After about 18 years in business, Race Face component manufacturer has been abruptly shut down by bankers.
According to Bicycle Retailer and Industry News, the New Westminster, British Columbia-based compay was put under control the control of a receiver on Saturday, with the company subsequently shuttered. The receiver, Grant Thorton Limited, reportedly terminated all Race Face employees at the New Westminster factory, and at its operations in Taiwan, according to Bicycle Retailer. Grant Thorton Limited has been appointed to run the company for the benefit of Race Face’s creditors.
Apparently the banks began running the company about a month ago. At the time payroll payments were current, although many of the employees hadn’t been reimbursed for traveling expenses and company payments into the Canadian healthcare system were behind.
Race Face officials met with creditors and its receiver March 14, reported Bicycle Retailer,. Officials at Grant Thorton said they intend to dispose of Race Face as a single entity and may rehire back some essential employees to assist in the sale of the company.
Race Face’s fate is similar to that of Titus Bicycles, which went out of business late in 2010. The company was then purchased by Planet X, an Internet bicycle retailer based in the United Kingdom.