Stages Cycling executives join Giant after suit and apparent shutdown

BOULDER, Colo. (BRAIN) — At least four former Stages Cycling executives have joined Giant Manufacturing as the power meter and smart bike brand has apparently stopped operations. Meanwhile Giant, which manufactures many Stages products in Taiwan, is suing Stages for about $14 million in unpaid invoices. 

Giant had announced last January that it had agreed to acquire a share in Stages for more than $20 million in cash and stock, but then announced weeks later that it had ended negotiations to buy the brand. In the January announcement, Giant said investing in Stages would "expand Giant Group's presence with the indoor cycling market and the investment also serves as part of Giant's strategy in building Giant's cycling ecosystem."

Related Articles

• January 2023: Giant agrees to buy share in Stages Cycling
• May 2023: Giant and Stages end negotiations
• June 2024: Giant makes bid to buy Stages from bankruptcy court
• August 2024: Court approves Giant's purchase of Stages

AIPS Technology, a Giant Manufacturing subsidiary, filed suit against Stages in Oregon on Feb. 12, alleging Stages had 161 unpaid invoices that had come due between June 2022 and January 2024. The invoices totaled NT$454 million ($13.9 million at today’s exchange rate) and are for power meters, exercise bikes, other products and parts, and storage and shipping fees. The complaint says that Giant also has produced and is storing products that Stages ordered valued at another NT$221 million.

Giant established AIPS (Advanced Intelligent Perpetual Solutions) in 2020 to develop and manufacture cycling technology including power meters. In its first year the subsidiary had NT$1.5 billion in revenue (about $46 million at the current exchange rate). 

Stages responded to the suit last week, denying the charges; the court has scheduled a telephone hearing for the case on May 17. 

According to sources familiar with the situation, Stages closed its Boulder office last week and laid off about 40-45 people. The Stages e-commerce site shows the business is out of stock for most or all of its products. Consumers can leave their email addresses to be notified when products come into stock. On Wednesday the only vehicle in the Stages parking lot in Boulder was a Stages-branded van; no one answered the door and there was a package left outside. 

It’s not clear how the situation affects Foundation Fitness, the Portland, Oregon-based company that launched Stages. Foundation sells stationary bikes and other products to commercial gyms and provides gym design services. Giant’s complaint against Stages also names Foundation as a defendant and indicates that Stages Cycling LLC remains a subsidiary of Foundation. Calls to the Foundation and Stages phone numbers this week were not answered. Stages and Foundation CEO Jim Liggett did not respond to a voicemail and an email from BRAIN.  

Pat Warner, most recently Stages’ senior vice president of product development, has joined Giant Manufacturing as vice president of product R&D. Paddy Murray, Stages' former VP of global marketing, is now Giant's VP of global sales and marketing. Stages engineers Eric Golesh and Andy Lull also have joined Giant.