Sierra Snowboard Bankrupt?

It’s been a few months since the hell fires of Sierra Snowboard Vs Burton made waves across the internet fueling the much heated debate about who was in the right and who was in the wrong. Some sided with Burton others with Sierra, but one thing was certain when this all went down that there would be repercussions down the road. Now much like the original rumors spun by the crew from Sierra Snowboard there’s a whole new slew of ones popping up only this time it’s not from their end.

Now if everyone remembers Sierra Snowboards staff started spouting out rumors how Burton was this Goliath of a corporation and pulling their buying agreement because it’s so evil and Sierra was this poor little “mom and pop” shop that only marked down their product more than every other retailer. While actually admitting they were wrong they still felt the urge to propagate rumors about how Burton was going to become a “luxury” brand (a rumor that seems to have stuck) and how Burton was slowly cutting off the heads of its biggest online retailers in a hopes to streamline their direct sales. During all of this no rumors from Sierra were ever denied by Burton.

Shortly there after Jarden pulled out from them thus taking away all the companies under its umbrella. The interesting thing with that was there was no big show saying how they were evil or trying to create a “luxury” brand. Actually there wasn’t even much of a real mention amongst their community. Evidently having one public ousting that didn’t go as much in their favor as they wanted was enough to take some cues and lick their wounds in private.

Now fast forward from then to our present time, some fishy things have started happening over in the land of patio and snowboard gear. So it seems one of their local community members and I don’t mean of their online variety tried to go to the Brick and Mortar store this past week, only problem was it was closed. Now some might say it was just part of their plan to move from warehouse from the current location to the new one. Yes, that would make sense right up there with closing the store for inventory. But as mentioned some fishy things are afoot. As one of their members mentions in this thread you can’t find any reference to the physical store location. Even their shipping address has changed to a new location in Rocklin instead of listing the one in Sacramento. Googling pulls up the old address and local phone number, but if you look on the site this number isn’t listed.

Now sure there might be a highly logical reasoning for all this, but the thing that’s a bit off is that the original thread asking about this was posted on the 5th here we are on the 9th and not one of their employees have answered to what’s going on. Which is highly suspect considering that their people are usually right on point to stop any form of dissension on their online forum. Even still is that if you check their facebook you can see that the concerned patron of their establishment has gone unanswered since Sunday. Now a rumor coming down the grapevine is that they filed for chapter 11 bankruptcy. Which could potentially cause a bit of a gag order with their employees and keeping their community in the dark till the matter becomes public knowledge. This would definitely explain the lack of communication going on.

If your shop lost it’s biggest supplier making up somewhere around 50% of your inventory that’s a huge hit, then if you suddenly lose the second largest corporations plethora of brands taking another 20% or so you’ve effectively shot yourself in the foot. Add to that a new warehouse facility that’s twice the size of the current one and there’s more over head. On top of that the increased interest from the industry on what was going on with their little temper tantrum. Perhaps their golden age is completely over? Or perhaps these are just unsubstantiated rumors with a logical answer behind them?

Causes controversy!

Latest posts by Angrysnowboarder (Posts)

43 Comments

  1. lizz says:

    you know, i forgot til now. but, i remember when you called them, the auto system said press 1 for online.. 2 for our sacramento store.

    it no longer does that either.

  2. […] This post was mentioned on Twitter by shredunion.com, Todd Canipe. Todd Canipe said: Good riddance. RT @ShredUnion: angry's POV – Sierra Snowboard Bankrupt? http://bit.ly/d0KOOT […]

  3. David Z says:

    the FB page lists a new phone number… same # listed on the footer of their website.

  4. Pretty sure that’s the new number to the Rocklin warehouse.

  5. […] on the street is sierra's bankrupt. The Angry Snowboarder Blog Archive Sierra Snowboard Bankrupt? __________________ Angry Snowboarder Because someone has to call it how they see […]

  6. David Z says:

    gotcha. some ppl are saying that they’re closed for a few weeks for inventory – in that case maybe they take down the phone # from the website to discourage people from calling the store? IDK, that seems like customer service fail to me…and that’s really the best-case scenario for SS right now.

