Another shop closing

JDurk

Well-Known Member
Been hearing rumors about this for a few weeks, but today it's official. Long-time SJ ski,snow and bike shop Danzeisen and Quigley in Cherry Hill is planning to close. Bought alot of merch there over the years: ski gear, snowboards when I became a knuckle dragger, bikes and parts. They've been a great supporter for the Summer Sizzler of the MASS series, the Camden County NICA team and the local triathlon scene. Support your LBS!

https://www.courierpostonline.com/s...ki-bike-danzeisen-quigley-closing/2935950002/
 

michael.su

JORBA Board Member/Chapter Leader
JORBA.ORG
That’s a bummer. I bought some ski stuff there back in the day when I lived down that way.
It was a nice shop.
 
Last edited:

Ian F

Well-Known Member
Bummer, but I often wonder why small businesses like these seem to ignore any sort of succession plan? So when the time comes for the owners to leave, the result is the store closing.
 

lurker

Active Member
This isn't anything new. Everyone buys stuff on the internet for way cheap. Me? I've built a 10 year relationship with my lbs, I order stuff and don't ask the price and often pay in cash. I hope my lbs stays in biz forever
 

cfrone1

Shop: Pops Bike Shop
Shop Keep
FYI, Somerville Bicycle Shop has also closed up permanently. They had originally planned on moving up to the Main Street, but have decided to not reopen.

On a related note.....Pops Bike Shop has announced our second location will open in April at 34 East Main Street in Somerville. This is directly across the street from the historic Courthouse, which had previously housed the original Somerville Cyclery and Wheel Life Somerville Bike Shops. We have also added Trek Bikes at both of our locations starting March 1.
 

Santapez

Well-Known Member
Team MTBNJ Halter's
Bummer, but I often wonder why small businesses like these seem to ignore any sort of succession plan? So when the time comes for the owners to leave, the result is the store closing.

Hard sometimes to see what goes on the background. They could have been looking for a buyer in the last 10 years. But who realistically buys up a bike shop nowadays when if you're looking to get into it you would just open your own shop. What's there really to buy?
 

Patrick

Overthinking the draft from the basement already
Staff member
FYI, Somerville Bicycle Shop has also closed up permanently. They had originally planned on moving up to the Main Street, but have decided to not reopen.

On a related note.....Pops Bike Shop has announced our second location will open in April at 34 East Main Street in Somerville. This is directly across the street from the historic Courthouse, which had previously housed the original Somerville Cyclery and Wheel Life Somerville Bike Shops. We have also added Trek Bikes at both of our locations starting March 1.

Best of luck with the new location!
 

Mathers

Well-Known Member
Hard sometimes to see what goes on the background. They could have been looking for a buyer in the last 10 years. But who realistically buys up a bike shop nowadays when if you're looking to get into it you would just open your own shop. What's there really to buy?
This and small business owners tend to over evaluate their businesses worth.
 

walter

Fourth Party
FYI, Somerville Bicycle Shop has also closed up permanently. They had originally planned on moving up to the Main Street, but have decided to not reopen.

On a related note.....Pops Bike Shop has announced our second location will open in April at 34 East Main Street in Somerville. This is directly across the street from the historic Courthouse, which had previously housed the original Somerville Cyclery and Wheel Life Somerville Bike Shops. We have also added Trek Bikes at both of our locations starting March 1.

Your shop definitely wins the award for best smelling ?
 

goldsbar

Well-Known Member
A friend of mine owned a clothing store with his parents years ago. When they closed, he said it was much more profitable just to have a big sale and sell everything than it was to try to sell the store. Might be the same concept in bicycle retailing.
 

SmooveP

Well-Known Member
Hard sometimes to see what goes on the background. They could have been looking for a buyer in the last 10 years. But who realistically buys up a bike shop nowadays when if you're looking to get into it you would just open your own shop. What's there really to buy?
This. I looked into buying a shop years ago. Some of the advantages of buying an existing shop are: being able to hit the ground running with inventory, point-of-sale equipment, employees, existing customer base, etc. There's also the value of what's called "goodwill", which includes the intangible stuff, like the name and reputation of the business. One of the biggest expenses in NJ is real estate, whether you're buying or renting. The D&Q guys might own the building and decided to keep it and rent it out as a source of retirement income, or sell it and cash out.
 

