CARLSTADT, N.J. (BRAIN) — Velo Star is moving its operations from New Jersey to Oklahoma City this winter as it pivots to focus on sales and distribution of Italy’s Wilier Triestina bikes.
Velo Star is closing its parts and accessories distribution business, said owner Erik Deeter. He said Oklahoma offers a central distribution location and lower cost of doing business than New Jersey.
In 2015, Portland, Oregon-based Cyclone Bicycle Supply acquired New Jersey’s Action Bicycle USA and the combined companies began operating out of New Jersey under the Action name.
Deeter said the Action parts distribution business took a big hit when Shimano reduced its U.S. distributor count in 2013, followed by SRAM's similar cutback in 2015.
“That’s not a business that is sustainable without SRAM and Shimano,” he said.
Action has been selling off its remaining inventory this winter. Deeter said a small amount of inventory remains that will be sold off before the move to Oklahoma.
Velo Star began distributing Wilier in 2019; it’s now the exclusive North American distributor. The company will ship framesets to dealers from Oklahoma, while complete bikes will be drop-shipped from Italy to North American dealers.
He said Wilier will be operating from Oklahoma on March 1. Deeter also plans a Wilier retail showroom at its facility, which by coincidence is close to Vittoria North America’s warehouse in Oklahoma City. (Vittoria’s North American headquarters are in Bentonville, Arkansas.)
