Cannondale's president, Joe Montgomery, met with attorneys in January to re-organize under Chapter 11. The US Bankruptcy court will put the company up for auction on March 20th, 2003. As part of the plan, Cannondale will sell it's assets to Pegasus, who will provide debtor in possesion financing to cover operating expenses until the company is sold at auction. The cause of the bankruptcy is reputed to be the unsuccesful expansion of the company into motorcycles and ATV's. Most dealers will provide customer service and support for their customers, and it is not yet clear who will acquire the company. Hopefully, the bike division, which was always succesfull, will continue to operate under the company founder, Joe Montgomery, but all this remains to be seen... |
