St. LAURENT, Quebec (BRAIN) — High-end custom bike brand Guru Cycles Inc. has filed for bankruptcy in Montreal, listing liabilities of CA$1.1 million ($789,000). The company had told its dealers last month that it was restructuring following an expensive factory relocation last summer, coupled with a decrease in sales.
Last month, Guru owner Ted Matthews and vice president of sales Robert Pinazza declined to comment to BRAIN on the restructuring, which was announced in a letter to Guru retailers. They could not be reached on Monday.
Guru made the filing on Dec. 21. Court filings show Guru's major creditors include TD Bank ($370,000), Topkey China ($129,823), Ted Matthews ($88,854), Shimano Canada ($69,717), Dorel's Cycling Sports Group ($32,247), and Fibertek Composite ($23,093). Montreal's Litwin Boyadjian Inc. was named as the trustee.
In 2012, Guru sold its bike fitting technology and the Guru brand name to Dorel; Guru Cycles licenses the Guru brand back from Dorel.
Matthews led a group that invested in Guru in 2009, helping the company get out of difficult financial period triggered by the 2008 recession. Matthews served as the company's CEO until earlier this year when he became chairman of the board, while Lorenzo Salvaggio was named CEO.
