Cycling in Sydney Australia
Hi, should preface that this query may be journalism-related.
But in the wake of those Cranks stores closing, I was wondering if there had been any other LBS locations that have closed recently?
Michael O'Reilly (Sydney Morning Herald)
(2017 update of title to "closed/opened" reflecting expanded topic of thread)
I think lots have closed, but quite a few have opened too! Reid cycles, Cell Bikes are doing well, Stallion in Redfern, and quite a lot more.
I don't know if this is the right place to post, but I received a letter stating Velosophy in Moore Park has been placed into administration on January 6th. They posted on Facebook saying they closed the shop…
Velosophy is a loss, good shop next to my workplace. They've saved my bacon a few times. Sorry to see them go.
I don`t know if Velosophy was replaced by The Lab Bikes at the same spot. I was at the entertainment quarter with BUG ride yesterday and saw this shop but was window shopped and didn`t enter inside.
Don`t know of when did The Lab Bikes opened.
Damn looks Hornsby is not trading properly either, they are only selling off existing stock. :(
At least that's whats said on their recorded message.
I noticed someone posted on Sydney Cyclist at one time promoting a Velosophy-run presentation night about an overseas tour they are flogging.
I think it's wise to share at this point as I would hate for anyone to lose money paying these guys for an overseas tour.
Velosophy have gone broke. I have heard they have taken down 6-8 significant distributors including Shimano who will take a major hit on some big debts which the store racked up with little attempt to pay. The director is apparently in the line of creditors…i.e., he;s claiming to be owing himself money...and the rest of the creditors behind him and other small companies who are owed money have almost no chance of recovering funds. Employees were let go and are owed entitlements.
Meanwhile, like a rising phoenix these guys are running a tour company?
This type of thing affects all bike shops, suppliers, employees and customers. Sorry if people are feeling sentimental about shops like this, but doesn't sound like they cared who got burned...
It's worth remembering that regardless of what kind of business we're talking about, there are so *many* more ways to run a business badly than there are to run it well. Most businesses that start up, fail in a relatively short amount of time. It's creative destruction at it's best.
Cranks Chatswood is still open.
A great guy called Paul still runs the shop in Chatswood. I was there last week. There were 2 Cranks shops, the other being in North Sydney. According to Paul, there were too many disputes with the co-owner and it was easier for him to close both shops for a period of time to settle the dispute. It's nice to see an independent store stocking a range of different brands. Service and advice is excellent.
Don't blame the distributors! They are not banks and nor should LBS be treating them as such.
Many small businesses that are in trouble start using their suppliers as a line of credit. This is a dangerous step and if it is not turned around quickly then suppliers can be left being owed a significant chunk of money.
After being charged $30 for crank bolts by a LBS the other day, I am starting to giggle with glee when I hear of more closures. (sorry for the bad mood, but $30 was far too much for 5 bolts)