Advanced Sports Enterprises (ASE), the parent company of retail chain Performance Bicycle, as well as bike brands Fuji, Kestrel, and Breezer Bikes, has filed for Chapter 11 bankruptcy, the company confirmed Friday.

ASE was formed in August 2016 when Advanced Sports International merged with Performance Bicycle. The company also owns Bike Nashbar, SE, and Tuesday Cycles

[a certain President of the United States] approved import tariffs on 200 billion dollars worth of Chinese imports including $1 billion in goods in bicycle parts and components.

When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.

In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company.

In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.