Garneau initiative aims to support struggling local bike shops

Canadian gear and apparel company Garneau has announced a new program it says will support local bike shops facing economic hardship due to the outbreak of the novel coronavirus.

The initiative was created for existing Garneau dealers. The company will offer them a profit sharing structure for all non-discounted online orders placed on Garneau’s website in the month of April. First, shops will be issued a specific code. When customers use that code with their purchase, the bike shop will earn a credit of 30 per cent of the sale. The credit will go towards their accounts with Garneau.

“The outbreak of the novel coronavirus has sent us all into uncharted territory, and the economic impacts will be significant and far-reaching,” says Garneau senior sales director, Mike Britten. “These immediate actions we are taking today also provide a perfect testing opportunity for possible future programs.”

The program operates in a similar way to many brand ambassador programs, where an individual or group promotes a product and, in exchange, receives the product at a discount. Garneau says the initiative is designed to support local bike shops facing economic hardship, but local bike shops are not the only ones who would stand to profit from this program.

Garneau working to come back from debt

In early March, Garneau, in $32-million worth of debt, filed for creditor protection under the Bankruptcy and Insolvency Act. The company owes money to more than 500 creditors and is no doubt looking for ways to increase sales.

RELATED: In debt for $32 million, Garneau files for creditor protection

Garneau has been honest about how the profit sharing structure will be helping them as well, calling it an effort to collaborate and share resources.

“These are challenging times, but together, we are resilient, and together we will get through this and continue to grow alongside our retailers,” says Britten.

Dealers can apply for inclusion in the Garneau program here.