Collapse! Another Amazon seller ceases operations, owes 454 million yuan, and fires all employees

Since 2022, news of various big sellers going bankrupt in the cross-border e-commerce industry has been common.

Recently, news came out that a well-known seller on the Amazon platform has officially ceased operations, owed 454 million yuan, and all employees were laid off, causing an uproar in the industry.

Stages Cycling officially ceases operations

Recently, it was reported that Stages Cycling (hereinafter referred to as "Stages") , a well-known best-seller on Amazon's power meter and indoor fitness bike brand, has officially announced the cessation of operations and laid off all employees .

Public information shows that Stages was founded in 2009 and was once very popular on the Amazon platform: over the past 15 years, it has launched a number of bicycle power meters, a full range of outdoor bicycle power meters, indoor bicycles, indoor exercise bikes, etc., and is quite famous in the field of professional bicycle equipment.

In order to verify the news, someone came to the outside of the company's manufacturing and R&D headquarters office in Boulder, Colorado, USA, and finally found that the door was closed and there was only a Stage brand van parked outside.

When you open the Stages brand store on the Amazon platform, all products are shown as “ Currently unavailable”.

The words “ OUT OF STOCK ” also appeared on Stages’ DTC independent website page, but the website reminded that independent website consumers can submit their email addresses, and they will be notified of the stocking news by email once the product is restocked later.

According to sources, the company has stopped placing orders with suppliers and has also stopped shipping to customers.

It started operating in 2009 and has now ceased operations. Interestingly, four former executives chose to join its "enemy" - the Taiwanese bicycle company Giant Bicycles (hereinafter referred to as "Giant") . All signs indicate that this household bicycle brand is basically unable to recover.

Stages and Giant have been in conflict for more than a year. In order to quickly establish its own bicycle ecosystem strategy, Giant announced in January 2023 that it would acquire Stages' shares for more than $20 million in cash and stock .

However, a few weeks later, Giant issued another announcement that the " acquisition of the Stages brand failed ", and then the two sides began to officially go to court.

The reason is that between June 2022 and January 2024, Stages owed Giant a number of payments including power meters, fitness bicycles, product parts, storage fees, shipping fees, etc. , with a total of 161 unpaid invoices.

After the news of Stages' cessation of operations came out, Giant is suing Stages, demanding it to pay about NT$454 million in unpaid invoices . Stages has responded to the lawsuit, denying the allegations, and the court said it will hold a telephone hearing on the case on May 17 this year.

Nowadays, the global E-bike market demand is booming. As an important player in this field, Stages is out of the market at this time, which is regrettable.

However, the continuous overdue payments for goods had a significant impact on Stages, which eventually became a "deadbeat" and was forced to cease operations.

Many Amazon sellers have left the market

The current economic situation has caused many big sellers to suffer heavy blows and fall from their pedestal. Even Amazon's number one seller is on the decline.

In April 2023, Amazon's home furnishings store Fully announced that it would cease operations because its parent company MillerKnoll stated that ceasing operations of the Fully brand would help the company reduce operating costs and further optimize its organizational structure, and closing the Fully brand would incur a cost of US$37.2 million.

In June 2023, Amazon's home appliance giant Instant Brands filed for Chapter 11 bankruptcy protection in the Southern District of Texas, USA. According to its bankruptcy protection filing, Instant Brands will be allowed to continue operating while getting rid of debt and other unaffordable costs, and will give it "time and flexibility to continue ongoing discussions with all financial stakeholders in an effort to reach a consensus and improve the company's financial condition."

In September 2023, Noble House, the company that owned Christopher Knight Home, a popular home furnishings brand on Amazon, filed for bankruptcy. The reason for the bankruptcy was the severe financial situation caused by the impact of inflation and the decline in consumer spending.

In October 2023, SmileDirectClub, one of the leading brands of dental braces on the Amazon platform and a global dental equipment giant, announced that the company had initiated the asset restructuring transaction process and voluntarily applied for protection under Chapter 11 of the U.S. Bankruptcy Code. Soon, the company was approved by the U.S. Bankruptcy Court for the Southern District of Texas.

In March of this year, BowFlex, a well-known fitness equipment seller on Amazon, filed for Chapter 11 protection of the U.S. Bankruptcy Code, and 202 workers of the company were laid off.

Now that Stages Cycling has officially ceased operations, there are still many cases, too many to list.

In general, cross-border sellers will still face huge challenges in 2024. Although there are frequent bad news about overseas sellers, it is also a good opportunity for domestic sellers with strength in related fields to increase brand awareness. If sellers can seize the opportunity when all the giants are weak, they will be able to quickly develop their own brands .