Stages Cycling Conducts Mass Layoffs Amid Market Downturn, Per Report
Indoor cycling brands face an uphill battle with demand for the modality slowing post-pandemic
Stages Cycling, an indoor and outdoor cycling brand that supplies some of the biggest brands in fitness, has reportedly laid off its staff last week and may soon cease operations as it contends with decreased demand, cash flow and supply chain issues.
Escape Collective first reported the situation, citing multiple sources close to the company that has supplied bikes to fitness leaders SoulCycle, David Lloyd and Equinox.
Although the Portland, Oregon-based company’s website is still available to peruse, most of Stages Cycling’s inventory, including power meters and bikes, appears to be out of stock.
Stages Cycling has had a turbulent ride since COVID, according to Escape Collective, painting a grim picture of shuttered fitness clubs, followed by a global shortage of microprocessor chips, which the cycling brand uses in its products. The company was soon grappling with low inventory at a time when demand for Peloton surged, leading to decreased cash flow and the inability to restock its inventory.
A handful of Stages Cycling executives have appeared to have transitioned from the troubled cycling company to new positions at high-end bike brand Giant Group, according to LinkedIn. It’s worth noting that Giant had once signaled its intentions to invest roughly $20 million in Stages Cycling before the deal fell through last year. AIPS, a subsidiary of Giant, filed a suit this February against Stages for unpaid invoices, outstanding orders and the cost of maintaining and storing goods.
It’s been a challenging year so far for fitness equipment makers. BowFlex, which filed for bankruptcy last month, just inked a deal to be acquired by Matrix parent Johnson Health Tech Retail.
Indoor cycling-related companies, in particular, have taken a hit. Zwift, an indoor cycling platform, conducted its second round of layoffs in 12 months and lost its co-CEO, who reportedly resigned earlier this year. Meanwhile, Peloton has struggled to find its identity post-pandemic following its major “more than a bike company” rebrand last year.
Stages Cycling didn’t immediately respond to Athletech News’ request for comment.
