A trend is emerging among large enterprises, purchasing successful outdoor businesses in Colorado only to move their operations elsewhere. This results in negative impacts, including displacement of local employees, significant cultural changes within companies, and potential disruptions to the local economy and the balance of the ecosystem. One must not overlook the importance of carefully managing these transitions to mitigate the potential adverse effects.
QuietKat, an electric bike company, is a recent example of this trend. After carving out a strong presence in Eagle, Colorado, post-acquisition, the company relocated its operations to Irvine, California. Backcountry Access (BCA), another enterprise focusing on innovative avalanche safety equipment, followed a similar trajectory. Founded in Boulder, Colorado, BCA moved to Washington following its purchase by K2 Sports and later Newell Brands.
Despite the move, BCA remained committed to offering high-quality safety solutions to the backcountry community. However, BCA co-founder Bruce Edgerly pointed to the drawbacks of such a shift.
Colorado’s outdoor businesses’ relocation dilemmas
He highlighted a reduction in direct product engagement and a less motivating work environment due to the shift out of Colorado.
Several other companies, like Niner Bikes and Denver’s Guerilla Gravity, have experienced similar shifts. This underlines a broader trend affecting Colorado’s outdoor recreation businesses. Such transformation requires an immense amount of adjustment and adaptability. This transition has prompted local businesses to rethink their operational strategies in order to prevail in a competitive, constantly changing market.
Employment impacts due to these moves are tell-tale. The BCA case demonstrates this reality. Their team shrunk from a robust 50 Boulder-based employees to a sparse 15 after the move to Washington. Undoubtedly, such large-scale shifts in business operations have considerable implications for local employment outré.
