Huffy
Encyclopedia
The Huffy Corporation is an American
importer and manufacturer of inexpensive mass-market bicycle
s. It was founded in 1887 when George P. Huffman purchased the Davis Sewing Machine Company and moved its factory to Dayton, Ohio
. Seven years later, in 1894, Huffman adapted the factory to manufacture bicycles.
In 2004, Huffy sold its Huffy Sports division to Russell Corporation
. Huffy Sports manufactures sporting goods, including the Hydra-Rib basketball
systems used by the NBA.
In 1949, Huffy developed the Huffy Convertible, a children's bicycle with rear training wheels and foot steps. The Convertible revolutionized the children's market and was the first Huffy bicycle under the Huffy name. In 1953, a Huffy logo was created and Huffy switched all its bicycles to the Huffy name.
Popular models of the Huffy era include the Radio Bicycle, which had a radio in the frame; the Scout, a 10-speed road bicycle
; the Dragster, a wheelie bike
; and the Sigma, a BMX bike
.
In 1970, the Huffy Corporation was founded as an umbrella company to house the Huffy Bicycle division, as well as Huffy's emerging sporting goods line. Huffy purchased YLCE (Yorba Linda Cycle Enterprises) and converted that Southern California Company to a national service company, assembling bicycles and other products for mass merchants such as KMart, Target, Sears, and Walmart. Other divisions were purchased and added to the Huffy stable of companies, including Gerry Baby Products (Denver), Washington Inventory Service (San Diego), Raleigh Bicycle USA (Kent, WA), and True Temper Garden Products (Pennsylvania). The growth of the corporation during the 1980s was significant and Huffy (on the New York Stock Exchange) was nearly a Fortune 500 Company.
In the 1984
and 1988 Summer Olympics
, United States
athletes riding Serotta
-built bicycles racing under the Huffy name won two gold, two silver, and one bronze medal. A technical development center housed in the Huffy Corporate Offices in Dayton, Ohio was formed to research and create next-generation carbon fiber road and time trial bicycles. It was led by Mike Melton and Steve Bishop, two legendary custom bicycle builders. Sponsorship of world class and professional cyclists was only partially effective, as famous teams and riders, such as Greg LeMond and the 7-Eleven team used the Huffy sponsorship for financial support while openly maligning the company and even using different bicycles for competition while sponsored by Huffy. The subsequent fallout in the cycling community was devastating to Huffy, but not surprising considering the nature of the athletes involved. Huffy spent $500,000 to be named the Official Bicycle of the 1996 World Cycling Championships, held in Colorado Springs, the only time the World Championships has been held in the United States.
Huffy Bicycles had manufacturing and assembly facilities in Azusa, California (closed in the late 1970s), and Ponca City Oklahoma (closed in the early 1980s), but largely manufactured most of their bicycles in Celina, Ohio, and at one time was Celina's largest employer. At their peak, the bicycle division manufactured over two million bicycles per year and were the 'free' world's largest bike company. In 1996, the bicycle division received a major blow when U.S. courts ruled that surging imports of low-cost, mass-market bicycles from China
did not pose a 'material threat' to the last three major U.S. bicycle manufacturers - Murray Inc.
, Roadmaster, and Huffy. Huffy closed its Celina Ohio plant in 1998, and quickly thereafter closed two smaller bicycle manufacturing plants (in Farmington, MO. and Southhaven, MS.) which had been opened as a last ditch effort to avoid the higher union manufacturing costs in Ohio. After it became apparent that continued U.S. production of low-cost, mass-market bicycles was no longer viable, Huffy had bicycles built by plants in Mexico and China, starting in 1999. The relationship with the Mexican plant was severed in 1999, and Huffy soon reneged on its loan promises to its Chinese partners, effectively surrendering the once proud company to its Chinese creditors. Crown Equipment Corporation
now uses the former Huffy U.S. bicycle factory in Celina, Ohio, to produce forklifts.
