I was very close to buying a Gravel bike from Parlee and I heard yesterday that they will be filing for bankruptcy. They say it is still business as usual, and that they will only sell what they know they can deliver… They are hoping to come out of this still selling their fine bikes.
Would this give the forum pause?? I’m trying to think of possible problems that could arise if I buy this expensive bike (Chebacco LE).
Bike shop will generally honour warranty on parts even if the bike company itself went under. e.g., if a SRAM derailleur went bad they could work with SRAM to make it right. But warranty replacement on the frame if something were wrong with it, well that would be a different matter.
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They are reorganizing, not liquidating, so short-term at least, they should be aro7nd if there is a warranty claim.
Longer term is another question entirely….will depend on the strength of their reorg plan.
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Carbon is easily repaired even if they did go under.
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Ask for a discount to mitigate your risk.
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I thought about the discount…but tough to ask a company fighting to survive…bad karma
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If the bike is in stock then ask for a discount. They will need the cash. I would be wary of paying a deposit on a bespoke bike though. Also factor in the potential of no warranty. Don’t be embarrassed asking for a discount. It’s business.
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Yeah, don’t pay any deposit; there’s the chance that that deposit just gets considered debt, and you end up at the end of the line of creditors with no bike and no money.
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I’d be ordering through a LBS, so I assume they would make me whole… I think
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I wouldn’t expect that and I wouldn’t expect them to take on that liability for you. If the frame breaks 10 months from now and Parlee is totally out of business, why should they reimburse you?
Buying a Parlee at this point is a risk, albeit probably a small risk, so don’t do it if you don’t want the risk.
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This rather depends on consumer law in your area/country. If you order through a LBS in the UK, and pay said LBS a deposit, then your contract is with them, not the manufacturer. In that instance, if a company went pop between deposit and supply, the shop would be obliged to refund you.
If the product breaks, and there’s no one to repair it (because the company who made has gone bust) then I believe the onus would still be on the shop, but I’m less certain on that.
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Assume there is no warranty (just like buying 2nd hand). If that is a big thing for you and the price doesn’t reflect that, I’d pass. I’d be very surprised if an LBS would step in and honor a warranty on a defunct bike company, most of the LBS’s do not have deep pockets. If it was a big chain like Performance Bike, maybe, but even then I’d get it in writing. My other concern is if the bike has any proprietary parts (pretty common these days). Like if they use a proprietary derailleur hanger. You might be able to hunt one down used, but assume anything proprietary won’t be manufactured/available in the future. Maybe they pull through and come out of the bankruptcy a stronger company with a bright future. I hope they do. But if they are having trouble now (after the last few boom years), I personally wouldn’t count on them being around.
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Also common consumer law in EU, that seller is responsible for the warranty, which in this case is the bike shop.
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Depends entirely on the local laws. In the EU f.ex. the seller is liable for the warranty. The LBS can’t decide themselves if they want to reimburse a customer or not.
Not to say that there can’t be problems if proprietary parts break (frame etc.) but depending on where @Jkauffman is making the purchase, his warranty should be covered.
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I think @Jkauffman was referring to a deposit and the LBS honoring that vs. the LBS honoring the warranty if the frame has issues.
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Truly was talking both about deposit AND warranty
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Deposit, maybe.
Warranty, no way
(Assuming you are in the US)
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Agree 100%. I had a frame warranty claim with Trek through my LBS (one of the biggest Trek dealers in the country at the time). Trek pushed back on the warranty and the LBS had zero interest in replacing my frame. Trek eventually came through with a replacement frame, but it was painful and I ended up having to fight Trek directly with my LBS deferring to Trek. It was a pretty crap-tacular experience on an expensive project1 Madone frame. I still love that bike, but really made me question the value of the warranty. If it had been a defunct bike company, I’m sure it would be a very short discussion. Sounds like EU might have some different standards/laws, that’s a tough ask on a small family business to honor a mfg’s warranty.
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Yes on USA
So if you decide to move forward on a Parlee, I’m sticking with the idea that you’ll be fine, short-term. Long-term will depend on how successful they are in reorg.
As for the deposit, make sure you are clear with the shop what happens if they go belly-up after you put down a deposit (although I think the chances of that happening are pretty slim in such a short time period. )
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