Cycletreads and Northern Accessories in Receivership

[Gremlin]

Came as a bit of a surprise, but both are in receivership

Cycletreads
Northern Accessories

Looks like Westpac wasn't happy: https://gazette.govt.nz/notice/id/2024-ar1254

I know people have mixed experiences, but I've been shopping there for almost two decades (bought tyres within the last month), and being able to roll up on a Saturday or Sunday, no appointment and get tyres changed was useful...

Of course, the odd person might have had more interesting dealings with the owner...

[SaferRides]

A bit sad to see them go - I expect the problems are more on the retail side than the tyre business. The website could be difficult to navigate and really needed an update.

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[neels]

The website could be difficult to navigate and really needed an update.

Definitely that, I was looking for slightly obscure tyres for an obscure bike and couldn't make any sense of what they did or didn't have available


It is however fair to say the experience was similarly vague at a couple of local bike shops too, so the one that was helpful and sensible to deal with will be where I go in future, I guess that's how some survive and some don't

[rambaldi]

Came as a bit of a surprise, but both are in receivership

Cycletreads
Northern Accessories

Looks like Westpac wasn't happy: https://gazette.govt.nz/notice/id/2024-ar1254

I know people have mixed experiences, but I've been shopping there for almost two decades (bought tyres within the last month), and being able to roll up on a Saturday or Sunday, no appointment and get tyres changed was useful...

Of course, the odd person might have had more interesting dealings with the owner...

Years ago, while waiting for some tyres I think, I ovearheard some staff talking about issues with paying suppliers. To me at the time, it sounded like they might be in strife but they obviously managed to keep going for quite a few years.

Sad to see them go, it was where I got my first set of gear and my usual for tyres.

[F5 Dave]

Geez that is a surprise been around as long as I can remember.
Northern did Diaenese Michelin Renthal, all sorts. Their Dirt and Road Booklets showed all the little tidbits they handled. Indeed a loss. Can only hope someone can prop them up to trade out. But that would probably be risky money.

[Grumph]

To me it shows how the local market is changing. i see and hear of a lot of people buying on line from overseas now.
They simply don't even look at the local wholesalers.
To an extent they're right to do so as in a lot of cases they're removing a layer of profit from the goods.

But it's never pleasant to see a firm go under.

[onearmedbandit]

How do you become a millionaire in motorcycle retail in NZ?

Start as a billionaire...

[SaferRides]

Geez that is a surprise been around as long as I can remember.
Northern did Diaenese Michelin Renthal, all sorts. Their Dirt and Road Booklets showed all the little tidbits they handled. Indeed a loss. Can only hope someone can prop them up to trade out. But that would probably be risky money.

This may have something to do with the Michelin supply issues. I heard it was due to a container not arriving in NZ but there could be more to it.


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[husaberg]

Neiher Cyclethreads nor Northern accessories normally don't appear in the products I search.
Oddly lately cycletreads have ibeen though n the last few months have started and were normally a few dollars under other competitors.
which in NZ nomaly are always the same price point.
Michelin slicks are a lot dearer than Metzlers and Pirelli. So I I assume they don't sell as much.
We try and buy only in NZ but some stuff like a lot of the moto-master fiddly bits are now is on 6 weeks wait ATM.
Torpedo 7 was also undercutting a lot of bike and push bike stuff a few years ago.

[HenryDorsetCase]

Torpedo 7 was also undercutting a lot of bike and push bike stuff a few years ago.

There are some fascinating stories about T7 when it first started - I heard they were cheap because they were buying whole bikes and stripping them and selling bits because they couldnt get stock and the importers were really pissed off by it. All that was was the founders maximising the profit and turnover so when they flicked it they cashed out with the maximum return. Yay Bretheren.

So obviously T7 is now insolvent and was sold last month for $1, with the buyers taking on all the bricks and mortar leases, and company debt. I heard that they intend to reposition themselves as an "outdoors" retailer and drop pushbikes altoghter, leaving the big box stores to fight to the death - Evo vs 99Bikes, and specialist/local retailers to fill in the gaps. Meanwhile I will try and buy secondhand or from wiggle or CRC.

I need a new motorbike helmet, but I am doing so little riding lately that I have parked that (like my bikes) until next spring. I will try and get in at least one more ride this summer but time has not been on my side. When I did try on a few helmets in local retailers I was very disappointed with the selection available. I am in Melbourne soon so will make the traditional pilgrimmage to Elizabeth Street....

[Gremlin]

This may have something to do with the Michelin supply issues. I heard it was due to a container not arriving in NZ but there could be more to it.

Depending on which story you heard, I heard:
- The canal shipping issue delayed it
- Something took the system down in Australia so the container couldn't leave
- Bills weren't paid, so no more goods for you

If Westpac pulled the line of credit, that can quickly make it difficult to trade. Places like dealers most likely don't own the cars on the lot (same with motorcycle dealers). Finance companies are extending credit, hence why stock needs to keep moving, then as you buy it, the PPSR hook needs to be quickly released, and so on. In residential building, Westpac has increasingly become more stringent with funding. They used to cover 60% odd, then it was 50% and you needed one signed contract, now I think they're not going over 40% of the build etc.

Some of the hidden stuff going on that consumers don't see...

[jellywrestler]

Geez that is a surprise been around as long as I can remember.
Northern did Diaenese Michelin Renthal, all sorts. Their Dirt and Road Booklets showed all the little tidbits they handled. Indeed a loss. Can only hope someone can prop them up to trade out. But that would probably be risky money.

dead right, i emember i went to ak the day after the rainbow warrior was interfered with and went to there, Caught up with Simon Crafar on the workshop too, I was trying to buy the Plastic Fantastic of ?Sean Walsh that day

[jellywrestler]

To me it shows how the local market is changing. i see and hear of a lot of people buying on line from overseas now.
They simply don't even look at the local wholesalers.
To an extent they're right to do so as in a lot of cases they're removing a layer of profit from the goods.

But it's never pleasant to see a firm go under.

the local bike shop here has 22 staff, and thriving in tiny premises, it's a shame somebody was asleep at the helm.

[release_the_bees]

It's sad, but also it doesn't really surprise me.

I first visited Cycletreads back in 2004, and the shelves were packed with different brands and sizes of clothing, helmets, gloves and accessories. It probably wasn't too many years after that it reached its peak, and every time since that I've been to their store, there's been a gradual reduction in selection options, especially in the typical person's sizes.




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[nzspokes]

So obviously T7 is now insolvent and was sold last month for $1, with the buyers taking on all the bricks and mortar leases, and company debt. I heard that they intend to reposition themselves as an "outdoors" retailer and drop pushbikes altoghter, leaving the big box stores to fight to the death - Evo vs 99Bikes, and specialist/local retailers to fill in the gaps. Meanwhile I will try and buy secondhand or from wiggle or CRC.

Whoever you heard that from was making up stories.

And Wiggle and CRC have both gone bust?