The company was recently merged with Blue Competition Cycles and Mad Fiber Wheels to become part of the Divine Cycling Group. But funding which DCG had promised prior to the merger, never materialized according to sources.
At the time of the merger, DCG said the combined brands would be better able to attract investment. However, according to Watkins there was no immediate increase in funding, forcing him to lay off eight or nine employees on July 19.
Both Mad Fiber and Blue Competition were said not to be immediately affected.
Serotta has closed its factory in Poway, California, and laid off all the employees there. Serotta’s remaining bike builders in New York were working to complete orders. For the rest of this article, please go Bicycle Retailer.