s had accounting irregularities. The price of Huffy stock (Stock symbol: HUF) declined by 40 percent on the next NYSE
trading day. On 16 August 2004, the NYSE suspended Huffy stock and removed it as a listed stock. Finally, on 20 October 2004, Huffy announced that the Huffy Corporation and all its United States and Canadian subsidiaries would file for bankruptcy
protection under Chapter 11 of the United States Bankruptcy Code. The accounting irregularities included the corporate (mis)use of pension funds. Because Huffy awarded many employees with stock option grants, the demise of the company largely left those employees without most of their earned pensions and with zero value in their Huffy Corp shares. The pension program of Huffy Corp is now run by the U.S. federal government, under the Pension Benefit Guarantee Program. Corporate executives seemed to have avoided most of the financial fallout, landing softly with significant/attractive separation packages. Huffy Corp's last ten years is a business school staple subject of how a corporation's executives can destroy a company and leave thousands jobless by mismanagement.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
importer and manufacturer of inexpensive mass-market bicycle
Bicycle
A bicycle, also known as a bike, pushbike or cycle, is a human-powered, pedal-driven, single-track vehicle, having two wheels attached to a frame, one behind the other. A person who rides a bicycle is called a cyclist, or bicyclist....
s. It was founded in 1887 when George P. Huffman purchased the Davis Sewing Machine Company and moved its factory to Dayton, Ohio
Dayton, Ohio
Dayton is the 6th largest city in the U.S. state of Ohio and the county seat of Montgomery County, the fifth most populous county in the state. The population was 141,527 at the 2010 census. The Dayton Metropolitan Statistical Area had a population of 841,502 in the 2010 census...
. Seven years later, in 1894, Huffman adapted the factory to manufacture bicycles.
In 2004, Huffy sold its Huffy Sports division to Russell Corporation
Russell Corporation
Russell Brands, LLC, headquartered in Bowling Green, KY, is a manufacturer of sports equipment, which markets its products under many brands and subsidiaries, including Russell Athletic , Spalding, Huffy, and Brooks, amongst others....
. Huffy Sports manufactures sporting goods, including the Hydra-Rib basketball
Basketball
Basketball is a team sport in which two teams of five players try to score points by throwing or "shooting" a ball through the top of a basketball hoop while following a set of rules...
systems used by the NBA.
Huffy Bicycles
From the company's inception until 1949, Huffy manufactured and sold bicycles under the "Dayton" brand. Popular models included the Special Roadster, the Racer, the LaFrance, and the Streamliner. In 2008 Huffy produced its most advanced, state of the art BMX race bike ever, the Carbon C2. Its primary components consist of 6061 aluminum, Carbon Fiber and Chromoly, three of the most light weight and durable materials ever used in Huffy's production line.In 1949, Huffy developed the Huffy Convertible, a children's bicycle with rear training wheels and foot steps. The Convertible revolutionized the children's market and was the first Huffy bicycle under the Huffy name. In 1953, a Huffy logo was created and Huffy switched all its bicycles to the Huffy name.
Popular models of the Huffy era include the Radio Bicycle, which had a radio in the frame; the Scout, a 10-speed road bicycle
Road bicycle
The term road bicycle is used to describe bicycles built for traveling at speed on paved roads. Some sources use the term to mean racing bicycle...
; the Dragster, a wheelie bike
Wheelie bike
A wheelie bike, also called a muscle bike, high-riser, or banana bike, is a type of stylized children's bicycle designed in the 1960s to resemble a chopper motorcycle and characterized by ape hanger handlebars, a banana seat with sissy bar, and small wheels. Notable examples include the Schwinn...
; and the Sigma, a BMX bike
BMX
Bicycle motocross or BMX refers to the sport in which the main goal is extreme racing on bicycles in motocross style on tracks with inline start and expressive obstacles, and it is also the term that refers to the bicycle itself that is designed for dirt and motocross cycling.- History :BMX started...
.
In 1970, the Huffy Corporation was founded as an umbrella company to house the Huffy Bicycle division, as well as Huffy's emerging sporting goods line. Huffy purchased YLCE (Yorba Linda Cycle Enterprises) and converted that Southern California Company to a national service company, assembling bicycles and other products for mass merchants such as KMart, Target, Sears, and Walmart. Other divisions were purchased and added to the Huffy stable of companies, including Gerry Baby Products (Denver), Washington Inventory Service (San Diego), Raleigh Bicycle USA (Kent, WA), and True Temper Garden Products (Pennsylvania). The growth of the corporation during the 1980s was significant and Huffy (on the New York Stock Exchange) was nearly a Fortune 500 Company.
