Sixsixone Canada to Be Shuttered
Triple 7 Group, Inc., a private equity investment firm and parent company of One Industries and Valencia Sport Group (VSG) USA, Europe, and Canada (Sixsixone Canada), has decided to shut down Sixsixone Canada, effective July 31.
Parts Canada will take over the distribution for Sixsixone, Sunline, Tag, Filtron, Renthal, and Pro Circuit effective Aug. 1. Gamma Sales will handle Fly Racing and Mechanix Wear. Gaerne will also have a new distributor, but they will be announced at a later date. Mechanix Wear Canada, Inc. is a completely separate unrelated entity and is not closing.
Rick Sheren, managing director of Sixsixone Canada, says Triple 7’s reasons for the closure are the relative small volume of business and low return on investment compared to the amount of receivables and inventory necessary to operate, as well as the volatility of the Canadian dollar and the current economic climate.
“While I don’t agree with this decision, sometimes tough decisions must be made and since I no longer own the company, it was not my choice,” Sheren said in a letter to dealers. “Also, please note that we are not going bankrupt or into receivership, and we are not being forced out of business. As a matter of fact, the company is profitable and has enjoyed record sales since January, but Triple 7 is restructuring and downsizing many parts of its’ operation. This is a voluntary closure, and all current accounts payable will be paid accordingly.”
Triple 7 Group, Inc. is a unit of Los Angeles-based Riordan, Lewis & Haden (RLH) Investors II LP. RLH says it initially invested in Triple 7 Group to provide growth capital.
RLH claims to have more than $400 million in committed capital under management and says it prefers to partner with existing CEOs and leadership teams. The organization targets middle market businesses with annual revenues between $20 and $250 million, positive earnings with 20 percent growth potential, and investment opportunities requiring $10-$50 million of equity capital.
- Submitted by Guido Ebert
Parts Canada will take over the distribution for Sixsixone, Sunline, Tag, Filtron, Renthal, and Pro Circuit effective Aug. 1. Gamma Sales will handle Fly Racing and Mechanix Wear. Gaerne will also have a new distributor, but they will be announced at a later date. Mechanix Wear Canada, Inc. is a completely separate unrelated entity and is not closing.
Rick Sheren, managing director of Sixsixone Canada, says Triple 7’s reasons for the closure are the relative small volume of business and low return on investment compared to the amount of receivables and inventory necessary to operate, as well as the volatility of the Canadian dollar and the current economic climate.
“While I don’t agree with this decision, sometimes tough decisions must be made and since I no longer own the company, it was not my choice,” Sheren said in a letter to dealers. “Also, please note that we are not going bankrupt or into receivership, and we are not being forced out of business. As a matter of fact, the company is profitable and has enjoyed record sales since January, but Triple 7 is restructuring and downsizing many parts of its’ operation. This is a voluntary closure, and all current accounts payable will be paid accordingly.”
Triple 7 Group, Inc. is a unit of Los Angeles-based Riordan, Lewis & Haden (RLH) Investors II LP. RLH says it initially invested in Triple 7 Group to provide growth capital.
RLH claims to have more than $400 million in committed capital under management and says it prefers to partner with existing CEOs and leadership teams. The organization targets middle market businesses with annual revenues between $20 and $250 million, positive earnings with 20 percent growth potential, and investment opportunities requiring $10-$50 million of equity capital.
- Submitted by Guido Ebert
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