Matthew Zeichert

The cooperatively owned bike shop on the U of M campus announced it will close Sept. 30, citing continued financial challenges in the bicycle industry. 

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Story by Matthew Zeichert  / August 6, 2024

The last brick-and-mortar bastion of biking in Stadium Village is closing its doors for good. 

The Hub Bike Co-op, the only cooperatively owned, for-profit bike shop within the Twin Cities, called it quits via Facebook and Instagram on Friday with an emotional post. The post cited “continued challenges and changes in the bicycle industry and the financial impacts of those changes” for ending its business operations. 

According to the post, The Hub’s last day of business operations at both its Minnehaha and Oak Street locations is Sept. 30. 

The Oak Street location, located across from a cluster of University of Minnesota dorms known as Super Block, is nestled into the five-story Oak Street Parking Garage space.  The company’s slogan is displayed on the inner wall of their university location: “All types of bikes for all types of people.” 

The Hub’s operating structure has been a traditional co-op since its opening 22 years ago. 

“We currently have six worker-owners, but no singular boss,” said Cristina Montoya, a worker-owner who began working in bike stores in rural Minnesota. Montoya said they take part in votes with five other worker-owners to make major decisions. The closing of the Hub was one of those decisions.  

Montoya said the cloistered location and small space of the 401 Oak St. SE store has been far from ideal. Montoya started working for the co-op in March 2021, becoming a worker-owner in October 2022 after putting in the 1,000 hours of work necessary to achieve that status. 

Montoya said the workplace is both democratically run and inclusive. In the past, the Hub partnered with LGBTQ+ organization Grease Rag Ride and Wrench on a monthly basis for various events. “I love that I am a worker and an owner of a company with a focus on diversity, equity and inclusion,” Montoya said. 

“The great thing about a cooperative is it makes owning a business more economical,” Montoya said. 

But the changing economics of the bike industry  — specifically, the ability of consumers to purchase cheaper bike parts directly online from large manufacturers — has eroded the business advantages of the coop. 

“A major part of our income stream is selling parts. We have an online presence, but we can’t compete with other online retailers like Amazon,” said Andrew Magill-Grimm, a Hub employee, while meticulously repairing the spokes of a wheel. 

Also affecting sales has been increases in prices from aluminum and import tariffs and an increase in so-called “micro-mobility” via e-bikes and scooters from companies such as Lyme and Veo.  “Operating in the bike economy becomes much harder,” Magill-Grimm said. 

With the Minnehaha location closed for a few months, the university location acted as the co-op’s only source of revenue. A decrease in cycling sales following the COVID-19 pandemic ultimately meant the co-op couldn’t sustain itself financially. 

The worker-owners voted to close the store. 

The Hub plans to sell its remaining inventory over the next two months. Completed repairs should happen no later than the store’s closing day. 

After that, University of Minnesota student and staff cyclists will have to venture to Erik’s in Dinkytown, Freewheel Bike in the Cedar-Riverside area or other off-campus bike stores for their specific needs. 

University of Minnesota Parking and Transportation Services, which granted The Hub free rent for the duration of their time on campus, will take over its physical space.