In the 1984
1984 Summer Olympics
The 1984 Summer Olympics, officially known as the Games of the XXIII Olympiad, was an international multi-sport event held in Los Angeles, California, United States in 1984...
and 1988 Summer Olympics
1988 Summer Olympics
The 1988 Summer Olympics, officially known as the Games of the XXIV Olympiad, were an all international multi-sport events celebrated from September 17 to October 2, 1988 in Seoul, South Korea. They were the second summer Olympic Games to be held in Asia and the first since the 1964 Summer Olympics...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
athletes riding Serotta
Serotta
Serotta is an American bicycle builder located in Saratoga Springs, New York. Named for founder Ben Serotta, the company has been making custom road and competition bicycles since the 1970s....
-built bicycles racing under the Huffy name won two gold, two silver, and one bronze medal. A technical development center housed in the Huffy Corporate Offices in Dayton, Ohio was formed to research and create next-generation carbon fiber road and time trial bicycles. It was led by Mike Melton and Steve Bishop, two legendary custom bicycle builders. Sponsorship of world class and professional cyclists was only partially effective, as famous teams and riders, such as Greg LeMond and the 7-Eleven team used the Huffy sponsorship for financial support while openly maligning the company and even using different bicycles for competition while sponsored by Huffy. The subsequent fallout in the cycling community was devastating to Huffy, but not surprising considering the nature of the athletes involved. Huffy spent $500,000 to be named the Official Bicycle of the 1996 World Cycling Championships, held in Colorado Springs, the only time the World Championships has been held in the United States.
Huffy Bicycles had manufacturing and assembly facilities in Azusa, California (closed in the late 1970s), and Ponca City Oklahoma (closed in the early 1980s), but largely manufactured most of their bicycles in Celina, Ohio, and at one time was Celina's largest employer. At their peak, the bicycle division manufactured over two million bicycles per year and were the 'free' world's largest bike company. In 1996, the bicycle division received a major blow when U.S. courts ruled that surging imports of low-cost, mass-market bicycles from China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
did not pose a 'material threat' to the last three major U.S. bicycle manufacturers - Murray Inc.
Murray (bicycles)
Murray was an American company whose assets are now owned by Briggs & Stratton and Dorel Industries. The corporate brand is a descendant of the Murray Ohio Manufacturing Company, which manufactured bicycles and lawn and garden equipment ....
, Roadmaster, and Huffy. Huffy closed its Celina Ohio plant in 1998, and quickly thereafter closed two smaller bicycle manufacturing plants (in Farmington, MO. and Southhaven, MS.) which had been opened as a last ditch effort to avoid the higher union manufacturing costs in Ohio. After it became apparent that continued U.S. production of low-cost, mass-market bicycles was no longer viable, Huffy had bicycles built by plants in Mexico and China, starting in 1999. The relationship with the Mexican plant was severed in 1999, and Huffy soon reneged on its loan promises to its Chinese partners, effectively surrendering the once proud company to its Chinese creditors. Crown Equipment Corporation
Crown Equipment Corporation
A privately held, family-owned U.S. company, Crown Equipment Corporation is the fourth largest manufacturer of powered industrial forklift trucks in the world. According to industry reports, Crown had $1.6 billion in worldwide sales revenue for fiscal year 2009. Crown has appeared at least ten...
now uses the former Huffy U.S. bicycle factory in Celina, Ohio, to produce forklifts.
Financial problems
On 13 August 2004, Huffy announced that its financial statementFinancial statement
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...
s had accounting irregularities. The price of Huffy stock (Stock symbol: HUF) declined by 40 percent on the next NYSE
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
trading day. On 16 August 2004, the NYSE suspended Huffy stock and removed it as a listed stock. Finally, on 20 October 2004, Huffy announced that the Huffy Corporation and all its United States and Canadian subsidiaries would file for bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
protection under Chapter 11 of the United States Bankruptcy Code. The accounting irregularities included the corporate (mis)use of pension funds. Because Huffy awarded many employees with stock option grants, the demise of the company largely left those employees without most of their earned pensions and with zero value in their Huffy Corp shares. The pension program of Huffy Corp is now run by the U.S. federal government, under the Pension Benefit Guarantee Program. Corporate executives seemed to have avoided most of the financial fallout, landing softly with significant/attractive separation packages. Huffy Corp's last ten years is a business school staple subject of how a corporation's executives can destroy a company and leave thousands jobless by mismanagement.