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1. When? Preliminary Bid Deadline is November 30th. Auction Date is December 13th.

2. What? All or substantially all of the assets of Cycle Force Group LLC (“Cycle Force”), as a going concern.

3. Where? The sale is taking place under Bankruptcy Code §363, Cycle Force’s chapter 11 case, pending in front of the Honorable Anita L. Shodeen, in U.S. Bankruptcy Court for the Southern District of Iowa, Case number 21-00571-als11

4. Who? All inquiries should be directed to the company’s investment banker, Ravinia Capital LLC. Linked here is additional information about Cycle Force. Linked here is a confidentiality agreement. You may sign and email the confidentiality agreement to Ravinia Capital to receive additional information, or you may contact Ravinia Capital to discuss the opportunity generally prior to agreeing to appropriate confidentiality obligations (contact information below).

5. Company Summary.

  1. Cycle Force, based in Ames, Iowa, is an importer and distributor of bicycles, parts, and accessories with sales into multi-channels throughout North America of around $17 million, before being impacted by increased tariffs, COVID-19, and the global shipping crisis.
  2. Cycle Force, through Ravinia Capital, is seeking bidders to purchase the assets and continue operations as a going concern. Bidders in this process will be able to obtain not only Cycle Force’s accounts receivable, inventory, and equipment (with projected book values as of EoY 2021 of $1,601,930, $734,648, and $274,611, respectively) but also its extensive network of existing relationships and many promising potential growth opportunities, all without having to assume any liabilities.
  3. Cycle Force serves as a turnkey gateway to and foothold within the United States for international bicycle manufacturers, providing them access to assembly services, drop shipping, and distribution through online marketplaces, big box stores and independent bike dealers (“IBDs”).
  4. CFG’s products range from exclusively licensed high-end bicycles to budget bikes to value-line budget bikes. Additionally, Cycle Force is growing its e-bike business and can serve as a launching pad for further penetration into this hot, investor-favored segment.
  5. CFG strategically markets its premium brands to IBDs, while entry-level offerings are primarily sold through its eCommerce partner, Amazon, as well as its retail partners, Walmart, Target, and Kohl’s.
  6. This sale provides buyers who are willing to act quickly and decisively with a unique opportunity to acquire a fully operational platform possessing strong, positive, brand-name recognition within a rapidly growing industry.

6. Sale Procedures. Linked here is a summary of the sale procedures; here is an executive summary of relevant dates:

  1. Preliminary Bid Deadline: November 30, 2021
  2. Qualified Bid Announcement Deadline: December 8, 2021
  3. Announcement of Baseline Bid: December 10, 2021
  4. Auction: December 13, 2021
  5. Bid Deposit: $5,000
  6. Initial Minimum Overbid Amount (no Stalking Horse): $100,000
  7. Initial Minimum Overbid Amount (Stalking Horse scenario): $200,000
  8. Bid Increment: $100,000

7. More Information. Contact Tom Goldblatt ([email protected] or 312.316.4641) or Michael Shanahan ([email protected] or 847.507.9775) of Ravinia Capital.

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