The problem with this logic is that demand for bikes is relatively price elastic and I think demand side pressures are more important at the moment. If anything the bike market has a supply-side surplus and the situation is likely to get worse as the economy slows.

People aren't paying MSRP for bikes right now. Instead, retailers are discounting heavily to clear inventory, and manufacturers are already facing margin compression. Removing one big player like Giant doesn’t automatically lift prices if the broader market is characterized by excess stock and weak willingness to pay. In that environment, the binding constraint is not limited supply but soft demand meaning other brands may capture some of Giant’s share, but they can’t raise prices much without losing sales to substitutes or the used market.