The Pros Closet (TPC) website fired up this morning, announcing that it is taking submissions to purchase used bikes, frames, or wheels. We reported on the announcement that TPC, the most recognized and largest online used bike platform, would shut down after 18 years. This was another in a long line of indicators pointing to the bicycle industrys 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. The Escape Collective reported 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 to potentially start retail sales before the holidays.

　　Im incredibly excited to help lead the reboot of the brand Ive 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.

　　This is unlike TPCs previous owners, a medium-sized private equity firm that held several rounds of funding to infuse $90 million. This standard private equity playbook left TPC shouldering massive debt.

　　According to Escape Collective, as TPCs demise and auctions publically played out, Elshair quietly negotiated and eventually purchased all the intellectual properties. 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 didnt 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.

　　The Pros Closet to Start From Zero

　　(Photo/Seiji Ishii) Because Elshair elected to purchase the IP after liquidation, TPC has to start from scratch. England confirmed with Escape Collective that Elshair didnt 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 sellers of used bikes. It has no inventory to sell.

　　“It’ll take a couple of weeks for sellers to accept those offers, for the bikes to get to us, and to go through the refurbishment process, so realistically, it’ll be December before we have bikes for sale and probably January by the time we have a decent selection of used bikes on the site,” said England.

　　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 and Gage have reportedly contacted some former staff members, stating that they were pleasantly surprised at the level of interest in returning to TPC. England noted the company would start with a core staff and wish to expand within the next 6 to 12 months.

　　What Customers Can Expect TPC had a widely recognized logo and look to cycling enthusiasts before its demise. Escape Collective reported that customers can expect that TPC will retain a similar website and buy/sell process. Sellers will still have options for cash sales, consignment agreements, and store credit.

　　But, as expected, Gage, England, and former staff have ideas about what went wrong at TPC. I would honestly say that the staff recognizes all the pitfalls that have happened over the last few years. It will be an easy transition to say, ‘Hey, we’re tweaking this, we’re fixing that, we’re changing this,’ and gain immediate adoption from all of the people who are on board for TPC 2.0,” England said.

　　Will The Pros 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.

　　“Right now, a three-year-old [Specialized] Stumpjumper is worth less than it ever has been in the history of the bike industry,” England noted. ‘What we will aim to do is be as open and transparent [as possible] with both buyers and sellers about the realities of the resale market right now, and try and build trust.”

　　Other online sales platforms have also posed 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 told Escape Collective that today is probably the worst resale market in the history of the industry. But he, Gage, and other former The Pros Closet employees have a chance to right the ship that seemingly sank for good.

　　Time will tell, as always.

　　The Bike Industry Isn't Dead: MADE Bike Show Is ProofThe 2024 MADE Bike Show in Portland, Ore., showed the wares, heart, and soul of smaller brands and artisans. Read more