A Bentonville-based bike shop is making plans to open its ninth location.
CBTR Investments Inc., which does business as Phat Tire Bike Shop, has agreed to sign a lease to open a store in the old post office in downtown Siloam Springs at 101 S. Broadway St.
The Siloam Springs Board of Directors approved the lease agreement at its regular meeting Tuesday (June 6).
The city, which owns the building, has agreed to spend $350,000 to bring the 6,620-square-foot building up to standard, and the project is expected to be finished by Aug. 1. Phat Tire will sign a 30-month lease, contingent on the renovation being done by that date. If the city doesn’t complete the work by Aug. 1, Phat Tire has agreed to a 25-month lease beginning January 2018.
At the end of the lease period, the city agrees that Phat Tire has the option to either renew the lease for another year or purchase the building.
Phat Tire is owned by Chris Brosh and Tim Robinson. They are Benton County natives who opened their first store in July 2007 in downtown Bentonville.
The company has grown to more than 50 employees. In addition to the flagship store in downtown Bentonville, there are stores in Springdale, Fayetteville, Fort Smith, Tulsa (2) and Rogers. A store in Bartlesville, Okla., is also planned to open later this year.
Phat Tire is a full-service bicycle sales and service shop that also sells bicycles accessories, nutrition, clothing and other related items.
The Siloam Springs store also plans to sell kayaks, stand-up paddleboards and other watersport accessories to complement existing recreational opportunities in the city, namely City Lake and Sager Creek.
The Siloam Springs store will have three full-time employees and will be managed by Phat Tire’s Director of Operations, Nickel Potter.
Revenues are projected at $250,000 and $350,000 for the first two years, respectively, according to the company’s operational report filed with the city. The owners expect the store to be profitable by the third year.
Estimated cost to open the store is $40,000.
Potter has been with the company for seven years. He was promoted in 2012 as manager of the Fayetteville store, opened the Fort Smith location in 2014 and became director of operations in 2016. That same year he opened the downtown Springdale store and led the acquisition of both stores in Tulsa.