Huffy

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Huffy Corporation
TypePrivately held company
Founded1892; 129 years ago (1892)
FounderGeorge Huffman
Headquarters
Miamisburg, OH
,
USA
Key people
Claude Jordan, CEO

William A. Smith, Senior Advisor

Matthew Kerr, CFO
Websitehttps://www.huffybikes.com

The Huffy Corporation is a supplier of bicycles with headquarters in Dayton, Ohio.

Early history[]

It has its roots in 1887 when George P. Huffman purchased the Davis Sewing Machine Company and in 1890 moved its sewing machine factory from Watertown, New York, to Dayton, Ohio. The Davis Sewing Machine company made their first Dayton bicycle, in Dayton, Ohio, in 1892.[1][2] In 1924, George's son, Horace M. Huffman, Sr., founded the Huffman Manufacturing Company.[3] From then until 1949, Huffman continued to manufacture and sell bicycles under the "Dayton" brand.[2]

During the 1930s, Huffman participated in the revival of the American cycling industry, during which Horace Huffman commented on a "change of attitude".[4] Although Huffman dabbled in the high-end of the market, they never overcame their entry-level reputation.[1][5]

Post-War History[]

1950s Huffy Radio Bicycle

In 1949, Huffman developed the Huffy Convertible, which was a children's bicycle with rear training wheels and foot steps.[2] The invention of the training wheels revolutionized the market for children's bicycles, and this was the first Huffman bicycle under the Huffy brand.

Also in 1949, Huffy started selling push and riding mowers. The company would eventually leave the market in 1975. [6]

By 1953, a Huffy logo was created and Huffman switched all its bicycles to the Huffy brand. A few of the most popular models included the Special Roadster, the Racer, the LaFrance, and the Streamliner.

Seven years later in 1960, Huffman was the third largest bike manufacturer in the United States.[3] Popular models produced during the heyday of the Huffy Corporation included the RadioBike® (one word), which had an electron-tube radio in the tank; the Scout, a 10-speed road bicycle; the Dragster, a so-called "wheelie bike"; and the Sigma, a BMX bike.

The Penguin and Chopper bicycles[]

In 1962, Peter Mole of the John T. Bill & Co contacted Huffman with a concept for producing a bicycle based on a motorcycle, which he called the High Rise. Mole developed the bike based on heavily modified children's bicycles that were becoming popular with pre-teens in Southern California, and which mimicked the appearance of customized "chopper" motorcycles. The High Rise had a long banana seat with supporting struts and tall "ape-hanger" handlebars. Huffy hesitated for several months before agreeing to make the bike, on the condition that if the bike failed to sell that Mole would buy all the leftover parts and frames. The new bike, informally designated the Penguin, began appearing in retail stores by March 1963. The Penguin was the first of the banana-seat chopper bicycles to reach the U.S. market.[7][8][9]

Introducing the Huffy Penguin

In November 1964, Huffman Manufacturing Company ran an advertisement for their new Dragster model in Life Magazine, which claimed that Huffman was the first to manufacture a bicycle of the high-rise type.[10][11]

In 1966, Huffman introduced a new long-wheelbase bicycle frame called the Rail. The new frame was approximately 4" to 5" longer than previous models. The new frame became Huffman's base model until 1968. In 1968, in an effort to market a children's bicycle with an automotive theme, Huffman designers added a car-type steering wheel in place of handlebars to the Rail frame, which became the Huffy Wheel. Tall "stick-shift" derailleur gear shift levers mounted on the frame top-tube imitated the gearshift levers of popular muscle cars of the day, while many banana-seat cycles were fitted with tall chromed sissy bar passenger backrests at the rear of the seat. In mid-1968, Huffman released the Flaming Stack chain guard, which was designed to look like the distinctive side exhaust pipe covers on the Corvette sports car. Later that same year, Huffman released a new Slingshot model with 16" front dragster wheel, and 20" rear. The new 1969 models where the last year for the three-bar Rail frame style. In 1970 Huffman deleted their three-bar frame and went to a two-bar Rail frame, eventually adding additional two-tone fade paint jobs along with Persons striped seats. These designs continued in production until 1971 when new safety and manufacturing restrictions from the BMA (Bicycle Manufacturers Association), the Consumer Product Safety Commission (CPSC) and other U.S. federal agencies forced the discontinuance of the Wheel, the top-tube mounted "stick-shift", the "sissy bar", and many other stylized features of children's bicycle designs.

Modern era[]

In 1970, the Huffy Corporation was founded as an umbrella company to house the Huffy Bicycle division, as well as Huffman Manufacturing Company's emerging sporting goods line. Huffman 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 Huffman stable of companies, including Gerry Baby Products (Denver), Washington Inventory Service (San Diego), Raleigh Bicycle USA (Kent, WA), and True Temper Garden Products (Pennsylvania).

In 1977 the company name was changed from Huffman Manufacturing Company to Huffy Corporation.

The growth of the corporation during the 1980s was significant and Huffy (HUF 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 brand won two gold medals, two silver medals, 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 first time the World Championships has been held in the United States.[12]

Huffy racing bicycle, frame built by Dennis Bushnell

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.

