The Pro’s Closet (TPC) website fired up this morning, announcing that it is taking submissions to purchase used bikes, frames, or wheels. We reported previously on the announcement that TPC, the most recognized and largest online used bike platform, would shut down after 18 years. It was another in a long line of indicators pointing to the bicycle industry’s post-pandemic struggles.
Today, TPC revealed that two longtime employees have assumed the helm, and a small private equity investor is the new financial backer. A press release confirms that the former chief revenue officer, Justin England, and the former COO, JP Gage, are heading the efforts to restock what was once a massive inventory and potentially start retail sales before the holidays.
“I’m incredibly excited to help lead the reboot of the brand I’ve been a part of for the last 15 years,” England posted on LinkedIn. “TPC is a powerful business model which can support brands, retailers, and (most importantly) riders on their cycling journey.”
The New Financial Plan
The new financier is Elshair Companies, which claims it has no external investors or financing. TPC now appears on the Elshair Companies website. England stated that Elshair is an expert with a great track record of growing e-commerce platforms.
This is unlike TPC’s previous owners, a medium-sized private equity firm that held several rounds of funding to infuse $90 million. This left TPC shouldering massive debt.
England told GearJunkie that Elshair quietly negotiated and eventually purchased all the intellectual properties as TPC’s demise went public and liquidation was underway. The sale included all the branding, website URL and the code that runs it, and nonphysical assets like customer and email lists.
Since Elshair waited until liquidation had started, it didn’t have to assume debts and other liabilities, like the lease on its large warehouse and office space in Louisville, Colo. Elshair then reached out to England and Gage to inquire about restarting TPC.
England explained to GearJunkie that his and Gage’s return wasn’t planned. “Literally 10 days ago, for the most part, I had no idea that I would be in the position I am right now,” he stated. He also explained that Elshair knew they needed a core group of former employees to steer the relaunch of TPC.
The Pro’s Closet to Start From Zero
Because Elshair elected to purchase the IP after liquidation, TPC has to start from scratch. England confirmed that Elshair didn’t purchase any physical assets. This means TPC must acquire every Allen wrench, bike repair stand, computer, and item on the significant list required to relaunch the business.
This is also why TPC immediately announced its acceptance of submissions from used bike sellers. It has no inventory to offer to potential buyers. England told GearJunkie today that they don’t even have a warehouse to store inventory yet but have been on the search and will acquire one as soon as possible.
Although TPC has started the process of filling inventory, refurbishing used bikes takes a few weeks. “We’re also aiming to have a curated selection available for sale before the holidays, just in time for you to find the perfect ride,” TPC claimed in its press release.
Another significant concern is employees. Successive rounds of layoffs for 2 years, followed by the final layoff last month, have left a significant wake of employees. England expressed that he and Gage were “pleasantly surprised” by the response of former employees who were contacted for a potential return. “Virtually everyone contacted wants to come back,” England said.
What Customers Can Expect
Before its demise, TPC’s logo and look were widely recognized by cycling enthusiasts. England confirmed that they will continue to leverage the familiarity of the platform and processes. Sellers will still have options for cash sales, consignment agreements, and store credit.
England was candid in expressing the pitfalls of TPC. When asked about the potential fear of both returning employees and customers, he quickly acknowledged that the concerns were valid. But he also stated that the errors of the last few years are obvious to everyone currently involved as are the changes required to avoid the same missteps. “We absolutely know what to tweak and change,” he added.
Will The Pro’s Closet 2.0 Survive?
The resurgence of TPC is indeed positive news. However, the question remains: Can TPC make a resurgence in the troubled cycling market?
The used bicycle market has hit rock bottom over the last few years. Prices are at historic lows after the supply surged to meet pandemic-fueled participation, which coincides with reduced spending power.
When questioned about the unfavorable economic environment and what competitive advantage “TPC 2.0” has, England told GearJunkie, “We can lean into our legacy; we were the first large platform that cycling enthusiasts could trust to inspect, refurbish, and deliver a used bike. That is still true.”
Other online sales platforms also pose a threat. Direct selling platforms like Facebook Marketplace and hybrid options like Buycycle are formidable competitors to TPC. Even in its heyday, a common complaint was that TPC made low buy offers while simultaneously leveraging high selling prices.
England agreed that it’s difficult to relaunch TPC in the current market. However, he expressed excitement about accepting the challenge with people who understood the business. He, Gage, and other former The Pro’s Closet employees have a chance to right the ship that seemingly sank for good.
Time will tell, as always.
