BOULDER, CO (BRAIN)—Veltec Sports is in the process of shutting down operations. Its Dutch parent company began laying off staff at the offices and warehouse in Carson City, Nevada, and Boulder, Colorado, earlier this week.
Veltec Sports has started selling through and liquidating remaining inventory. It had been in business since 1984.
“Our plan is to be completely shut down by Friday, Sept. 2,” said Shelley Gedak, vice president of finance for Veltec Sports. “The staff we let go on Wednesday were not key to the shut down.”
Six employees were laid off and 10 remain, according to Gedak.
Gedak said the decision was made by senior management in the Netherlands and emphasized that it was a voluntary action. She said key employees in sales, distribution and accounting will remain through Sept. 2 to help wrap things up.
Veltec Sports currently distributes Descente, Lake and Shebeest. It holds the license for the Descente apparel brand in the U.S. and that will be returned back to them, Gedak said. Shebeest and Lake are both owned by its Dutch parent company.
Manfred Krikke, Sr., founder and owner of Veltec, said in a press release that the company is looking to sell both brands over the next few months.
“Our brands have a strong following in the market,” Krikke said. “During the 2011 season we have had a hard time supporting the growth in demand, ultimately leading to product supply issues. It is now time to pass the baton to someone who can take these brands to the next level. We have received a number of inquiries from interested parties to date and are going through a process to determine the best strategic fit for each brand.”
In the release, the company pointed to other challenges in the U.S. market, where cycling brands have increasingly turned to direct-selling models over the last decade. As a result, the company said it’s refocusing resources on Veltec Benelux.
“The dynamics of direct sales and brand consolidation in the market has made it difficult for independent distributors and focused high-end brands,” Veltec said in the statement.
Through the years, Veltec Sports has distributed several industry leading brands including Sidi, Look and Easton. Over the past three years, it reorganized to focus on company-owned brands.
—Lynette Carpiet
lcarpiet@bicycleretailer.com
