A Short History of Schwinn: In 2022 Pon Holdings Purchases Schwinn

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schwinn bicycles

The first hand built bikes used the geometry from the early Schwinns as well. Despite all this “history”, Schwinn did not pick up on the mountain bike trend and many feel it was a major contributing factor to their bankruptcy. If you check out the specification sheets below you will notice that the early Schwinn bikes were Varsity type “gas-pipe” frames with limited gearing, one-piece cranks, super high-rise handlebars and caliper brakes. These were not specs that would excite a mountain biker and made the bikes best suited to town or beach riding. Starting with 1985 I am just listing from the Sierra model and up.

The additional line, known as the Signature Series, featured on their website, are higher-end models marketed through specialty shops. Its bike lines include cruisers, road, hybrids, urban, kids, and electric. Ignaz Schwinn emigrated to the United States in 1891 and make profit from the late XIXth century’s bicycle boom to create a successful bicycle manufacturing company with an American partner, the Arnold, Schwinn & Co.

The turn of the century and the start of the automotive era saw a wave of consolidations in the bicycle business, out of which Schwinn emerged weakened – but even more ambitious. Various takeover made Schwinn one on the big players, and retailing through mass merchants allowed the Chicago-based company to achieve big sales. In 1928, the in-house brand for motorcycles that had been acquired in 1912 and 1917, Excelsior-Henderson, even ranked 3rd in the national motorcycle industry. Schwinn fielded a mountain bike racing team in the United States where their team rider Ned Overend won two consecutive NORBA Mountain Biking National Championships for the team in 1986 and 1987. Schwinn’s new competitors such as Specialized and Fisher MountainBikes were soon selling hundreds of thousands of mountain bikes at competitive prices to eager customers, setting sales records in a market niche that soon grew to enormous proportions. By the mid-1970s, competition from lightweight and feature-rich imported bikes was making strong inroads in the budget-priced and beginners’ market.

After a series of 1980s missteps in part caused by the globalization of the bicycle industry, the Schwinn Family Business filed for bankruptcy in 1992. The company was purchased by a venture capitalist firm named Zinn-Chilmark in 1992. The venture capitalists knew nothing about running a bicycle business and in 1997 sold Schwinn to Questor Partners Fund.

The District Court rejected the charge of price-fixing, held that the Schwinn franchising system was fair and reasonable, but that the territorial limitation was unlawful per se as respects products sold by Schwinn to its distributors. The United States did not appeal from the rejection of the price-fixing charge, and appellees did not appeal from the order invalidating restraints on resale by distributors who purchase products from Schwinn. A growing number of US teens and young adults were purchasing imported European schwinn bicycles sport racing or sport touring bicycles, many fitted with multiple derailleur-shifted gears. Schwinn decided to meet the challenge by developing two lines of sport or road ‘racer’ bicycles. One was already in the catalog — the limited production Paramount series. As always, the Paramount spared no expense; the bicycles were given high-quality lightweight lugged steel frames using double-butted tubes of Reynolds 531 and fitted with quality European components including Campagnolo derailleurs, hubs, and gears.

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