NEW WESTMINSTER, British Columbia (BRAIN)—Craig Pollack, Race Face’s former president and CEO, has spoken out for the first time since it became public that Race Face would shut its doors because of financial turmoil.
“It is a sad outcome for the brand, but more importantly for the people involved with the company," he said in a press release. "I personally thank all of our staff, riders, suppliers, customers and consumers for their support over the years. Our talented staff truly were the backbone of this brand. I have been humbled by their loyalty and determination throughout this process and wish them well moving forward.”
The reasons for the receivership are complex, but basically the company recently got offside on its borrowing base with the bank, according to the release. The partners in the company tried to structure a deal with the bank to get the company back on side but unfortunately, a deal could not reached. In this event, it was hoped that the company could be sold as a "going concern" but this solution also did not materialize.
"Race Face, started in 1992, is an iconic brand and has been instrumental in creating the fiber of the mountain bike industry," he said. "We are proud of our accomplishments over the last 19 years. Highlights include: helping to create the free ride mountain biking movement with our line of Diabolus components, being one of the first component suppliers to design parts for the all mountain market, and currently producing the Next line of carbon fiber cranks—the lightest production cranksets ever produced. The company will undoubtedly be sold to a new buyer, and the brand, as we know it today, will forever be changed, but we are proud of the Race Face legacy and the impact it made on the mountain biking industry and community.”
Race Face’s bank, The Bank of Nova Scotia, has taken control of the company, appointed a receiver, and will sell the company and its assets. The receiver, Grant Thornton, will determine a sales process for the company in the days to come.