  7. […] Angry Dude in Colorado speculates that Sierra Snowboard might be on the verge of (or possibly, already filed for) bankruptcy. […]

  8. Hoon says:

    Chicken or egg?

  9. Jake says:

    With how popular that site is I would find it hard to believe they went out of business, but who knows. I guess we’ll all know for sure in a couple weeks.

  10. CittyKat says:

    Wouldn’t they have to wait till next season for the full effect of the Burton dropout to affect them? As of right now, they seem to be coming off an amazing year where their community and sales have increased exponentially. Maybe next year, if they aren’t able to pull some good brands in and then they have poor money management, MAYBE they may be in trouble, but as for now, this seems to be a huge stretch, even for you Angry Snowboarder.

  11. terryterryhibbert says:

    urge to propagate rumors about how Burton was going to become a “luxury” brand

    ^^ I seem to remember that was a direct quote from Clark Grunloch (apologies for spelling can’t be bothered to google) claiming how Burton see themselves as a luxury brand.

    their people are usually right on point to stop any form of dissension on their online forum.

    ^^^ From what I read when the whole Burton thing kicked off rivals shops/people with grudges that was allowed to stay on the site. From what I’ve seen, they seem to let opposing views have their say, but that’s just my opinion/memory.

    Not sure what the situation is with Sierra but you would assume (or at least I do :) that given how successful they appear to be online that a B&M store would only be a small part of their revenue stream with a massive overheads it would make a certain amount of business sense if they had closed it.

    But, as the main point gist of the thread says – nobody knows for sure until we hear something concrete from Sierra.

  12. Tru says:

    I was there about a month ago and they were opening the shop back up 100% to what it was a couple years ago with the entire building being able to walk through and shop. This year they had only about 20% open for customers to walk through and buy something, with the other 80% as customer service in cublicles and inventory. I asked the shop employee what was going on when I checked out and they said that they were opening back up the space they had before for local customers and moving the rest of there inventory to a new warehouse for on-line services ( I didn’t ask where), but it appears they’ll have 2 locations to work from now is what I took from it.

  13. Dazma says:

    New quote from someone on the Sierra site

    “I have always bought from the Sac store and never from the site so I tried to go there last week and they were closed. I was at a shop in the foothills about 30 miles from Sierra on Monday and a sales rep, a former Sierra employee who was applying for a job, and a store salesperson were talking. The former Sierra employee said almost everyone just got laid off and the retail store is not reopening. The big topic was that Sierra had refused to pay Burton so Burton filed a “multi million dollar lawsuit” against Sierra. Sierra filed Chapter 11 bankruptcy last week to get them out of the lawsuit and other brands they owe money to that pulled out. He mentioned far more brands that pulled out other than Burton and K2.
    The sales rep said the bankruptcy was confirmed by the lawyer for the company he was with. The rep seemed really reluctant to talk about it so I don’t want to mention the brand he was with. “

  14. lizz says:

    nobody ever saw proof that the burton guy said that. just someone that is an expert member for sierra giving out lip service to the masses on their site.

  15. I’ll address some points here due to the fact people think I’m talking out my ass as if I’m stating a fact, I never stated a fact it’s just rumors and observations and that something could be happening. Now the fact that some certain individuals decided to interpret it as if I was stating things at face value is their fault for being mentally deficient. The big thing to realize is there’s more questions than answers.

    But once again it’s another day that has gone unanswered from Sierra. How hard is it to even just do a mass email stating that the store is closed, that they’re moving, or even heaven forbid answering a post on their overly large online community? Great customer service eh, my ass! Anyone see my point here? Darkness all around and the fanboys will be fanboys and the haters will be haters, and I’ll continue to just listen to my sources that haven’t been wrong yet!

