The Market Changes

Sekine Cycles’ period of little-challenged prosperity was short lived. A combination of competition, market forces, economic factors and random circumstances all contributed to the demise of the Sekine Canda Co. and the Rivers operation.

The Bike Boom that sponsored the interest in building Sekines in Canada tapered off. Hindsight tells us that booms, trends and fads are, by nature, temporary. Bicycle sales in Canada, and around the world, dropped, forcing companies to rethink their futures and production goals. 

In addition to that challenge, other issues surfaced.

Coming soon after steady progress up to 1974, some news caused some concern locally. 

The Canadian government saw fit to lower the tariff on bicycle imports, from 25% to 15%, in 1975.  This encouraged a new rush of imports, which proved to be bad news for Sekine Canada, as well as other domestic bicycle manufacturers of the time. A re-instated 25% tariff in 1975 provided some temporary relief.

The conveniently available labour force, which helped attract the initial investment, turned out to have a down side. Oo-Za-We-Kwun housed the workers and provided 50% of the employees’ wages for the first six months. The goal of Oo-Za-We-Kwun was to provide training to allow it’s clients to move on to un-subsidized employment elsewhere. For Sekine that meant high turnover of staff. As the manufacturing Component increased and more skills were required, that became a problem.

By 1978 Oo-Za-We-Kwun was finding that the $2 million annual operational grant wasn’t covering its training operations and its responsibility for maintaining the huge property. At the same time independent sources were beginning to question the whole concept.

To add to the financial concerns North American inflation rose in the 1970’s causing financial problems for companies financed by large loans. Sekine experienced cash flow problems related to the nature of their operation. There was a long time between the day the bike was assembled to the day they got their payment for that bike.

Sekine continued in production until the early eighties amid a series of ownership and investment changes as efforts were made to save the operation.

Oo-Za-We-Kwun was closed in June of 1980, eliminating the ready labour supply. Loans were called in and subsidies dri3d up. The Manitoba Government declared the operation  not viable and withdrew any support.


Sadly, in the midst of mismanagement allegations the company fell into receivership.  By 1981 the doors of the Sekine plant were closed and the assets sold off the following year, to help offset outstanding debts.  Sekine Canada would never recover, although Sekines were still manufactured in Japan for a time.

Oo-Za-We-Kwun was closed in June of 1980, eliminating the ready labour supply. Loans were called in and subsidies dried up. The Manitoba Government declared the operation “not viable” and withdrew any support.
Sadly, in the midst of mismanagement allegations the company fell into receivership.  By 1981 the doors of the Sekine plant were closed and the assets sold off the following year, to help offset outstanding debts.  Sekine Canada would never recover, although Sekines were still manufactured in Japan for a time.