During the 1950s, one out of every four bicycles sold in the United States was made by Schwinn Bicycle Co.
The company gained esteem for such innovations as coaster brakes, balloon tires and gear shifts mounted on handlebars.But the bicycle business pedaled past Schwinn in later decades. Outpaced by competitors with lighter, trendier bikes, Schwinn's market share dwindled to around 12 percent in the mid-1970s, and to 7 percent today.
The problems finally caught up with Schwinn this past week, when the company filed for bankruptcy protection in federal court, seeking a reprieve from the sluggish economy and heavy debts.
The 97-year-old company insists it will fight back and recover.
Schwinn is seeking cash from an investor, and this fall, it introduced a redesigned product line that's more stylish, lighter, faster and durable. It also plans to expand its fitness equipment line - now 25 percent of the business - and boost advertising and dealer incentives.
"I think Schwinn still has great strengths and great distribution," Chuck McCullagh, publisher of Bicycling magazine, said after the bankruptcy filing. "They're producing good products, competitively priced."
But even before Schwinn's Chapter 11 filing, Tory Roher, publisher of the trade publication Bicycle Dealer Showcase, said it was unlikely Schwinn would regain its former glory.
"There is the perception Schwinn has lost the edge in innovation," Roher said. "It is a perception that will be difficult for them to overcome."
The Schwinn family has run the company since it was founded in 1895 by Ignaz Schwinn and his partner, Adolph Arnold.
The Schwinn name is stamped on such renowned bikes as the Aerocycle, the Cycleplane and the Autocycle of the 1930s, the Phantom of the 1950s and the Sting-Ray bicycle of the 1960s. Its Varsity 10-speed was big on the bike paths of the 1970s.
But Schwinn was slow in responding to the popularity of mountain bikes, which now account for six out of 10 cycles sold in the United States, analysts said.
Schwinn officials acknowledge that complacency is a major reason companies like Wisconsin-based Trek USA and California-based Specialized Bicycle Components were able to win away customers.
"Back during the period of the late 1970s early 1980s, Schwinn was not staying in close touch with the market," said marketing director Byron Smith. "The market was moving to lightweight bikes, while Schwinn was selling heavier bikes. That is not the case today."
Still, Schwinn sales have been stuck at around 900,000 bikes a year for the past decade, according to Bicycle Dealer Showcase. Sales fell to $186 million in 1991 from about $200 million the previous year. The closely held company doesn't release profit figures.
In filing for reorganization in U.S. Bankruptcy Court, Schwinn listed assets as $117 million and liabilities as $82 million. But its president, Edward R. Schwinn, said the listed assets do not take into consideration factors such as the value of the Schwinn name.
"We are developing a broader line of fitness equipment for our distributors," said Edward Schwinn, a great-grandson of the founder. "We think there is an interesting growth opportunity out there."
But keeping independent bicycle dealers happy may be the big key to Schwinn's future success.
Sears Roebuck and Co., Wal-Mart Stores Inc. and Kmart Corp. - retailers that sell about 70 percent of the bicycles in the United States - are supplied by competitors Huffy Bicycle Co. and Murray Ohio Bicycle Co.
Schwinn has about 18 percent of the market for bicycles sold by independent dealers.
A new promotion plan is part of Schwinn's new approach, along with a new management team for product development.
The company has begun offering incentives to dealers to spur sales - prizes such as video cassette recorders to top sales people.
Smith said Schwinn will start an aggressive advertising campaign in the spring, working with dealers in joint promotions.
Bicycling magazine's McCullagh said the big indicator of Schwinn's change of attitude is its 1993 product line.
The innovations include frames built in a low-heat process that allows use of lugs instead of welding to join parts, producing stronger, lighter bicycles, said product developer Glen Adams, a former bicycle racer and one of the new production managers.
The company is promoting a compressed air and oil suspension system for mountain bikes that it says requires no maintenance, and a suspension developed by the Italian manufacturer Paioli that allows a biker to adjust a bike's ride by inserting rubber plugs of various firmness.