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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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Current Report Pursuant to Section 13 or 15(d) of
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 1999
THE DERBY CYCLE CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 333-61191 31-1038896
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(State of incorporation (Commission (I.R.S. Employer
or organization) (File Number) (Identification No.)
22710 72/nd/ Avenue South Kent, Washington 98032
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (253) 395-1100
This Report contains 4 pages.
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Item 2. OTHER EVENTS
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The Derby Cycle Corporation (the "Company") announced to its employees
today that Raleigh UK intends to cease manufacturing steel bicycle frames
altogether by the end of 1999 due to increased consumer demand for aluminum
frames. Steel frames manufactured by the Company currently account for
approximately 50% of all frames sold by the Company, with the balance being
fabricated from aluminum and imported from Asia.
The Company is currently negotiating the sale of the factory site that
will be released subject to the consent of the Company's senior lenders. The
Company intends to use the proceeds from the sale of the site either to pay
expenses associated with the restructuring or to pay down the Company's senior
credit facility, or a combination thereof.
Other components of the restructuring include streamlining the Company's
product development and marketing functions.
The consolidation of the bicycle operations together with the other
restructuring activities will produce greater efficiencies and help re-build
the Company's profitability. The nature of these changes requires them to be
phased in over the balance of 1999, and the precise number and timing of the
associated lay-offs will not be determinated until more detailed work has been
completed.
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Item 7. EXHIBITS
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None
This report contains forward looking information subject to the safe
harbor of the Private Securities Litigation Reform Act of 1995. Management
cautions that statements regarding future performance are highly dependent upon
a variety of important factors which could cause actual results to differ
materially from the projections of management.
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereto duly authorized.
THE DERBY CYCLE CORPORATION
By: /s/ Simon J. Goddard
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Name: Simon J. Goddard
Title: Chief Financial Officer
Date: May 7, 1999
