It’s long been speculated that the carbon fiber wheel manufacturer, Mad Fiber, would file for bankruptcy after months of instability following the company’s purchase by the Divine Cycling Group earlier this year.
According to court documents, DCG filed a Chapter 7 bankruptcy petition in U.S. Bankruptcy Court in Delaware, the wheel company lists assets of $1.21 million and liabilities of $1.65 million. DCG owns more than 60 percent of the company, according to court filings.
DGC purchased Mad Fiber last February , along with Blue Competition Bicycles and Serotta. Both brands have since shutdown under their original names as well.
Mad Fiber closed it’s Seattle factory early this fall.
More than 100 creditors are listed in the bankruptcy filing – to include the Auburn, Washington based Composite Solutions – which is owed $93,000 for tooling that’s held by DCG.
In addition to the money owed Composite Solutions, DCG leaves employees, managers, investment groups, suppliers, the IRS and the State of Washington Department of Revenue numerous accounts of unpaid debt .
The company also owed $9,500 to Competitor Group, the publisher of Velo magazine and other cycling titles, and $3,000 to Hi-Torque Publications, the publisher of Road Bike Action and other titles. It owes $28,000 to Thorpe Media, a Colorado marketing and PR firm.
Among the assets listed are $455,000 in machinery and equipment, $168,000 in inventory, $90,000 in receivables and $441,000 in “goodwill,” which apparently includes the value of intellectual property, trademarks, licenses and other intangibles.
A hearing is set for Dec. 30 in Delaware.
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