On September 29, Dennis Pontius, owner of Two Wheel Tango, “found out that we might be losing our relationship with Specialized,” the only brand of bike Pontius carried at all three stores–two in Ann Arbor, one in Canton. Six days later, he was still in shock as he cleaned out what was left in his Jackson Rd. store, which wasn’t much, because most of the merchandise had been repossessed by Specialized. His answer to most questions was a polite “I’m not going to tell you,” but Oscar Bustos, owner of Great Lakes Cycling, gave the inside bike dealer’s lowdown on Specialized.
“They make a great bike,” says Bustos, but he explains Specialized’s unique corporate marketing strategy. Most bike manufacturers, he says, have some sort of exclusivity contract, to make sure local dealers aren’t competing with one another, but Specialized goes above and beyond, encouraging their dealers to lock out other bike brands. Eventually, “they take everything over,” which was what happened at Two Wheel Tango, which sold only Specialized bikes. It isn’t the first time one of their stores has suddenly gone out of business, Bustos says–he cites a similar shake-up in a California store.
Specialized doesn’t have anything to add. “I’m only calling out of courtesy because it’s rude not to return calls,” said Dave Massey, Specialized’s Midwest sales manager. “There’s just nothing that I can talk about. It’s all being handled by our legal department.”
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After twenty-six years in business, Jim Johnston and Kay Gould-Caskey will close Falling Water Books & Collectables by year’s end because the Main Street building will be sold. Store manager Jessica Wade Johnston–Jim’s daughter–says the new owner plans to raise rental rates to an “unreasonable” level. Wade Johnston says customer response to the closing has been “heartwarming,” and that for her family, Falling Water’s been “more than just a business–it’s a force in our lives.”
Wade Johnston, who serves on the Main Street Area Association board, agrees that “the landscape of downtown is changing,” but emphasizes that “Main Street is going to thrive because there’s so much to offer.” Kay and Jim won’t retire after the closing, but instead plan to teach at Ann Arbor’s Center for Creative Pursuits. “Change is part of the journey,” Wade Johnston says.
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“Out of business, Thanks Ann Arbor!” and a frownie face is all that’s left of Smoothie King between the People’s Food Coop and No Thai! Landlord Olga Bilakos said the lease was up and wouldn’t speculate on why they decided not to renew. This Smoothie King franchise opened in 2005. The closest one is now in Kalamazoo.
Just an observation. I find it hard to believe, Dennis and his wife, Leslie, had no idea the entire business was about to be shut down. The Chelsea State Bank, now has the properties and are auctioning off the remaining items Specialized didn’t take. A bank Foreclosure, doesn’t happen over night, a week, a month, etc. I would have to believe Dennis Pontius and his wife Leslie Isaacs were in default with the Chelsea State Bank for A LONG TIME, a year, most likely. How the owners kept this from their employees is very strange, and seems very shady. But, that’s just another hurdle the owners will have to live out. Doesn’t sound like fun. “BOOM BOOM” out go the lights.”