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자전거당

Trek is facing a financial emergency.

112.27.***.***
13
The article is below

https://escapecollective.com/layoffs-overstock-retail-decline-and-debt-trek-is-in-trouble/

It's an article from a while ago, but here's a 3-line summary

  • 1. After expanding excessively during the COVID-19 pandemic, inventory and debt problems arose due to a sharp drop in demand.
  • 2. Due to declining sales + burden of directly operated stores + interest costs, restructuring (layoffs) is underway.
  • 3. It's not at the point of collapse yet, but it's currently in a slump phase as it cleans up the aftereffects of expansion failure.

  • That's the gist.
  • They misjudged that the pandemic's explosive demand would last forever and poured in a lot of inventory. 
  • Currently, they are caught in a vicious cycle of renting additional warehouses to store unsold inventory and taking out loans to cover the rent.


  • On top of that, tariffs and the war have added to their woes,
  • so they are said to be in a rather serious financial crisis.


  • It's interesting to read the article carefully.

  • It's not just a Trek problem, though.
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