Stages Cycling – Bankrupt?

Stages Power LR Shimano Dura-Ace R9200 Dual Sided Power Meter Review heroStages Cycling – Bankrupt?

Rumours about the financial security of Stages Cycling have circulated for several months and yesterday matters seem to have come to a head. Escape Collective reported that the company had laid off its entire staff.

The exact causes are unknown but are most likely linked to the boom and bust cycle caused by Covid. We’re now in the bust phase. Of course, other companies experience similar market pressures but one report suggested that Stages was particularly hard hit by its reliance on revenues from health clubs – also a struggling sector.

Most of us will think of the company’s power meters (I have a couple of sets including G3) used by several pro teams but don’t forget its indoor bike and well-featured cycling head units.


We will see what happens with warranty claims (I have one ‘live’ at the moment). Remember that Stages uses international distributors, in the UK it’s Saddleback. So there will be finished stock in the supply chains and (edit) Saddleback has said it will honour any warranty claim.

What Next?

Stages power meters are good and will make an attractive addition to the component portfolio of one of the larger bike manufacturers (Giant opened discussions to buy 31%). Potential suitors might even include Shimano or Wahoo, although the recent recovery of the financial woes of the latter makes them an unlikely prospective candidate. Talking of Shimano, they’ve just announced a 20% fall in sales, so maybe they’re out of the acquisition game too!

Maybe a sale will see Stages’ assets divided up?

  • Stages Bike Computers L200/M200 – they don’t sell well but are well-featured. I can’t see much interest in them. Maybe a sports watch company like Coros would be interested in the cycling industry? They’ve just announced a screen mirroring feature for cyclists.
  • Stages power meters – remember the company buys in the cranksets and ‘just’ sticks its power meters onto them. It’s a tricky product to design, and the manufacture/assembly of the final product requires a significant amount of cash to hold stock.
  • Stages Bike – sold to the home and gym markets, the latter will require a separate sales and distribution effort, which will be costly and less attractive than it used to be as Peloton is now a major competitor.

What I think will happen

Giant or one of the other larger bike companies without an in-house power meter will end up owning the company and divest or stop any interest in the Bike and bike computers.

I would assume/hope that the warranty/guarantees carry over to the acquirer but don’t bank on it.


via Escape Collective

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2 thoughts on “Stages Cycling – Bankrupt?

  1. The Giant deal was never concluded and fell through – So Giant do not currently own 32% and the cash injection ($20mil) that was part of that deal never happened, which is most likely why this happened

    “Original reports on a deal between the two companies said that Giant’s board agreed to purchase what amounted to about 32.5 percent of the Stages company stocks.

    Giant’s latest filing says that “the Company and the counterparties are unable to reach mutual consensus on the terms and conditions of definitive agreements, therefore the parties have discontinued the negotiations. The parties have not executed any definitive agreement.””

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