Receivership Update

[WillyBWright]

I learned that a marina I used to work at (new owners since then) is in Receivership. Does that pretty much seal a business's fate, or can it be turned around? What does it mean to the employees? Right now their customer base (it's on a large lake) is thoroughly pissed-off due to crappy service attitudes. Would this be a good time for me to start a repair business myself? Or should I wait to see if they go belly-up? There are only two out of three dealerships left in town and if this one goes...

 

[RPJS]

Re: Receivership Update

There are two options for the reciever of this company.<br /><br />1. They can continue to run the company as administrators and look to sell it as a going concern. This type of recievership is very rare. If the company was worth buying there would be very few reasons to call in the reciever in the first place.<br /><br />2. They will stop tradding with the company and look to liquidate the companies assets in order to pay its creditors. This is the more common path taken. If you are looking to start your own business it may be worth contacting the reciever to find out there intentions, you may find you can step into a ready made company for very little outlay.<br /><br />Best of luck

 

[roscoe]

Re: Receivership Update

Usually there is more debt than the company is worth. Perhaps they took control of it to protect its value and force a sale. Or it is one of the good assets in a much larger multi location or multi-faceted company. (like skipr buds)<br /><br />Ok Willy, spill the beans, which one is it? Inquiring minds want to know.<br /><br />Will you hire me to clean the shop?

 

[WillyBWright]

Re: Receivership Update

Sure, I tell you and I gotta bid against you at the auction. Give ya a hint, it's the only one on water here in town. <br /><br />The weird part is that a couple of multimillionaires bought it. I figured they had deep pockets. But they took on way too much stock and tried to cater to a "higher" clientele...which there ain't that much of around here. From what I hear they had very little business from the lake, and now that they're headed south I'd bet the service bay is as empty as a cathouse on Easter. Happened before when the previous owner was about to lease to a mega dealer with a bad service reputation. Business dried up in the heat of summer. Word travels fast around here.<br /><br />Hey Roscoe, I may be working down river from you. Going for a couple of interviews on monday. Left Oshburg. Too far.

 

[roscoe]

Re: Receivership Update

Don't worry about me bidding against you, I can't afford the gas to get there.<br /><br />You left Osh-truk-EAA-RainbowPark-kosh? I thought that was a family deal? What happened, didn't they like the way you painted the test tank? <br /><br />Down river from Medford ? <br /><br />Good Luck.

 

[Nos4r2]

Re: Receivership Update

Just a thought-If you step into the shoes of someone who's got a bad reputation then until you prove otherwise you're kinda tarred with the same brush in my experience. Would it be worth a name-change if you do buy? I know it's kinda obvious but I've seen people do it before and not change the name. They quite quickly went down the pan too.

 

[WillyBWright]

Re: Receivership Update

I'm afraid I'm not in a position for a venture of that magnitude.<br /><br />The name would have to go and an agressive campaign to erase the reputation could be waged. "New Owners with a New Attitude" would probably wipe the slate clean with all new personnel and merchandise. The receivers would have to liquidate everything possible and a public auction held to empty the lot. That would allow a clean start. Keeping the existing motor lines and one or two of the boat lines would be about perfect. I'd add Johnnyrude because they sold them prior to the OMC bankruptcy and were well known for it.

 

[RPJS]

Re: Receivership Update

If you do take over this business you will experiance a "honeymoon" period, on average 4 weeks. Durring this period you will see a lot of customers who call in out of curiosity to see what you are all about. This is the time when you have to move heaven and earth to impress these people if you don't you will be fighting an uphill battle from then on. Your plan of campaign is very simple.<br /><br /> 1 Do everything possible to get people through your door.<br /><br /> 2 Do everything possible to get them to come back.<br /><br />Good luck.

 

[Tinkerer]

Re: Receivership Update

Do you get an overall advantage from buying a collapsed business?<br /><br />The assets of potential value to a new operator are:<br /><br />1. Goodwill, which in this case is no more than the willingness of past clients to return, if it exists at all. You might just get badwill.<br /><br />2. Customer records and mailing lists.<br /><br />3. Stock, but only if it's substantially cheaper than acquiring it direct from the supplier; the quantity and cost is not excessive for your needs; and it will move reasonably quickly or you've paid for dead stock.<br /><br />4. Location.<br /><br /><br />If you get the mailing list past clients can be directed to your business at another location without the cost of buying the goodwill, location or stock of the failed business, and without you being tarred with its brush. You could ask the receivers if they'll sell it to you, although it's an important asset that they may not want to sell separately if they're trying to sell the business as a whole.<br /><br />If you can't get the mailing list you can still reach some of the past and future customers through advertising, which the competitors might be trying to do also.<br /><br />Don't overvalue the mailing list as only a small proportion of the people on it are likely to become your customers.<br /><br />The collapse of the business has created a vacancy in the market which you might be able to fill a lot cheaper with a modest advertising budget than you would by buying the business.<br /><br />Unless US receivers are different to Australian ones, here's an important point to keep in mind when dealing with receivers and liquidators. Receiverships and liquidations tend to last until there's no more money in the business to pay the receiver's or liquidator's fees. They don't last any longer. When receivers and liquidators are getting to the bottom of the money barrel they're a lot more willing to negotiate and take what they can get. If the business or any assets are put up to auction and nobody bids, it's a great time to start talking to them.

 

[WillyBWright]

Re: Receivership Update

The marina officially closed in mid July. The parts were separated by brand and are being sold today via closed bids. Dealers within a 200(?) mile radius were sent invitations to bid. The Yamaha and Merc parts should be fairly current, but the Johnnyrude stuff is largely obsolete. They were a Johnnyrude dealer since the 40s and the others since the 90s. I haven't heard of an auction for the remainder, I'll post if I do. The property is still for sale as far as I know. The manuals and shop tools are not included with the parts and were not offered as part of the bidding. I see a boat or two in the showroom as well as a few loose motors. Accessories mostly sold in the waning days, but I expect some are left. The piers are still out and slip renters still keep their boats there. I expect allo that to clear out in the next few weeks since the season is all but over for the year. Unknown if it'll stay a marina or be sold for other use. It would be a good spot for condos, but I really have doubts that condos are much of a seller in this area. To be continued...

 

[WillyBWright]

Re: Receivership Update

I recently learned that the few remaining boats and loose motors are being auctioned on eBay. There won't be an auction. There were a lot of special tools and manuals. I don't know about the disposition of those, or the buildings and property.