Not The Chain Reaction They’d Planned

 We love to patronize our favorite local bike shop.  But I—and I am sure many of you—have bought stuff from an online retailer (or their predecessors—mail-order catalogues—remember those?) oh, once or twice.

One of the local dealers I patronized (until it wasn’t so local for me anymore) said he couldn’t blame people for buying parts from Performance or Bike Nashbar.  “Their prices are better than what I can get from my distributor,” he lamented.

Performance and Nashbar are in the tire tracks of history.  Now,’it seems, two more recent giants the online bike business may join them.

In 2016, Chain Reaction Cycles, based in Belfast, Northern Ireland and Wiggle, in Portsmouth in England’s south coast, merged. At the time, to join two companies that were already offering good deals on in-demand bikes, parts and related items into one that would have even greater buying power and would therefore offer even better deals to customers.

But another event that same year would contribute to the company’s current situation: the vote to secede from the European Union, a.k.a. Brexit. (Scotland voted to stay.) The “divorce” was finalized, if you will, at 23:00 GMT on 31 January 2020.

One effect has been higher tariffs, not only on imports to, but also exports from, the UK.  The latter included, in the years before the “breakup,” many orders from outside the country.  They included customers from EU countries—and, on a few occasions, yours truly.   American customers didn’t have to pay the Value Added Tax.  So, when the exchange rate was favorable to the dollar, I purchases not only Brooks saddles, but also French Mavic rims and Velox rim taped, Swiss DT spokes, German Continental tires and even Japanese Shimano cassettes for considerably less than I could have bought them Stateside.

The UK-EU split came early in the COVID pandemic. So, some of the losses Wiggle-CRC incurred from prices increasing for European customers were offset by the COVID bike boom.  That “boom,” however, seems to be going bust.  At least, people aren’t buying as many bikes and parts as they were three years ago.

According to industry insiders, Wiggle/CRC’s parents company, Sigma Sports United is “re-structuring” —which includes, among other things, ending its relationships with “underperforming assets” like Wiggle/CRC—and therefore de-listing from the New York Stock Exchange.  Those same insiders are saying that Wiggle-CRC has stopped paying its suppliers and intends to file for insolvency.

From what I’ve been reading and hearing, they’re not the only ones who have “buyer’s remorse” over Brexit.

This Blog, Explained

 Here is an illustration of the philosophy of this blog—and an explanation of its title:

He Gave The Kids Bikes. His Reward: His Shop Was Torched

 Even if I’ve grown more cynical about the human race—which is an occupational hazard of being in, ahem, midlife—I have continued to believe that bicycles and bicycling can bring people together.  After all, I have seen people from almost every set of circumstances imaginable on bikes.

And, although I have neither had nor wanted children, I believe that people and societies are no better than how they treat children (and old people)—and those who try to help them.

So, one bit of news out of Taibe, an Arab Israeli town, shocked and saddened me.

A week ago, Alaa Amara was asleep, with his phone silenced. One could understand if he wondered whether the news he received after walking was a bad dream.  Of course it wasn’t—but he wasn’t surprised.

A few days earlier, Amara, an Arab Israeli who owns a bicycle shop, decided to help evacuees from Gaza-adjacent communities. He told the Times of Israel that his friends “gave them items, food, they had what they needed.” The children, however, “didn’t have anything to do, no school,” he noticed.

So he brought a donation of 50 children’s bicycles. “I did it to benefit the children. They don’t know about war,” he explained.

Images of him delivering the bikes appeared on social media. They won Amara a champion in Yosef Haddad, an Arab Israel commentator who is pro-Israel and therefore controversial, to say the least.

Oh, and the children are Jewish.  That, and Haddad’s endorsement, put a target on Amara and his business.

Which is why the news he got last Saturday didn’t surprise him:  While he slept, his shop was torched.

A friend has set up a Pay Pal account and a crowdfunding effort has raised, so far, 550,000 Israeli New Shekels (about USD 137,000). Amara estimates damage at NIS 800,000 and he had no fire insurance. So, while donations could increase, he doesn’t know what he’s going to do next. If he opens another bike shop, it will be elsewhere, he said. “I am afraid to be in Taibe now,” he said.

(N.B. Please do not take anything I’ve written as an endorsement of one “side” or another in the conflict.  As Alaa Amara and his situation show, the background of the conflict is too complicated to be reduced to “sides” and has as much to do with colonialism, from outside as well as within the region, as any current grievances.)