    Terry did anyone from Burton actually ever give any real proof to the claim they’re a “luxury” brand? Cause I could never find anything true about that, anyone I asked from there couldn’t confirm that, and technically isn’t every snowboarding brand a luxury? I mean come on we pay a lot to slide down snow even if using cheap pricepoint entry level crap. So lets think about that logically.

    Shittycat there’s no stretch here everything I presented is pretty damn logical in thinking especially since I have 13 years snow retail experience and have seen shops pull the same thing they’re doing. Hell my last shop I worked at pretty much parallels this scenario. Mid season we got our Volkl/Technica/Marker account pulled, they took all inventory that wasn’t sold back, we then threw the biggest private rail jam event in downtown Breck HUGE turn out everyone myself included thought shop was doing awesome, end of may I go on vacation come back, shops locked and closed I figure Easter Sunday fine they’re closed but no one told me, go in to work next day poof I’m laid off, 5 days later rest of the staff is laid off, day after store is closed till May for inventory and flip, end of May hits the intern sends me a text that there’s a notice of default on the door, shop files for chapter 11. Whole time this was going on my staff, myself, and the town were all told things are cool we have it all figured out don’t worry you have a job blah blah blah. Had another similar scenario happen when I lived elsewhere with another shop I worked next to.

  16. The Intern says:

    It kinda makes sense not to warn people of stuff like this and create havoc and nervousness. Just lock up the doors and that’s that.

  17. noneedforaname says:

    Angry,

    Since I’m one of the people who accused of talking out your ass – let me at least give you the courtesy of telling you why.

    First and foremost – the first three paragraphs of this article really don’t even need to be here. You kind of set up this shadowy ‘something’s going on in the world of sierra/burton’, but then never really tie it to anything. What does this have to do with the rest of the article? Did Sierra move because of the Burton/K2 problem or what?

    Next, you jump into “fishy things” going on re: a move to a new warehouse. Okay – yea, some of that is weird. How is this related to the Burton/K2 problem stated above?

    Finally – you jump into “word on the street is chapter 11″. Okay, great – tie it all together? What exactly are you trying to say?

    You have 3 distinct trains of thought here – Yet you don’t really seem to have any coherent way to tie them together. I’ll grant that you have your ear to the ground, and there’s a a history of getting some bits and pieces of information correct.
    But with this one it seems like you’re just taking random disconnected bits and pieces and just throwing it to the wall to see what sticks. That is kind of the definition of “talking out one’s ass”.

    That’s not even getting into the assumption about sales numbers. For all you know – Burton was 99% of their sales, and the K2 issue doesn’t even matter – because they were screwed as soon as the Burton mess went down. In that case – not only is K2’s “20 %” totally irrelevant, it’s not even 20%…

    If you simply came out and said “I heard a rumor sierra filed for chapter 11 protection….” that would be something interesting. When you throw a whole collection of disconnected thoughts out there at once, and try to make something out of connections that just aren’t there – your credibility comes into question.

  18. Let me break this down for you since you can’t grasp this. The first three paragraphs set up the tone, the past events, the fact that Sierra tried to use rumors in their favor and that there’s now other rumors being heard, and that the previous events would have repercussions down the road. It is not my fault that in your fired up rage you misinterpreted this. The people that interpreted this right seemed to grasp this simple concept.

    Burton always makes up 50% of every shops inventory it’s how their buys go and how they make shops spend their budget. It has been this way for as long as I can remember. Think about this walk into a shop and see how big the Burton selection is compared to others whether it’s soft goods or hard goods it makes up a huge percentage, plus I was told by an “expert member” thats in the know that it was actually 52% of their business. Now the number for Jarden comes not from the K2 or Ride lines but K2 skis, line, full tilt, nitro, raiden, volkl, technica, and what other brands there are. Yes Nitro does fall under Technica which falls under Volkl which is under K2. Most people don’t realize this. Now try to tell me that coming from all sides ski and snowboard that’s not relevant, you can’t? So while yes the Jarden figures are estimated you can clearly see that in this sentence “you suddenly lose the second largest corporations plethora of brands taking another 20% or so” hmm that or so doesn’t make it out to be an exact amount. But once again you’re the one that just went with the idea I was stating that as a true fact when I just used it as an example.

