Tough times... Bad economy... unpredictable stock markets.... crazy real estate markets.... etc.... just another one bites the dust! Active Ride Shop has filed for a CH 11 bankruptcy. Which actually means its not all that bad for them... just some good ol protection and reorganization of the company...
Established in 1989, Active Ride Shop maintains its position among the top retailers and mail order businesses in the action sports industry. Awarded Surf Industry (SIMA) Men’s Retailer of the Year (2008), #1 Specialty Retailer by the Future Trade, #36 on DNR’s “top 50 most influential menswear retailers.” Active has locations throughout Southern California and delivers catalogs to action sports enthusiasts nationwide. Active Ride Shop sponsors the most elite skateboarders and snowboarders in the world, and is proud of its offering of the finest brands an hottest trends in the industry. For more information about Active Ride Shop, visit www.activerideshop.com.
basically its SO CAL'S premier HYPEBEAST super store!
Active has closed eight stores during the past few weeks, bringing its current store count to 21. The stores that have closed are in San Diego (downtown, Las Americas and Chula Vista), Mission Viejo, Lake Elsinore, Westwood, Irvine (Alton Parkway), and Simi Valley. Three more stores are on "the bubble" and will stay open if the company is able to renegotiate leases with landlords, Active co-owner Shane Wallace told me in an interview.
ACTIVE CEO Shane said many of the stores that closed did not have time to mature before the economic crisis hit and were "sucking cash from the company." He also said Active opened some new stores too near to older stores and that cluster strategy did not work.
Other new stores, such as Santa Monica, are doing well. "We found we do great as a destination, not as a cluster," he said.
Shane said that he hopes the bankruptcy filing, while painful, will allow the company, which is celebrating its 20th anniversary, to begin the healing process and return to being a strong company with 21 stores instead of 29.
now for months i knew this was going to happen... but damn i didnt think that it was ACTUALLY gonna happen!!! ... 1st sign that i knew it was a wrap for ACTIVE was talking with a Burton rep asking why Burton wasnt being carried for the 08/09 season... just a quick simple answer...
ACTIVE doesnt pay their bills!
pretty much they built faster than they can earn... large pretty stores.... fully stocked... awesome locations.... but just not enough income to offset all those huge bills!!!
word on the street is that ACTIVE owes BURTON like over 2 million alone in unpaid bills.... so what they do? come in.. kick down the door... and take back their shit...Interestingly, only BURTON is on the list of secured creditors...Secured creditors get payment priority in a bankruptcy.
werd up BURTON.. handle biz.... i hope other clothing lines aren't seriously affected by the fall of ACTIVE... here is a list of who owes what
3/31/07: $58.9 million
3/31/08: $61.8 million
3/31/09: $59.9 million (projected)
Annual net income (loss)
3/31/08: ($2 million)
3/31/09: ($7.7 million) projected