Loveland’s Tri-City Cycle opened in 1991. (Facebook)
A powersports shop along Interstate 25 north of Denver is bankrupt.
Loveland’s Tri City Cycle filed for Chapter 11 protection, which generally allows companies to restructure debts and continue operating, on July 23.
Rachelle Bean, the dealer’s marketing and events coordinator, told BusinessDen Monday that owner Enoch Amoah, who bought the 35-year-old dealership last August, got “swindled” on separate investment deals where the business was essentially used as collateral.
“That has put Tri City Cycle in a position where we had to file for bankruptcy,” Bean said. “Even though our business is doing great and there’s no problem with what we have going on, we are caught up in that situation as well.”
Bean said the dealership continues to operate as usual.
Bean added that former owner Brady Welton is exploring buying back the business, which says it has the largest pre-owned motorcycle selection in the United States. Welton, who began working for founder Kurt Dimick in 1996, bought the shop with his father in 2002 and moved it to its current spot at 3675 Clydesale Pkwy. two years later.
“He’s trying to get it so he can continue to run the business because he knows it’s profitable,” Bean said. “He only sold it because he was ready to change his life and get into retirement, but he knows the business is successful and we as a team are successful.”
Tri City Cycle listed $50,000 to $100,000 in assets and between $10 million and $50 million in liabilities, court documents show.
The dealership owes two entities affiliated with Yamaha a combined $6.7 million and the U.S. Small Business Administration $3.5 million, per a filing. Tri City also owes First Advantage Bank in Loveland $2.1 million.
The dealer also sells boats, ATVs, side-by-sides and cars, according to its website.
Attorney David J. Warner of Wadsworth Garber Warner Conrardy is representing the company in the proceedings.
Editor’s Note: This story was updated after initial publication to include comment from a Tri City Cycles employee.
Loveland’s Tri-City Cycle opened in 1991. (Facebook)
A powersports shop along Interstate 25 north of Denver is bankrupt.
Loveland’s Tri City Cycle filed for Chapter 11 protection, which generally allows companies to restructure debts and continue operating, on July 23.
Rachelle Bean, the dealer’s marketing and events coordinator, told BusinessDen Monday that owner Enoch Amoah, who bought the 35-year-old dealership last August, got “swindled” on separate investment deals where the business was essentially used as collateral.
“That has put Tri City Cycle in a position where we had to file for bankruptcy,” Bean said. “Even though our business is doing great and there’s no problem with what we have going on, we are caught up in that situation as well.”
Bean said the dealership continues to operate as usual.
Bean added that former owner Brady Welton is exploring buying back the business, which says it has the largest pre-owned motorcycle selection in the United States. Welton, who began working for founder Kurt Dimick in 1996, bought the shop with his father in 2002 and moved it to its current spot at 3675 Clydesale Pkwy. two years later.
“He’s trying to get it so he can continue to run the business because he knows it’s profitable,” Bean said. “He only sold it because he was ready to change his life and get into retirement, but he knows the business is successful and we as a team are successful.”
Tri City Cycle listed $50,000 to $100,000 in assets and between $10 million and $50 million in liabilities, court documents show.
The dealership owes two entities affiliated with Yamaha a combined $6.7 million and the U.S. Small Business Administration $3.5 million, per a filing. Tri City also owes First Advantage Bank in Loveland $2.1 million.
The dealer also sells boats, ATVs, side-by-sides and cars, according to its website.
Attorney David J. Warner of Wadsworth Garber Warner Conrardy is representing the company in the proceedings.
Editor’s Note: This story was updated after initial publication to include comment from a Tri City Cycles employee.