    I’m glad you can see that some of the things are horribly fishy. Because it definitely is. Did you not read the part in the first paragraph where I said there would be repercussions from the Burton fiasco? This potentially could be part of those repercussions. Links together pretty simply now that I’ve just put it right out there for you. Fuck maybe I should just write at an elementary reading level and use a size 24 font with quadruple word spacing.

    And yes I did hear a rumor they filed for chapter 11 bankruptcy, in fact I heard it was due to the whole Burton deal but I figured that most people wouldn’t be so incapable of not connecting the many obvious plot points I put into this little post to a conclusion. Is it my fault that you as one person couldn’t comprehend what was written? No, it’s not I merely delivered the message, covered all bases from the past events, rumor spin, present events like the warehouse move, site changes, and no one talking.

    Let alone Chapter 11 bankruptcy doesn’t mean they’re done yet. It just means they’re getting protection and might just roll this all over into a new company. Which guess what Mike Horash and family have done this before look up the lawsuit between Tri Cities and Levi’s and how that panned out. Might open your eyes up bucko.

    And if you’re going to come back with a retort about how I didn’t check into the filings or anything. Like I mentioned above it will eventually come to the light i.e. public knowledge, plus unlike some people that sit in a cubicle at a job they hate, I have shit I need to do during the day and don’t have the luxury of expending as much time as I could to investigate what’s going on in California. Cause you know what Sierra is a shitty shop and if it disappeared no one would care except for the mindless sheeple that have bought into the hype machine of Sierra. I can’t blame them for being butt hurt if they do go under no more free boards, 50% off on inline product, and a forum that lets them be famous on the internet.

  19. The Intern says:

    “and a forum that lets them be famous on the internet.”

    haha, but not as famous on ze internwebz as you!

  20. noneedforaname says:

    Wow it must be great to be “right” so often.

    good for you big guy. ;)

  21. The Intern says:

    For some one who touts themselves as not being an SS fanboy you sure are going out of your way to defend them and try and make Angry look bad.

    BTW, you don’t need to try and make him look bad, he’s ugly enough as it is…

  22. lizz says:

    that’s true. he scares small animals and children.

    picture it:

    carrot top meets liza minelli meets bam margera.

    i assure you, nightmares will be had.

  23. Nah dude it just must suck to be you and be a brainwashed sheeple. You said what you did to instigate a pissing match, you didn’t get the response you wanted. It’s not my fault you suck.

  24. noneedforaname says:

    I said what i said out of a legitimate courtesy. Clearly you were responding to things that I (and others) said, and I figured if you were going to address it – it was at least fair to address it directly.

    Do I think you’re wrong? Partially yes. The fact that you quoted an “expert” member as one of your “reliable sources” kinda proves to that to me.

    Brainwashed? hardly…

  25. noneedforaname says:

    Also intern – there’s a big difference between defending sierra, and pointing stuff that just isn’t right.

    I don’t agree with some stuff sierra does (or has done in the past). I think Mike and Sierra will have to deal with that at some point or another – and that’ll be their problem. I also don’t think that should give people license to just spew crap they get from “experts” without being called on it though.

    Angry calls it how he sees it. Okay, so nobody else is allowed to now?

  26. The Intern says:

    FYI, it’s The Intern… lol

  27. lizz says:

    i can call it. WHO CARES! I want it to be a patio store again. I want good deals on Patio furniture dammit!

  28. Say what you want about courtesy or that you aren’t brainwashed. All one has to do is look at how adamantly you’re defending Sierra and the lengths you’re going to try and prove me wrong because you can’t comprehend my writing style. In the end you wanted an online pissing match and you got one and it’s not going in your favor. And yes I did get some info from an “expert” member of theres along with stuff from other industry insiders. But I tell you what when the people I get my info from are people I see face to face I’ll tend to trust them more than a fanboy that’s just pissed he’s not getting 70% off gear anymore. Now go play the bitter ex employee card, if you were truly bitter you’d have walked away from them a long time ago.

