Rough times at Scott…

Since 1958, back in Sun Valley, Idaho, when Ed Scott, launched an aluminum ski pole to replace good old bamboo, change has always been the order of the day. In 1970, the firm entered the motocross goggle market with the first ever motocross specific product, before introduced motocross boots, grips and accessories. 

The following year, it added the world's lightest ski boot along with first ski goggles using foam ventilation. In 1981, Ed Scott was replaced at the helm of the company by Chuck Ferries, a former US Ski Team member from 1960 through 1964 who made two Olympic teams in ‘60 and ’64, and became the first American to ever win Austria’s famous Hahnenkamm slalom. 

In the meantime, Scott opened its European headquarters in 1978 near Fribourg, Switzerland where eventually Tom Stendahl became Ferries business partner. Then progressively, the European branch of the company took over the lead as it got deeper into bicycling and Beat Feugg became the big boss as Ferries and Stendahl walked into the sunset with cash after relinquishing their interests and “Scott USA” became “Scott Sports” indicated a shift into Swiss-based management.

Soon, the firm added sport clothing, skis and e-bike with varying degrees of success as it was spreading itself too thin, leaving major openings for Leki, Oakley and the legacy bike companies. This is probably what led the Korean Youngone Corporation to purchase a 50.1% stake in the company in 2015, while Beat Zaugg retained the remaining 49.9% but lost financial control. 

Youngone employs 90,000 people worldwide. It supplies brands like Patagonia, Adidas, Lululemon, Outdoor Research, and The North Face, with factories in Korea, Bangladesh, China, Vietnam, and Thailand. It also is a majority share owner of Outdoor Research. 

A few days ago, Scott Sports Board of Directors replaced CEO Beat Zaugg "to refresh Scott's development to become a world-class manufacturer in bikes and other outdoor sport categories." Sales have not been good for Scott that fell victim to its over-diversification and loss of focus. 

This didn’t play well with the 66 year old Zaugg who claims that the move was improperly initiated and doesn’t feel good at the idea that he may have to sell his remaining 47% interest in the company, but that’s what eventually happens when you exchange controlling interests for hard cash...