customers)
why did they go bust in the first place and what will be fixed?
Probably Covid supply chain issues which would stretch any cash flow to breaking point.....
My current company (Telco) is in the same situation, we make money by selling Telecoms kit and we can't buy the chips to make anything, so we can't sell anything which means no revenue. Yet we have salaries to pay. We've survived by importing scrap kit from Africa and having people individually de-solder key components off the boards, which we can then re-use! We have orders we simply can't fulfill as we still can't access key components...
Best of luck Dan and the rest of the Stanton bikes crew.
Great bikes that ride extraordinarily well.
Looks like a deal is done. Hope this works well.
So, Stanton bikes owned by Dan Stanton, has closed, but Stanton Bicycles owned by Daniel Stanton has bought the company?
You are mixing up Daniel Stanton, director of ‘Stanton Bicycles Ltd’ and ‘Fire House Design Ltd’
With Daniel Stanton, director of ‘Stanton Bikes Ltd’
Easily done
Fair enough. 👍
You are mixing up Daniel Stanton, director of ‘Stanton Bicycles Ltd'...With Daniel Stanton, director of ‘Stanton Bikes Ltd’
It's the same person, obviously. Look at the DoB. Companies House doesn't always consolidate multiple directorships of the same person. I don't know why...
....unless I am missing the joke
You’re missing the joke.
Where joke = the morally wonderful system where someone is allowed to shutter a business owing truckloads of money to creditors and then start up a ‘different’ company without paying back what they owe.
Like a phoenix from the flames…
Reminds me of a shop in town called Marble, Granite and Fire. Went bust and popped back up a couple of weeks later as Marble, Granite and Stove.
A creditor parked a car in the carpark opposite with big signs in the windows relating to the situation.
The 'new' business also went pop not long after.
Stanton may be totally different, without knowing details. I've also spoke to guys who went bust due to the bank pulling the rug at the perfect time to ruin the (viable) business.
timmmys nailed it. Same person, almost the same company name and one or more suckers didn’t get their bills paid. Creditor beware
One less director now. Maybe that's where all the cash went.
I’ve also spoke to guys who went bust due to the bank pulling the rug at the perfect time to ruin the (viable) business
RBS had a bit of a scandal in that area