The core of today's problems clearly lies in Cannondale's decision to enter the motocross business with motorcycles developed in-house. The construction of the corresponding factory took place between 1998 and 2000, when the ruble was still rolling smoothly in the bike business and at Cannondale in particular. However, quality and acceptance problems then repeatedly delayed the initial delivery of the bikes, while the costs continued to add up: Cannondale paid for every bike sold and the balance sheets took on an increasingly alarming red tinge. In the end, hardly anyone was prepared to send parts to the Americans without paying in advance.

The way out is "Chapter 11": According to American business law, a company can apply for temporary creditor protection on its own initiative in order to establish a new financing basis and a new business plan. In Cannondale's case, company founder Joe Montgomery will sell his shares to the investment firm Pegasus Partners, which will then look for a buyer for both the motorcycle and bike production. In the meantime, business will continue as normal and a bridging loan will be used to cover ongoing operating costs. Incidentally, Cannondale's subsidiaries in Europe, Japan and Australia are not directly affected by these events.