SEATTLE, WA (BRAIN) — Wheel maker Mad Fiber has shut down its Seattle factory and, according to several sources, may be headed for bankruptcy.
The carbon fiber wheel maker was merged with the Divine Cycling Group earlier this year. DCG’s current connection to Mad Fiber is unclear.
Industry veteran Ric Hjertberg was a co-founder of Mad Fiber; he left the brand in August and recently wrote on his blog that “I’m told what is left will go to bankruptcy shortly.”
Former Mad Fiber CFO Russ Riggins told BRAIN in an email that Mad Fiber shut down several weeks ago.
“We are out of business,” Riggins said on Wednesday.
DCG representatives were unavailable to comment. A source familiar with the situation said DCG is negotiating with Mad Fiber's creditors to work out a settlement; if those negotiations don’t work out, Mad Fiber will declare bankruptcy, the source said.
Hjertberg, who co-founded Wheelsmith and Wheel Fanatyk, said on his blog, “I must confess my inability to understand why it had to happen. Mostly I hope the episode does not deter other innovators beginning or considering creating positive technical change. Cycling needs you. May you have lucky breaks and tailwinds.”
In an email to BRAIN, Hjertberg said the blog posting is “all I want to say for the time being.”