TUCSON, AZ (BRAIN) — Trisports.com has filed for Chapter 11 reorganization, citing a downturn in business stemming from problems with a new software system, competition from online retailers and the closure of a second retail store in Tempe, Arizona, in court documents the Arizona online and brick-and-mortar retailer filed last week.
Trisports.com launched in spring of 2000 in Tucson, Arizona, and quickly gained traction as a leading multisport online retailer of gear and supplies for triathletes. In 2006, Trisports.com moved into its current 32,000-square-foot facility that houses a retail store, warehouse and corporate headquarters. The company currently has 32 employees.
Bicycle Retailer was unable to reach Trisports.com owners Debbie and Seton Claggett for comment, but in a letter published on www.xtri.com, Seton Claggett said, “We took this action so that we can efficiently negotiate repayment terms on monies we borrowed from Bank of the West, which we used to help grow our business, and address outstanding invoices from our vendors. The downturn in the economy greatly affected our business, and unfortunately, the investments we made to implement several key growth initiatives last year were undermined by Bank of the West’s decision to cancel our line of credit and call our equipment loan.”
According to documents filed in U.S. Bankruptcy Court, Trisports.com owes $1.7 million to Bank of the West and $111,835 to American Express.
Among the top 20 unsecured creditors listed in the bankruptcy filing are TYR ($273,752), 2XU ($262,116), Quintana Roo ($135,038), SRAM ($70,638) and Pearl Izumi ($102,990).
Trisports.com also listed debts to Orbea ($140,773), K2 ($172,477), Cervélo ($73,000) and QBP ($55,503) for inventory purchased.
In the letter, Claggett said that Trisports.com is working on a plan to outline how the company intends to pay its pre-petition debts.
According to court documents, Trisports.com has been authorized to continue to operate as a debtor in possession during the reorganization. Debbie and Seton Claggett are to provide the capital necessary to continue to do business, following a proposed 13-week budget allowing them to operate without interruption through September 8.