As the week started, early warnings began to fill blogs, consumer media, and business media outlets covering the global cycling market that venture-backed online used bike reseller TPC, fka The Pro’s Closet, was in trouble and would likely be unable to make it as a going concern for too much longer. The retailer promoted deeper-than-usual discounts on bikes and gear as end-of-season sales, but when the company’s website went live on Thursday, September 26, it was clear the end of the business had come for its 18-year effort to make cycling accessible for all. After serving the needs of over 160,000 consumers and selling over 46,000 bikes, the company decided to close its doors.
TPC must be remembered as a pioneer in the gear resale market as the trend in sustainable business best practices continues to be tweaked by other online and brick-and-mortar companies via single-brand and multi-brand efforts.
“The Pro’s Closet was founded by Nick Martin to help professional riders sell their bikes and gear, but they also sold new, prior-year products,” said Pinkbike, an Outside online publication. “They announced an End-of-Season Sale earlier just over a week ago with deeper than normal discounts on bikes, wheels and gear. It stated that all sales were final ‘because they’ve been marked down so much,’ but it turns out that it was a precursor to their Going Out of Business Sale.”
A press release on Thursday, September 26, explained the unthinkable when the company’s journey started: It Was Over.
“After 18 remarkable years of serving the cycling community, The Pro’s Closet (TPC) will close its doors in October. Since our founding, we’ve had the privilege of helping over 160,000 customers find their perfect ride and have sold more than 46,000 bikes. It’s been a hell of a ride, and we couldn’t be more thankful to the customers, employees, and vendors who made this journey possible,” the company said in a media release.
“This has been an extraordinary chapter in the world of cycling, and we’re incredibly grateful to everyone who has been a part of it,” said Jonathan Czaja, CEO of The Pro’s Closet, in the statement. “From our dedicated team to the loyal riders and industry partners, your support allowed us to grow and create a lasting impact. While this is the end of the road for TPC, as it operates today, we are proud of what we’ve accomplished together.”
The statement continued, ” TPC began with a vision to make cycling more accessible by offering a better way to buy and sell used bikes while becoming the first true ‘certified pre-owned’ bike offering in the cycling industry.”
“Over the years, we’ve remained committed to providing exceptional service and spreading the joy of cycling. As we close this chapter, we reflect on the community we’ve built and the countless miles our customers have ridden,” the company said. “Because at the end of the day, Bikes make it better—and we still believe Bikes are meant to be used.”
Escape wrote on its site that “The ‘End of Season Sale’ on TPC’s website had been re-branded as a Going Out of Business sale.
The Pro’s Closet, founded in 2006 as an eBay store, expanded far past its humble beginning as it pioneered the first ‘certified pre-owned’ online sales model in cycling. But over-expansion and broad industry headwinds after the pandemic-era bike boom helped seal its fate. As Czaja’s statement alluded, it’s possible a buyer will be found and the business revived at some point, but in the immediate term, dozens of employees will lose their jobs in the closure.”
The Re-Brand
As reported by SGB Media in March 2023, The Pro’s Closet had rebranded as TPC with a new logo, color palette, and revamped website. At the time, TPC said it remained “the world’s largest and most trusted brand for buying and selling pre-owned bikes.”
“Cycling is constantly evolving,“ said General Manager Paul Calandrella at the time. “From our early years on eBay to our work pioneering the industry’s first certified pre-owned program, TPC has always been at the forefront of changing the way that cyclists buy and sell bikes. Our logo might be changing, but our commitment to leading the way for a circular bike economy is as strong as ever.”
Over $90 Million Invested?
The last eight years have also included significant investments and a vision for the future of the TPC business. But investors also come with a timeline for return, and for most in these early-stage ventures, it is a five—to seven-year horizon for assessing return on investment. When approaching the end of the year, investors need to look at their gains and losses and rebalance portfolios to limit tax implications for their firms, partners and investors.
The company raised its last tranche of investment in January 2024, closing a $5.5 million round that brought the total investment raised at the time to $90.2 million. However, investment deal book tracking companies have the tally pegged at $73.5 million or $88.3 million. Newly minted CEO Jonathan Czaja, who joined the company in September 2023, referred to the investment as a “modest Series C” round.
In March 2023, BRAIN reported that John Levisay, who had led The Pro’s Closet for over two years, was leaving as CEO at the end of that month to spend more time with his family. Paul Calandrella, formerly TPC’s vice president of strategic initiatives, was reportedly named general manager and was said to be in charge of day-to-day operations, according to BRAIN. Calandrella joined TPC in March 2022, according to earlier reporting from SGB Media.
