Stages Cycling Assets Purchased By SPIA Group, Giant

Earlier this year, the lights went out at Stages, makers of power meters, head units, and indoor bikes for both the consumer and commercial markets. The brand helped bring power based training to the masses, along with making some of the most popular commercial bikes on the market through the Stages Indoor Cycling brand, but the parent company, Foundation Fitness, LLC, filed Chapter 11 protection on June 22, after falling behind on debts due to their suppliers. The brand has found a new home with the approval of a purchase agreement that will bring the US brand into the SPIA Group, which is part of the larger Giant Group, makers of Giant and Liv bicycles.

At the time of bankruptcy filings, AIPS Technology Co., LTD, another division of Giant, claimed Stages owed approximately $14 million USD for production work completed, going as far back as June 2022. This includes their SB20 indoor bike and SC line of commercial indoor bikes used at fitness studios and gyms around the world.

Going as far back as January 2023, Giant had made intentions known that they were interested in investing in Stages. Their board had agreed to a $20 million USD investment into Stages, which would equate to a 32.5% stake in the Boulder, Colorado brand. Giant was using the investment to increase the brand’s presence in the indoor cycling market and building on the brand’s cycling ecosystem. On May 10th, the Taiwan based brad announced they were unable to come to an agreement with and ended negotiations.

Along with crank based power meters, Stages also sold their cyclo-computers and SB20 indoor training bike. On the commercial side, they sold their line of SC commercial studio bikes, along with bikes branded for SoulCycle and Les Mills that included attached screens for consumer usage at home, based on the SC platform. Foundation Fitness sold a line of fitness equipment on the commercial side. Stages also have their StageFlight software for use in studios and offered certifications for instructors for various formats of cycling focused group fitness classes, purchased from VismoX AS in 2017.

Consumers might have noticed it was getting harder and harder to purchase products from Stages later in 2023 and into 2024, with no timelines being given on when products would be available. Rumors began to swirl about Stages closing with some of Stages top executives leaving to join Giant as early as April 2024. Their headquarters closed mid-April 2024, laying of 40 or so people.

While the bankruptcy proceedings were filed separately for Foundation Fitness LLC, Stages Cycling LLC, Stages Indoor Home LLC, and Stages Ride LLC, they were all brought together for administration since they all share the same management and ownership. Foundation Fitness’s Chapter 11 filing included secure debt of $20 million USD, with about another $12 million USD unsecured to companies like Life Time Group Holdings, Les Mills International, and Cycling Sports Group.

As bankruptcy proceedings commenced, SPIA set an initial bid for the Stages Cycling brand at $20 million USD. That meant any additional bidders would need to submit a competing bid of at least $21.5 million to cover their bid, a break-up fee, and a $500,000 minimum overbid charge. The final deadline to bid was August 1st, but was extended as proceedings went on. No other bidders were found, and the court agreed to move forward with SPIA’s offer.

The purchase of Stages Cycling by SPIA is for the intellectual property, manufacturing facilities, product lines, and inventory that remained, including inventory that was being held until payment was remitted.

“We are thrilled to integrate Stages Cycling’s assets into our organization,” Donald Yu, the president of SPIA Cycling Inc. said in a press release from Giant Group. “This acquisition aligns with our strategic goals and enhances our capabilities in both indoor and outdoor cycling. We are committed to leveraging these assets to drive innovation and deliver greater value to our customers and stakeholders.”

While it is not completely clear if the Stages Indoor Home assets are included in the sale, the press release from Giant seems to infer that the SC line of commercial bikes are potentially included in the assets acquired, bringing them from an OEM to an active brand. This will widen their portfolio to add power meters as original equipment on their bikes and the potential to expand the GPS computers they offer, along with an indoor training product and commercial gym equipment.

www.stagescycling.com