American Classic closes factory, puts IP assets up for sale

By Stephen Frothingham

The 35-year-old component brand cites challenging marketplace in decision to close.

TAICHUNG, Taiwan (BRAIN) — Amclassic Inc., the parent company of the American Classic wheel and component brand, has voluntarily closed its factory here and laid off about 40 employees in Taiwan and the U.S. The company is in negotiations to sell its trademarks and other intellectual property, while founder and co-owner Bill Shook said he is continuing his design work and is available for consulting.

“We thank our AC customers and staff for their support over the years and sincerely regret the impact of these actions,” said Shook.

“This is a new beginning for the AC brand and our technology. The challenges of the bicycle marketplace led to this decision. We are fortunate to have our health and will go on in a new direction without the stress of the factory. This is the start of a new journey in the best sport in the world.”

Wheels and parts continue to be available in the U.S. through BTI and through local distributors internationally.

Co-owner and general manager Ellen Kast told BRAIN that employees in both countries were paid severance. The factory, which was leased, shut down on Dec. 28.

Kast said …read more

Via:: Bicycle Retailer and Industry News