Titus Auction Closes Today!

November 19th, 2010 2:44pm

UPDATE - NOV 19.2010

Titus’ major lender Factors Southwest, which took  control of the bike company on Tuesday, is accepting bids to buy Titus until next Friday, Nov. 19, at 12 p.m.

“We have received a lot of interest in Titus and we want to get Titus into its new owner’s hands as quickly as we can so they can build on the equity and loyalty in the company,” said Robyn Barrett, Factors Southwest managing member.

The auction will include Titus’ trade names, trademarks, logos, Web site, customer lists, inventory and all personal property. It also will include Titus’ Horst Link license currently held by Specialized. The Titus facility and inventory is available for pre-auction visit.

After the auction next Friday closes at noon, a second auction is planned to quickly follow. Those participating in the first auction will be told the highest bid and can submit a new bid. The lender also is accepting bids on its note from those who wish to forgo the bid process to get Titus up and running even quicker.

“Over the last year Titus laid off many of its good employees and the company’s image was threatened, which is the reason we foreclosed. We realize how important it is to minimize the time Titus is off the market and are open to bids on our note,” Barrett said.

Those wishing to review Titus’ assets prior to bidding should contact Barrett at (480) 947-9340, ext. 1. Auction bids should be sent to Chris Arnold, United Companies, chief executive officer. He can be reached at (602) 828-2772 or [email protected].

UPDATE - NOV 10.10

Here is the latest update on the closing of Titus Bikes - According to Bicycle Retailer.

TEMPE, AZ (BRAIN)--Titus’ major lender, Factors Southwest, took control of the bike company on Tuesday, and is in the process of finding a buyer for the company. It is not interested in breaking up the company to sell just its assets.

Last week Titus informed its dealers via email that the bank foreclosure was imminent. In the email it also offered dealers a chance to buy its remaining inventory. However, retailers said that opportunity has not materialized.

“I received the email a few days ago, on Friday. I’ve been trying to get in touch with the company for the last few weeks but they haven’t returned emails or phone calls,” said Chris Shelly, owner of Spinning Lizard Bikes in Lake Monticello, Virginia.

“I would like to get a chance to buy remaining inventory before it is offered to online retailers, if possible. I still have customers coming in wanting a Titus,” he said.

Titus retailers have known of serious problems as the company slowly laid off inside sales people and other employees over the past year. Many retailers remain loyal to the brand and are sorry to see Titus close.

The lender is engaging a third party to head up an auction process and collect bids. The bank hopes to release information for this intermediary shortly and it will become the contact for interested parties.

NOV - 8.10 _ Titus Closing it's doors

Boutique bike manufacturer Titus is officially closing it's doors as lenders for the company have called in the debt Titus owed. Moving swiftly, the lenders will be liquidating any and all assets from the company beginning November 8th.

According to the official email from Titus Cycles:

“Our largest lender is foreclosing on an outstanding loan. Commencing immediately, they will initiate an orderly liquidation of company assets. Please direct any inquiries to [email protected]”

Titus has always been one of the more popular brands, however they have seen quite a bit of change in recent years. Titus Cycles founder Chris Cocalis left the company and started a new company (Pivot Cycles) not too long ago. Longstanding employees were recently “let go” a few weeks back. There was much writing in the Titus forum walls.

The Titus Cycles email ends: “All inquiries and requests will be answered beginning Monday, November 8, 2010.

Many of you have been partners with Titus for a very long time. We deeply appreciate your support through the years.”

News of the closure has been around since Titus fell on tough times several years ago but really began to take on a higher level of concern recently with the laying off of their marketing manager, a lack of presence at Interbike and other tell tale signs. Many, and Bicycle World TV included, saw the demise of the company being traced around the time that Chris Cocalis left and new management took over. As an industry insider and former Titus bike owner, this author feels that while many things contribute to businesses failing, it was loosing the passion that Cocalis brought that was the stake in the heart of the brand. I think a lot of hard core riders felt the same way and went to different brands once they lost their personal connection Titus seemed to exude.