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Guru Cycles informs dealers of restructuring

Published December 16, 2015

MONTREAL (BRAIN) — Custom framebuilder Guru Cycles sent a letter to dealers this week announcing that the company is going through restructuring.

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Guru's Ted Matthews and VP of sales Robert Pinazza declined to comment on the letter or the restructuring on Wednesday afternoon.

The letter pointed to the company’s relocation over the summer, which was “extremely costly,” took longer than expected, and impacted manufacturing. Guru previously was headquartered in a 25,000-square-foot facility that housed its factory and offices in Laval, a suburb of Montreal.  

Guru made some 1,500 custom steel, titanium and carbon road and triathlon frames out of that Montreal factory, though in recent years the company began importing some Asian-made carbon frames, especially of stock sizes. The company offered custom frame geometry and tube diameters as well as personalized paint and finishes with a turnaround of four to five weeks. A year ago, Matthews told BRAIN the goal was to double the volume of manufacturing at the facility and the company launched a campagin in late 2014 to grow the number of Guru dealers. 

“The cost to move, coupled with the decrease in sales for the period, has resulted in significant losses,” the letter read. “At this time we are working with our bankers to restructure Guru.”

Guru is offering dealers a select number of frames at reduced prices in an effort to reduce inventory and improve cashflow, the letter said.

“They were a bit slow to deliver lately, but it’s a little bit of a surprise to us,” said JT Lyons, owner of Moment Bicycles in San Diego, and a Guru dealer, about the letter. ‘They’ve been slower than usual — still delivering product but it takes longer. They moved their factory and that slowed down their delivery.”

Earlier this year, Guru expanded its rep force and appointed a new CEO for the company, replacing Matthews, who took over as chairman of the board. 

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