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They may well settle debts like that.
Normally these debts are not repaid and the knock on effects on suppliers are often very negative. Unless Alpkit pay them soon it's safe to assume the debts won't get settled.
"Over the last few years, the cycling industry has developed an uncomfortable pattern. A brand enters administration or an insolvency process, then reappears with new investment, a new structure or a pre-pack sale. The headlines talk about jobs saved and a fresh start. The reality is that suppliers, partners and customers often absorb the losses. This is increasingly normalised. That is the problem."
That's what happens in property all the time - I know of someone locally who was a property developer, drove around an Aston Martin's, Ferrari's etc... his company would build some kind of tech house or hotel go bust & rise like a phoenix, never seemed to affect their finances or their ability to start a new business only to do the same again. He's done it at least 4 times to my knowledge.
owing £1k to the village football club, 3k to the local caterers, 10k to local councils etc.
Interesting, source?
how do they keep finding new people to supply / invest if they keep screwing over the last lot?
People have short memories or see the chance to get rich quick and are trusting.
how do they keep finding new people to supply / invest if they keep screwing over the last lot?
"We've learned the lessons from the last time (we took everyone's money and lost it all); we won't make the same mistakes again". Proceed to make same mistakes again because, critically, it's still the same people in charge.
Isn't this how we see some people get rich quick? They see an investment, jump on board, get lucky and hey presto... Sometimes it doesn't work out and the investors lose. 'We' encourage entrepreneurs by allowing mistakes to be wiped clean leaving a lot of people out of work/out of pocket/also bankrupt...
It's 'normal' practice. I wouldn't be investing in Alpkit as it looks like they're trying to do the same thing again and hoping for a different outcome. Yes, you can be unlucky with timing etc (Covid?) but this is more fundamental. Lots of expensive, largely empty shops (overhead), confusing offering and constant DFS sales indicate to me, nothing has really changed.
We'll see. I've bought a few bits n bobs over the years as they were like the good stuff they copied (70% of the quality?) But at 50% of the cost. On trivial things, it didn't matter. Now they’re vying for the top table and it's not for me.
That Lios Bikes founder's article is a very interesting read, and there's a lot to agree with. Certainly the bike industry press are absolutely craven in refusing to question the logic behind pre-pack company administration and sale processes; and the process itself is utter BS if it allows directors and the people driving one company to bankruptcy to immediately take charge of the new version of it. I thought bankruptcy law meant once declared bankrupt you weren't allowed to be a company director anyway...
But that's the crux of it - the piece itself is "guy who hasn't taken speculative investment to grow his business complains that those who have get judged by different rules". Like yeah, that's the same in every industry - I'm in the same position myself in a different industry. Really the system is designed by, and to protect, private equity/ venture capitalist/ investment fund type people through screwing over everyone else. See Brewdog (punks take the money and run, expand into retail, screw everyone); Alpkit (directors, perhaps well-meaning, expand into retail, screw everyone), and so on.
What's new?!
https://bikebiz.com/lios-bikes-founder-talks-administration-as-a-business-model-in-cycling/
I know some disagreed when I commented how disappointed I was in the behaviour of the owners and how this pre pack allows them to just dump on others (including small businesses and those who invested) but still just carry on as normal.
But if above comments are correct re sports club, local charities etc then I feel even more vindicated.
I certainly wont be buying from them again.
It's in the financial documents for everyone to read.
OK - but it may not mean non-payment in total / ever?
Debts cancelled by the administration process may still be paid as part of ongoing business relationships and negotiations - what people hear is about the debts written off, not any debts that are / will be settled. It'll be a rough time for some suppliers of course.
I don't say this in support of the process, just from knowing that it's not always a case of the new Co walking away from all old Co debts.
company would build some kind of tech house or hotel go bust & rise like a phoenix, never seemed to affect their finances or their ability to start a new business only to do the same again. He's done it at least 4 times to my knowledge.
At some point it should be possible to show intent or negligence and have them for it. 'Should be' as in morally or to protect other businesses, rather than whether the laws actually GAS about it. I suppose that's where credit insurance comes in and it's a case of big businesses can get by, small ones may not.
Well yes of course the "might" pay some of their debts but as the whole administration thing is based on the fact that they can't pay, they also "might" not.
Based on the fact one of the documents says they'll improve Alpkit 2.0 buy finding cheaper suppliers, I wouldn't be holding out hoping that I'm one of the cool kids that they'll only pay because they have to.
In reply to several, are you really out to punish everyone trying to start/run a business and makes a mistake?
Not easy to be perfect
It's not about perfection
There were red flags along the process and yet the company continues to behave the same.
The management of the company was and is not consistent with their warm fuzzy friendly ethos
In reply to several, are you really out to punish everyone trying to start/run a business and makes a mistake?
Not easy to be perfect
Equally, are you willing to accept that the owners of Alpkit have been able to retain all their own wealth and continue trading whilst allowing their suppliers who will include even smaller start ups and even local community groups to suffer and possibly go under?
Yes, mistakes happen but what they have done with this pre pack shows a complete lack of ethics which ironically is something they’d actually built their brand name with.
No one is perfect but this stinks.
I collected my Camino this lunch time, took a month, has a longer stem than ordered - they apparently have no 60mm stems still - so said stick a 70mm on and they will send out a 60mm if find 70 doesn't work when they come into stock.
So obviously ongoing supplier issues.
Equally, are you willing to accept that the owners of Alpkit have been able to retain all their own wealth and continue trading whilst allowing their suppliers who will include even smaller start ups and even local community groups to suffer and possibly go under?
Yes, it's the least worst option.