TEMPE, AZ (BRAIN)--Titus’ major lender, Factors Southwest, took control of the bike company on Tuesday, and is in the process of finding a buyer for the company. It is not interested in breaking up the company to sell just its assets.
Last week Titus informed its dealers via email that the bank foreclosure was imminent. In the email it also offered dealers a chance to buy its remaining inventory. However, retailers said that opportunity has not materialized.
“I received the email a few days ago, on Friday. I’ve been trying to get in touch with the company for the last few weeks but they haven’t returned emails or phone calls,” said Chris Shelly, owner of Spinning Lizard Bikes in Lake Monticello, Virginia.
“I would like to get a chance to buy remaining inventory before it is offered to online retailers, if possible. I still have customers coming in wanting a Titus,” he said.
Titus retailers have known of serious problems as the company slowly laid off inside sales people and other employees over the past year. Many retailers remain loyal to the brand and are sorry to see Titus close.
The lender is engaging a third party to head up an auction process and collect bids. The bank hopes to release information for this intermediary shortly and it will become the contact for interested parties.