Advanced Sports, Inc. (ASI)
Situation
Philadelphia-based Advanced Sports, Inc. (ASI) had built a successful business by selling storied cycling brands Fuji, Kestrel, SE and Joe Breezer to more than 750 independent dealers across its wholesale network. But the company strayed from its core product categories and wholesale business. In addition to expanding into retail stores, ASI purchased an excessive amount of inventory, much of which did not align with the Company’s core competencies. The company closed its retail stores and filed for bankruptcy.
Tiger’s Vision
Tiger saw a viable going-concern business with strong brand equity and distribution infrastructure. In February 2019, a bankruptcy court approved Tiger’s $23 million, going-concern bid, submitted in a joint venture with a Taiwan-based manufacturer and a third-party real estate entity.
Recognizing that ASI carried tried-and-true product lines, interim CEO Ryan Davis, Tiger Group Executive Managing Director, moved to pare back the inventory overgrowth and refocus ASI on its core categories, SKUs and wholesale business. As Davis observed at the time, dedicated cyclists choose dealers first and they tend to prefer independents over corporate chains. He also directed his teams to reach out to the dealer network, listen to their concerns, and make sure ASI was providing the highest level of service possible. In a critical component of the turnaround, the independent dealer network was preserved.
Outcome
In October 2019, Tiger sold its stake in the LLC to the Taiwan-based JV partner, preserving 43 jobs. Just a few months later, the pandemic triggered a sharp increase in global demand for bicycles. With its restored balance sheet and revitalized inventory, ASI was was ready to capitalize on the opportunity, and it continues to serve its customers today.