    Also what license do I have? What the 10 bucks I paid to buy a domain name? Seriously man that’s the beauty of free speech and web 2.0 anyone can be a blogger, anyone can write, and I guess any douche that wanted to could claim themselves as a journalist could. Personally I’m going with wordsmith it just sounds better than journalist, which frankly I am not one to begin with and no blogger should ever claim themselves as one.

  29. Lou G. says:

    @CityKatt, They can pull in all the brands they want, but they’ve already lost the ones that the majority of their customers have heard of and want to purchase. Not to mention smaller board companies don’t have the resources to let Sierra fuck them and their distributors over with enormous discounts.

    @noneedforaname, Don’t forget to dog angry 5 points for grammar! Hahaha, seriously what the fuck is this an English class? Really simple: Sierra lost a huge chunk of their products, YET, Sierra is supposedly moving to an even bigger warehouse, AND their store is shut down, AND even though Sierra isn’t having any trouble communicating via Facebook and their forum, NOBODY is responding to questions about what’s the deal. This article poses the question, “Perhaps Sierra is bankrupt?”

    Anyone who has ever been laid off knows that when a company is purposely ignoring questions about their viability, it’s almost never a good thing.

    Lizz has it right anyway, who gives a shit about Sierra? “Oh no! Sierra closed and now I have to buy locally. I have to actually pay for snowboard gear and support the industry for once!”

  30. The Intern says:

    Wait, Lizz is right? This world is in a hear of trouble…

  31. lizz says:

    Oh shut the fuck up Intern. when are you just gonna accept the fact that I am cooler than you.

    yea, that’s right. i went there.

  32. The Intern says:

    you may be cooler, but i look cooler, and thats all that matters.

  33. lizz says:

    have you looked in a mirror lately? you may wanna rethink that statement…

  34. Dazma says:

    10 Days and still no sign of life on the SS forums from any Staff
    Angrysnowboarder the prophet has spoken …..
    So let it be written ….. So let it be done
    SS RIP

  35. […] Angrysnowboarder пишет: Even still is that if you check their facebook you can see that the concerned patron of their establishment has gone unanswered since Sunday. Now a rumor coming down the grapevine is that they filed for chapter 11 bankruptcy. …. Mid season we got our Volkl/Technica/Marker account pulled, they took all inventory that wasn’t sold back, we then threw the biggest private rail jam event in downtown Breck HUGE turn out everyone myself included thought shop was doing awesome, … […]

  36. […] I had received a rumor from numerous sources that they had declared bankruptcy and promptly made a post about it. In that time people from Sierra Snowboard to Easy Loungin had been talking about this […]

  37. No One Got Shot says:

    So, Sierra, who buys a massive amount of goods (wholesale and closeout )from all brands,has dumped a more than sizable fleet of product into the Australian and New Zealand markets, not just Burton but all their brands. The truth is, this will likely kill off some retailers and possibly even distributors (reps) for a great number of brands.
    They wouldn’t peddle it into that market unless they were in dire need of money. The shipping bill alone is enough to give you a nosebleed. Granted the retail value per product in the Southern Hemisphere is greater than North America, but brands or shops will typically invest in their market, in Sierra’s case the USA in a retail channel, before targeting another through the wholesale channel… half way around the world unless they’re desperate.

  38. Pretty much every company has regionalized buying agreements. It’s why originally Sierra wouldn’t ship anything to Canada, then they said fuck it, then they decided to say fuck it and ship internationally. The thing with Sierra’s business plan is its a divide and conquer kill everyone strategy which is nothing more than a kamikazee death strike against all stores regardless if they’re small b&m’s or big online warehouses. Their goal was to destroy every shop by undercutting till there were no shops and they were the last ones standing, what this does though is makes companies look at them and say well why do we need them or shops in general when we could just sell factory direct.

