RANCHO DOMINGUEZ, Calif. (BRAIN) — The KHS U.S. distribution business will close at the end of the year as its founders, Wen & Susah Hsieh, retire after a half century years running the business.
The KHS and Free Agent bike brands will continue to be sold in other markets, and the brand’s Taiwan factory, United Engineering Corporation, founded by Wen Hsieh’s brother Jack, is a separate business that also will continue.
Wayne D. Gray, vice president of the U.S. business, said the U.S. business is talking to several entities interested in buying the distribution business, the U.S. distribution rights to the bike brands, or both.
Gray notified vendors of the closing in recent weeks and informed its sales reps earlier this week. The company has already agreed to sell its warehouse in Kentucky and plans to move that warehouse’s contents to its California facility this fall.
“We will continue to operate as normal until the end of the year,” Gray said. “The reps are on contract until the end of the year and the B2B site will remain in operation.”
He said after the first of the year the company will considering liquidating its remaining inventory at discount, unless a buyer for the business comes forward.
KHS is one of only two U.S. distributors, along with QBP, that continues to wholesale Shimano parts, along with Shimano’s direct U.S. sales. KHS also distributes dozens of P&A brands.
The move comes a few week after California distributor Euro-Asia announced it was closing.
Gray said he plans to retire and resume riding his bike every day, unless a new buyer wants him to stay on during a transition. Ray Keener interviewed Gray for a Q&A published in BRAIN’s October issue.
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Wayne D. Gray
