Active Ride Shop files for Chapter 11

Today one of the largest and most influential action sports retailers, Active Ride Shop, filed for Chapter 11 bankruptcy. The official press release speaks of scaling back the number of physical locations. An interesting look into the bankruptcy details from the U.S. Bankruptcy Court filing reveals a complete list of creditors to whom they owe almost $9M.

If you are a vendor, distributor, or wholesaler, you are keeping your retailers honest now more than ever. In this economy, even the most honest of retailers is coming up empty handed. This means just one thing. Get ready to write off some big losses this year. Action sports retailers are going under everyday there won’t be any money to pay the distributers. Standard terms of net 30 used to buy shop owners enough time to turnover inventory. But with retail sales down, retailers are floating purchase orders from season to season. Extending terms out to 90 days or more has become the norm. The “local” board shops have been struggling since day one of the recession, but not even the big players can sustain themselves anymore.

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