SAN MARCOS, Calif. (BRAIN) — Almost three years after the brand filed for Chapter 11 bankruptcy, Eminent Cycles' remaining frames, bikes and parts are being auctioned this month.
Eminent's initial Chapter 11 filing showed debts of $1.4 million and assets of $139,000. At the time the company said it planned to continue operating and servicing customers during a reorganization.
Fischer Auction Co. Inc. is listing about 400 lots available in an online auction starting Jan. 17. The lots include individual bikes, frames and crates containing multiple Fox suspension parts. An auction preview will be held Jan. 16 at the Eminent headquarters in San Marcos.
In a December 2023 filing with the Bankruptcy Court for Southern California, Eminent Cycles owner Jeff Soncrant said that since the bankruptcy initial filing he has invested more than $300,000 in the company and worked without salary for two and a half years. He said Eminent sales grew rapidly during the COVID-19 pandemic but then the company was unable to obtain additional inventory for several months due to supply chain challenges. Later, Eminent was challenged by tariffs on China-made frames and high shipping costs that resulted in higher pricing. He said factories also prioritized orders from larger brands during this period.
"However, because there were back orders from customers, it provided Eminent confidence that business growth would increase," he said of the 2022 scenario.
When inventory began arriving in June 2022, more than half of customers canceled their orders, he said in the filing. By early 2023, he said, "there was no demand for bikes."
In the filing, Soncrant estimated that the net value of the remaining inventory to be auctioned is $133,000 after liquidation costs.
Soncrant also filed a motion to dismiss the bankruptcy case, with a hearing on that motion planned for 2 p.m. on Jan. 17. The motion said that in the best case, about $16,000 in cash will remain after liquidation proceeds are used to pay off a secured claim by Stella Mondo, LLC. Stella Mondo is a San Diego company formed by Kevin Sigismondo, an industry veteran whose LinkedIn profile says was a founder of Eminent and of Valiant Components.
The motion said that the bankrutpcy trustee fees have already been paid and Eminent does not expect there to be any money left for unsecured creditors.
More information on the auction: proxibid.com.