By the mid 1990s, Huffy was in deep financial trouble. The U.S. Bicycle industry had consolidated, sharply reducing the number of channels for selling bikes. High-volume retailers had claimed three fourths of the U.S. market, gaining tremendous leverage over bicycle makers. Walmart in particular was pressuring Huffy: it ordered 900,000 bikes at one time, but insisted that Huffy lower its prices significantly. To remain a major player in the bicycle market, the Ohio company had little choice but to agree. Even with Huffy's other non-unionized manufacturing plants, it could not make a profit selling bicycles at the prices Walmart, its biggest customer, was willing to pay. After requesting and getting a pay cut for its unionized workforce in Ohio, Huffy returned to profitability for two years only to again crumple under the pricing pressure applied by Walmart. This forced Huffy to close its Celina, Ohio plant and lay off all 935 employees. Their other two factories in Missouri and Mississippi soon fell to the same fate for the same reason. Even after subcontracting production to China, where plant workers earned only 25 to 41 cents per hour, it remained unable to operate at a profit.

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.[13] Huffy closed its Celina, Ohio plant in 1998,[14] 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.[15] The relationship with the Mexican plant was severed shortly thereafter. In federal bankruptcy court in Dayton, Ohio, in 2004, Huffy's assets were turned over to its Chinese creditors. In 2004, Huffy sold its Huffy Sports division to Russell Corporation. Huffy Sports manufactured sporting goods, including the Hydra-Rib basketball systems used by the NBA. By 2006, Huffy had sold more than 100 million bicycles. After years of struggling against the cut-rate Chinese bicycles that set the price target guiding Walmart, Huffy essentially had become a Chinese-owned company. [16] Today, the design, product development and marketing (majority of all business functions) for Huffy is based in Dayton, Ohio. Manufacturing is based outside of the U.S. [17] Crown Equipment Corporation now uses the former Huffy U.S. bicycle factory in Celina, Ohio, to produce forklifts.

In 1999, Ames acquired True Temper yard tools and golf shafts from Huffy.[18]

Financial problems[]

On August 13, 2004, Huffy announced that its financial statements had accounting irregularities. The price of Huffy stock (Stock symbol: HUF) declined by 40 percent on the next NYSE trading day.[19] On August 16, 2004, the NYSE suspended Huffy stock and removed it as a listed stock.[19] Finally, on October 20, 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.[19][20] The accounting irregularities included the corporate (mis)use of pension funds. The pension program of Huffy Corp is now run by the U.S. federal government, under the Pension Benefit Guarantee Program. No Huffy executives were ever charged and/or convicted of their crimes.

See also[]

References[]

  1. ^ a b Caroline Thompson (May 26, 2011). "The History of Huffy Bicycles". Demand Media. Retrieved January 15, 2012.
  2. ^ a b c "Company History". Huffy Corporation. 2011. Archived from the original on October 16, 2012. Retrieved January 15, 2012.
  3. ^ a b "Huffy Corporation". FundingUniverse. Retrieved January 15, 2012.
  4. ^ Herlihy, David V. (2004). Bicycle, The History. Yale University Press. pp. 327. ISBN 0-300-10418-9.
  5. ^ "Huffy Bicycles". SoCalBicycles. Archived from the original on January 2, 2012. Retrieved January 15, 2012.
  6. ^ https://www.tractordata.com/lawn-tractors/tractor-brands/huffy/huffy-lawn-tractors.html
  7. ^ John Brain. "The Birth of the Factory Muscle Bike: 1963". John T. Bill introduced the Penguin to their many So-Cal dealers on March 3rd 1963, at the open house of their new corporate facilities in Glendale, CA.
  8. ^ William Hudson. "Myths and Milestones in Bicycle Evolution". Leon Dixon of the National Bicycle History Archive of America notes: "This is a very serious myth. First, Schwinn merely copied the Huffy Penguin which existed BEFORE the Sting-Ray.
  9. ^ "Evolution of the High Rise Bicycle 1963". Raleigh Ron's Classics. Retrieved January 16, 2012.
  10. ^ "What's this new Huffy-of-California Bike Got that Others Haven't?". Life Magazine: 102. November 13, 1964.
  11. ^ Liz Fried (August 1997). Schwinn Sting-Ray. Motorbooks International. ISBN 0-7603-0330-4.
  12. ^ Todd Spinner (August 6, 2009). "In defense of Huffy". Smile Politely, Champaign-Urbana's independent online magazine. Retrieved January 15, 2012.
  13. ^ Sands, David R., Chinese Bikes Ruled No Threat To U.S. Makes, The Washington Times, June 5, 1996
  14. ^ "Company News; Huffy Plans to Close 40-Year-Old Bicycle Factory". The New York Times. May 29, 1998. Retrieved January 15, 2012.
  15. ^ "Company News; Huffy to Stop Making Bicycles in the United States". New York Times. September 28, 1999. Retrieved January 15, 2012.
  16. ^ Bianco, Anthony (2009). The Bully Of Bentonville. Crown Publishing Group. p. 173. ISBN 9780307548962.
  17. ^ Records of Bankruptcy Court SD Ohio
  18. ^ "About Our History | True Temper® Tools".
  19. ^ a b c "Huffy Bicycles Into The Swinging Sixties And Beyond". Bicycle-and-Bikes.com. Retrieved January 15, 2012. Source: International Directory of Company Histories, Vol. 30. St. James Press, 2000
  20. ^ "Company News; Huffy, Maker of Classic Bicycles, Files for Bankruptcy". New York Times. October 21, 2004. Retrieved January 15, 2012.

Further reading[]

  • Bianco, Anthony. The Bully of Bentonville: How the High Cost of Wal-Mart's Everyday Low Prices Is Hurting America.
  • Fried, Liz (1997). Schwinn Sting-Ray, Motorbooks International. ISBN 0-933201-88-5. LCCN 97-25442
  • "Coverage of the John T. Bill warehouse opening of March 3, 1963 showing the first factory built High Rise bicycle 'Huffy Penguin'". Bicycle Journal, April 1963.

External links[]

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