We like Sombrio (in principle) and Dave Watson. We’ve liked Dave Watson since that clip of him pedaling through a drifted turn in Ride To The Hills on a GT DH-i. So it sucks to see his business smashing against a wall.
Sombrio always seemed like a good little company that offered non-moto gear for mountain bikers who could shred, but were not really racers or racer-fan-boys and that was a great niche to fill. But notice how they were just described as a “good little company”… I know all businesses want to grow but what snake oil salesman waltzed up into Sombrio saying, “Hey, listen here. Great news. The world economy is back, baby. And it’s back in a big way! People got money pouring out of their wallets, and you got the moxy to pick all of it up! I’m talking explosive growth, tootsie! It’s high time that Sombiro had some physical retail stores by-golly. Here, look at this graph of projected money over time and notice how as time passes, money shoots to the moon, kiddo! Look, I even had to add a piece of extra paper to the top of the chart because the line on the graph has shot up through the roof of the poster board. We’re gonna be rich, I tells ya!”
And then the part that sucks is someone at Sombrio said, “You know, this is different to Enron of Herbalife… We’re in!”
Have we not seen this story before? Do Brockway, Ogdenville, and North Haverbrook ring a bell?