CARBONDALE, Colo. (BRAIN) — Revel Bikes told its dealers in an email Thursday afternoon that the brand will be closing.
"There is no easy way to say this. Revel Bikes as it currently stands is closing its doors," the email begins.
"Regrettably, though we have tried every avenue possible, we have exhausted all options and run out of funds to support the business. This decision comes at a critical juncture for our capital requirements, and we cannot weather this one alone. Our circumstance is tough, though not unique in the market, with product delays, significant payments coming due and a very soft market. We are on the ledge and we lost our safety net as a result of continued losses with no end in sight."
The letter said the company owes more than $8 million to its bank and the company is now in "an orderly wind down." It said there is unlikely to be any remaining funds to pay unsecured creditors.
"I want to be open to the potential that Revel could be revived to a bigger and brighter future if a new owner comes in while we are going through the wind-down process. This is a talented team with a great brand, someone might want to buy out the debt and see this through. That said, I must be realistic and transparent with all of you - I do not know what will happen from here and we are going to have limited time. Take care of yourself and your teammates, do what is right for you and I will do whatever I can to help," the email said. The email is signed by Ben Coates, Revel's CEO, and Matt Hoogenboom, its sales manager.
The letter said starting Friday Revel Bikes will be discounted by 40-50% at retail. Dealers who choose to take any more products can make a 10% margin at the new prices, with no terms. It said warranty support will end but the company is looking for a partner to take remaining stock and continuing to offer product support.
Adam Miller founded Revel in 2019, two years after founding Why Cycles, a titanium gravel bike brand. In 2023, Miller combined the two brands and last year at the Sea Otter Classic he announced he was stepping down from the company as industry veteran Coates took over as CEO and president.
