Invested Specialized Dealers Likely To Walk Away From Online Retail Operation (UPDATED)
MORGAN HILL, CA (BRAIN)--Ownership of Specialized's consumer direct web site may soon pass from a group of more than 300 Specialized dealers to Specialized itself. The seven-retailer board of directors that presides over the e-commerce company Specialized Dealers Direct (SDD) unanimously recommended
that dealer shareholders divest their shares.
The fate of SDD's ownership will be decided in a pending shareholder vote.
"The company has been profitable for last year and a half, but not significantly profitable," said Rick Vosper, Specialized's director of marketing. "We're facing another round of investing--we need another quarter-million-dollar server--and this is a good point for our shareholders to reevaluate their investment."
If the shareholders were to divest now, they would get back their original investment, plus a portion of "the modest profit the company has made to date," Vosper said.
Specialized Bicycles is a minority investor in SDD, which was created in 1999. Specialized dealers invested $574,000 in SDD.
Regardless of ownership, Specialized.com will continue to sell online, Vosper said.
Look for a full story in the November/December issue of Bicycle Retailer and Industry News.
The fate of SDD's ownership will be decided in a pending shareholder vote.
"The company has been profitable for last year and a half, but not significantly profitable," said Rick Vosper, Specialized's director of marketing. "We're facing another round of investing--we need another quarter-million-dollar server--and this is a good point for our shareholders to reevaluate their investment."
If the shareholders were to divest now, they would get back their original investment, plus a portion of "the modest profit the company has made to date," Vosper said.
Specialized Bicycles is a minority investor in SDD, which was created in 1999. Specialized dealers invested $574,000 in SDD.
Regardless of ownership, Specialized.com will continue to sell online, Vosper said.
Look for a full story in the November/December issue of Bicycle Retailer and Industry News.
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