Huffy, the second largest bicycle selling in the country, has fallen on hard times. After a few big bad business decisions — including a bad acquisition — its market cap has fallen from $50 million to less than $5 million, and its stock has been delisted.
What’s interesting is that Huffy moved its production first to Mexico, then to China, and now its Chinese suppliers are bailing it out — because they think that’s good for their own business. (I love the name of the Chinese insurance company.) From China Suppliers Join in Plan To Rescue Huffy:
The Chinese export insurance agency, also known as Sinosure, provided guarantees against invoices to Huffy’s Chinese suppliers, which enabled them to borrow from their bankers in China and repay them when they in turn received payment from Huffy. When Huffy ran out of cash, it left the Chinese concern with about $50 million in claims. “We had to take responsibility for the losses at Huffy,” Mr. Liang says. “We thought about how we can recover the losses and recover the taxpayers’ money.”
Some Huffy history:
Huffy, which began life as the Davis Sewing Machine Co., produced its first bike in 1892 under the Dayton nameplate. Named after Horace Huffman, who sold Davis Sewing Machine in 1925, the ‘Huffy’ name made its debut in 1959 with the introduction of the type of bike many Americans remember from their childhoods — the Huffy Convertible, which featured rear training wheels for children.