In October 2021, SGB Media reported that TPC merged with The Radavist, a cycling website based in Sante Fe, NM, founded by John Watson. According to a media release at the time, The Radavist, which provides information and photographs about cycling and related outdoor activities, was to work with TPC to expand its content and merchandise offerings.
“Central to the merger is TPC’s commitment to supporting The Radavist Founder and Editor John Watson and lead Designer Cari Carmean by investing in The Radavist brand to maintain the outlet’s authoritative perspective and voice in cycling. TPC’s resources will enable The Radavist to broaden its content and merchandise offerings and develop future collaborations with leading creatives, brands, and independent makers,“ The Pro’s Closet CEO John Levisay said that fall.
The move followed a big spring for TPC. In May 2021, the company closed on a $40 million Series B funding round, led by The Chernin Group and with participation from existing investors Foundry Group, Edison Partners, and Ridgeline. The funding round followed 2021 Q1 sales that doubled from 2020. The Pro’s Closet said revenue had more than quintupled, and the company expected to double in size again in 2021.
“This new round of investment is expected to align with The Pro’s Closet’s position to be the only scaled marketplace that works with every worldwide bike brand,“ SGB wrote at the time. “The funds will also allow the company to grow its operations and technology teams, and retail and manufacturing partners. The Series B investment will also facilitate physical expansion to new markets,“ TPC said.
“We’re extremely excited to use these funds to develop even more highly compelling experiences and services for our customers,“ said The Pro’s Closet CEO John Levisay that spring. “The Pro’s Closet aims to lift the entire bike industry by boosting liquidity in the marketplace. Many industries have proven that a fluid and safe aftermarket for used gear benefits and grows the entire vertical. We believe that we can advance that goal by expanding our teams and capacity to help more enthusiasts buy and sell bikes.”
The Series B round followed a smaller round that brought early funding of over $27 million into the company.
In September 2020, The Pro’s Closet raised $12 million, led by Foundry Group and Edison Partners. Ridgeline Ventures and existing private investors also joined the round at that time.
“TPC has seen more than 130 percent year-over-year top-line revenue growth this year and expects similar YoY growth in 2021,“ SGB Media wrote when covering that funding story. To scale its expansion, TPC said it was moving its headquarters and operations that year to a 137,000-square-foot facility in Louisville, CO. This building was the former North American headquarters for Fjallraven and featured 40,000 square feet of office space and 24 shipping bays.
TPC Founder Nick Martin decided to step aside in September 2020, and Board member John Levisay would transition from his role on the Board of Directors to TPC’s new CEO. Levisay would stay through multiple investing rounds before leaving in April 2023.
“We’ve seen vertical marketplaces like jewelry, fashion, and luxury goods take off in the re-commerce marketplace. TPC owns the fast-expanding, high-end, certified pre-owned bicycle segment. They’re introducing technology, efficiency, and buyer intelligence to a supply chain that previously didn’t exist. Given this transformative approach and the solid leadership at TPC, we are thrilled to join them as one of their partners,“ remarked Ryan Ziegler, general partner of Edison Partners.
In 2019, TPC announced that it had leased an additional 28,000-square-foot facility in Longmont, CO to accommodate its rapid growth.
“While bicycle sales across the industry have been relatively flat for 10 years, The Pro’s Closet has nearly tripled in both sales and employees in the past year, demonstrating overlooked demand for quality used products,“ the company said at the time.
According to data from the National Bicycle Dealers Association that year, sales of new products had stagnated at around $6 billion annually for the past decade.
“By making it easier to buy and sell used bikes, The Pro’s Closet is injecting new life into the bicycle industry as a whole and providing inventory solutions for retailers and manufacturers,“ the company said.
In September 2017, Foundry Venture Capital 2016, L.P. reported completing its initial investment in The Pro’s Closet as part of a $9 million financing. At the time, TPC, based in Boulder, CO, was described by Foundry as “the world’s largest seller of pre-owned bicycles and bicycle parts.“ TPC remains listed as a portfolio company for Foundry Venture Capital.
“The cycling market is large and expanding rapidly,“ wrote Seth Levine, a partner at Foundry, in a blog entry announcing the deal that month in 2017. “But as bicycles become more sophisticated and expensive, a gap has opened up in the market for used bicycles. TPC’s platform solves the pain points that sellers and buyers of used bikes experience. For sellers TPC offers the quickest and easiest way to turn their used bike into cash – often to be used to purchase a new (or newer) bike. TPC also works with bicycle shops and manufacturers helping to reduce the sticker shock of new bikes by offering a trade-in program for a customer’s old bike. TPC also works with bike manufacturers to help them manage and resell their demo inventories.”
It was a good idea at the time and is still a good idea today.
Images courtesy The Pro’s Closet
