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Trust Performance suspends operations due to coronavirus disruptions

Small suspension brand is one of the first cycling businesses to fall to outbreak

Trust Performance, the innovative U.S. suspension company developing linkage forks, is suspending operations as a result of the coronavirus outbreak.

It was not one single issue, but a confluence of disruptions that led to Trust’s problems. The brand’s story provides a window into the multitude of ways the COVID-19 pandemic could hurt the bicycle industry.

Trust starts its announcement by highlighting how 2019 was a year of growth for the brand. So what went wrong? A few things.

Trust Performance
Trust Performance most recent release, the Shout. The linkage system delivers 178 mm of travel.
“A perfect storm”

Like many brands, Trust’s relies on Asia for its carbon fibre manufacturing. With China being the first hit by coronavirus, the companies supply chain was disrupted. While the biggest bike brands own their own factories or are big enough clients to take priority at factories, small brands are more sensitive to change in their supply. Second, while the brand had just surpassed a major sales milestone COVID-19 related fears slowed sales. “In February,” the release says, “demand slowed considerably as macro fears about the economy started to rise.” At the same time, Trust was at a point in its development where it needed to expand. The same economic concerns, though, had shut down the flow of investment capital.

“This was at a point where we needed increased liquidity to carry us through a critical moment in our business,” says Trust. “It all added up to a perfect storm that slammed right into us.”

Is this the end for Trust Performance? Not necessarily. “Trust Performance is taking a pause and suspending operations until we address our capital needs.” While the outlook for the kind of investment Trust needs right now isn’t great, there is still a chance the brand could make a comeback in the future.

Until then, Trust’s story should serve as a reminder that small and medium-sized businesses are particularly vulnerable during trying economic times. Support your local brands and businesses now, if you can. Whether that is the community bike shop or Canadian bike builders, apparel companies or parts manufacturers. That way we can continue to enjoy their products in the future!

Full statement from Trust Performance:

We started Trust Performance in 2015 with a vision of building products that bring spirited outdoor athletes more fun and camaraderie. Our core focus from the outset was on reimagining and re-defining suspension technology; at first in mountain bikes with other industries thereafter. As you might imagine, our plans hinged on raising multiple rounds of capital to fuel our ambitions for incredible design, engineering, manufacturing and customer/dealer support.

2019 was a breakthrough year for Trust. We surpassed 1,000 units sold, we saw steep growth in dealer and distributor sales, and we saw four of our best-ever sales months at the end of the year. We had great momentum based on key demand metrics, brand awareness, and community enthusiasm.

But 2020 brought a number of unexpected factors, starting with the shut-down of key parts of our Asian supply chain following Chinese New Year due to coronavirus. In February, demand slowed considerably as macro fears about the economy started to rise. Then, finally, severe negativity in the investment markets shut down our ability to gain access to capital. This was at a point where we needed increased liquidity to carry us through a critical moment in our business. It all added up to a perfect storm that slammed right into us.

As a result of the overwhelming effects of the coronavirus and evaporated capital markets, it’s with incredible disappointment and a heavy heart that, effective immediately, Trust Performance is taking a pause and suspending operations until we address our capital needs. We are utterly and completely gutted. We have given every waking hour over the past few months to find a path forward, but to no avail. Trust Performance, like the rest of the world, will be a different company when life is back to normal.

For those who own a Trust fork and need service going forward, please contact Suspension Syndicate in Salt Lake City, Utah. They are trained and certified as a Trust Performance authorized service center.

We’re grateful for the community of people who encouraged and supported our unique design and innovative technology. In stepping away, we wish everyone health and safety. These trying times are a great reminder to make the most of the moment with those you enjoy most.