Active Ride Shop announced today that is has filed for a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the county of Riverside. Stay tuned to TransWorld Business for follow up information as it breaks.
As of today, Active Ride Shop’s official Web site only lists 22 open stores under its retail locations section. Here’s an excerpt from the official press release:
“Mira Loma, CA, March 23rd, 2009 – Active Ride Shop today announced that it has filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in Riverside. The company is focusing on executing a comprehensive corporate restructuring plan without interruption to business operations.
As previously announced, the company has closed 8 under-performing retail locations. This week, the company took action to realign its corporate support structure alongside the smaller store base, which will include 21 retail stores as well its e-commerce storefront. The store closings and corporate workforce reductions will result in combined workforce compensation and related costs in excess of 30%. Further, as part of its restructuring efforts, the company will continue to evaluate the productivity of all assets, analyze additional cost-cutting initiatives and research strategic alternatives to maximize the value of the business.
John Wallace, chief executive officer and founder of Active Ride Shop, said “The swift and dramatic downturn in the local economy had a major impact on our business in the 3rd and 4th quarters of 2008. In combination with the robust growth and expansion we experienced during the previous 24 months, this perfect storm of economic retraction left us with no other option.” He continued, “The preemptive cost cutting initiatives that we took throughout 2008 were not enough to protect our investment”