Spia Cycling, Giant Manufacturing's indoor cycling subsidiary, has made a bid to obtain the assets of Stages Cycling LLC and its related companies that filed for bankruptcy in June.
Stages Cycling, known for its power meters, smart stationary bikes, and GPS units, stopped operations in April 2024. At the time, another Giant division, AIPS TECHNOLOGY CO., LTD, filed a suit against Stages for $14 million in unpaid bills. In the shake-up, four prominent Stages Cycling team members joined Giant, in part to spearhead the launching of Spia, Inc.
This subsidiary has now made what is called a 'stalking horse bid,' which is an initial bid on the assets of a bankrupt company, set by the bankrupt company itself in consultation with its creditors. The purpose of this bid is to set a minimum acceptable offer, thereby preventing low-ball offers and establishing a baseline value for the assets.
Bicycle Retailer reports that the company filed a proposed Asset Purchase Agreement last Friday, setting a minimum competing bid at $21.5 million, which includes matching Spia's $20 million stalking horse bid, plus a break-up fee and a $500,000 minimum overbid charge.
Spia has reportedly made a $2.51 million down payment to protect Stages' assets during bankruptcy and secure additional financing. Its offer is currently the best bid the equipment company has received thus far and a final bid deadline has been suggested for August 1, with a court meeting on July 15 to finalise the bidding process.
Stages Cycling was founded in 2009 by Jim and Scott Liggett and owned by parent company Foundation Fitness LLC. Through the 2010s, the brand gained traction due to its crank-based power meters which allowed strain gauges to be retrofitted to OEM crank arms at a lower cost than other power meters on the market. Stages Cycling expanded its product line with dual-sided power meter technology, as well as indoor smart bikes such as the Stages SB20.
Early in 2023, Giant's board approved a $20 million bid to acquire a one-third share in Stages, but that deal didn't go through. Spia's new offer is to acquire Stages Cycling's trademarks and patents in the cycling realm only, and not for the company's commercial gym products produced and sold under Foundation Fitness.
Even if the bid is accepted and Stages' technology continues to be developed under new ownership, it is uncertain whether existing Stages products will be supported and serviced in the future.