Patrick

Overthinking the draft from the basement already
Staff member
A friend of mine owned a clothing store with his parents years ago. When they closed, he said it was much more profitable just to have a big sale and sell everything than it was to try to sell the store. Might be the same concept in bicycle retailing.

i would think the best deal would be a transition plan to a key employee - where the goodwill is what is transferred. perhaps a 10year royalty payment that isn't a whole lot, but better than a fire sale. It would also come with some interesting accounting benefits, where the original owner retains some benefit if the shop were to close, so they can claim a loss.

assuming there were consistent clients, and the goodwill was real
 

Dingo

Well-Known Member
This. I looked into buying a shop years ago. Some of the advantages of buying an existing shop are: being able to hit the ground running with inventory, point-of-sale equipment, employees, existing customer base, etc. There's also the value of what's called "goodwill", which includes the intangible stuff, like the name and reputation of the business. One of the biggest expenses in NJ is real estate, whether you're buying or renting. The D&Q guys might own the building and decided to keep it and rent it out as a source of retirement income, or sell it and cash out.
I looked into buying Freehold Bikes, before it closed. Nothing there to buy, reputation maybe, inventory kids bikes. Former employees, nada, I would hire my own.
Owner wanted 300K and would rent the building to me. No thanks. Oh and work 7 days a week...
 

goldsbar

Well-Known Member
I looked into buying Freehold Bikes, before it closed. Nothing there to buy, reputation maybe, inventory kids bikes. Former employees, nada, I would hire my own.
Owner wanted 300K and would rent the building to me. No thanks. Oh and work 7 days a week...

OMG!!! For all the sweat equity that goes into those businesses, no way.
 

stb222

Love Drunk
Jerk Squad
i would think the best deal would be a transition plan to a key employee - where the goodwill is what is transferred. perhaps a 10year royalty payment that isn't a whole lot, but better than a fire sale. It would also come with some interesting accounting benefits, where the original owner retains some benefit if the shop were to close, so they can claim a loss.

assuming there were consistent clients, and the goodwill was real
Honestly though, it has to be a labor of love.

Sure, you show a loss on everything and don’t have to pay taxes, but your not making any money either.
 

clarkenstein

JORBA Board Member/Chapter Leader
JORBA.ORG
i would think the best deal would be a transition plan to a key employee - where the goodwill is what is transferred. perhaps a 10year royalty payment that isn't a whole lot, but better than a fire sale. It would also come with some interesting accounting benefits, where the original owner retains some benefit if the shop were to close, so they can claim a loss.

assuming there were consistent clients, and the goodwill was real

My dad thought about this when closing his hardware store down. You’re giving away the business for free essentially with a slow transfer. Either sell it or liquidate. If you own the building it’s easier to transfer, guaranteed income is rent.
 

Ian F

Well-Known Member
i would think the best deal would be a transition plan to a key employee - where the goodwill is what is transferred. perhaps a 10year royalty payment that isn't a whole lot, but better than a fire sale. It would also come with some interesting accounting benefits, where the original owner retains some benefit if the shop were to close, so they can claim a loss.

assuming there were consistent clients, and the goodwill was real

That is essentially what happened to Guy's Bicycles in Feasterville. Guy sold 1/3 to one manager, 1/3 to another manager, and gave/sold 1/3 to one of his kids (who oddly enough was/is not really a cyclist). One of the managers has literally been there most of his life - since he raced BMX for them as a teen. The other manager moved to Colorado and sold out to the other. The shop has consistently been rated as one of the best shops in the Philly area. I try to split my business between them (I've been going there sine 1982) and Halter's.
 

SmooveP

Well-Known Member
I looked into buying Freehold Bikes, before it closed. Nothing there to buy, reputation maybe, inventory kids bikes. Former employees, nada, I would hire my own.
Owner wanted 300K and would rent the building to me. No thanks. Oh and work 7 days a week...
Yeah, I know the owner. He lives across the street from my GF's brother. He's a super nice guy. Did the $300k include the real estate at that time? I think in the end he was asking $135k for just the business, no real estate.
 
Top Bottom