  39. ipps says:

    Its a good question, and what with internet buying booming, it’s probably fair to ask why manufacturers dont do that? I know its a subject thats beaten to death (what does retail bring to the customer that justifies their cut), but its a really big question when youre talking about international board prices.

    When we look at the US we are really wondering why our board prices arent even in the same ballpark. If i can ship a board here from the US pay for shipping AND pay for import duty, then why is it still cheaper than buying it direct from retail? Shouldnt i, as an importer of a single product be paying quite a lot more per board for shipping and duty, considering im also paying full US retail on it and not in fact getting it at a manufacturer sales price (whats that, 40%?) How is that even possible that without getting any discount or deals from bulk, im still undercutting the price of my board in Korea? Bizarre youd think.

    Then chuck in the fact that my limitations are burton, k2, and mervin (and aside dogfunk which also has arbor), i can buy any other board on the planet legitimately without any violation of the regionalized buying agreement (i assume thatll be why k2 are also ‘rumoured’/very likely to be pulling out of sierra and why mervins run is going to be very small and with very restricted agreements if they stay). So it seems not everyone does have an agreement that specifically blocks sales outside the US (unless of course ALL of those retailers are flouting their agreements, which im sure isnt the case).

    Throw all this together and you can see that even if they played ball and worked under the same practices of backcountry et al, that still leaves a fair few companies to play with, so theyd be daft not to make a move into these markets. The fact they also have decks which are made specifically for them that have absolutely no price/export restrictions would also mean they should push to try and sell these decks to those markets. Its not really just about a run for money, as you say they also have a clear idea of what they want to do.

    Even if it is a cynical slash and burn strategy, and even if it seems totally assholeish to other retailers, you can bet that theres a lot of people suddenly stoked that they can get a decent deck way cheaper than they could 2 years ago. I mean, WAAAAAAY cheaper. Im not just talking 50 bucks here. Something is clearly amiss if someone can undercut your domestic market by almost $300-$500. It shouldnt really happen. Part of it is sierras pricing policies of course, but a big whack of it is that board prices outside the US are far higher than they should be and are kept there solely due to the power of these regionalized buying agreements. Even with their pricing (and remember everyone else is also running the 40% sale right now), the undercut should be marginal, in fact it shouldnt exist when you factor in shipping and import, but its still huge.

    It could be that its not the retailers fault, it could be that burton and the like sell their boards at 40% MSRP for international markets instead of the same 40% domestic ($320ish international at an $800 MSRP (or 850,000won where im from) per deck versus $200ish in the US). So naturally the mark up is passed to the customers. But the question is why should I be subsidising their arbitrary mark up? Its hard for people from the US to understand, but international customers do feel a bit ripped off when we see the prices you guys pay. We understand a bit of an increase in costs for taxes and shipping, but if im paying full retail, paying full shipping, and paying full import duties (20% in korea on any item over 150,000won – $150aprox), then its nothing short of outstanding that im still undercutting retail in my own domestic market by quite a significant margin. In fact i’d suggest its ridiculous.

    PS. This isnt about Burton. Im talking about selling a deck even if you play by the same export restrictions of retailers like backcountry rather than sierra. Its honestly daft that they havent moved into the international market. Building an internet business based on sales from a specific IP addresses seem mental. They have a lot of power on shipping prices, they also arent even liable for the import duties. Even if its only on brands that dont have those restrictions, its a no brainer. You vastly undercut the domestic market, so really, why wouldnt you?

  40. Mike Waggoner says:

    The large Sierra snowboards logo that was visible on the side of their building from Hwy 80 has been painted over and their are for lease signs up on the building.

  41. nakia eyraud says:

    Wow. I am very late to the party, but I think there is still alot of fall out because of this. I think I just got modded from the “community” for commenting on an old thread about SS and a BMB local. Ouch! Can we all just get along?

  42. Mike says:

    They are called TruSnow now????

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