RaceFace closing?
- Thread starter Evo.
- Start date
the jesus facepalm isnt strong enough for this stupidity
It's like, 2008 finally caught up to them.
This is strange, a sign of a company desperate for $$$ -- or maybe it's been got wrong? There is intellectual property (IP) value in a 10-year-old design of anything, if there's uniqueness in the design. So the question would be, was the IP artificially overvalued in order to get $$?
That's some serious bull**** right there. It makes me think Pollack required the over-valuation in order to get $$$, hoping the bank's due diligence would be lazy and/or trusting. In many loan settings due diligence is the say-so of the borrower, such as when the borrower and/or his/her company are known to the lending facility. Buddy-buddy deals are done frequently. If that happened here the bank's partly to blame.
I suggest it's down to greed and growth. Everyone who gets successful at a certain level of business thinks they are obliged to diversify and expand. I've watched that tack, that route, ruin more businesses than I've seen it help. I'd say when RaceFace moved away from its core machining work and original parts, it got grandiose and just floated along on loaned money until the grandiose idea went flat.
Niche companies usually survive by holding their niche with high quality gear. When they try to go mainstream and appeal to a wide audience they are going to need a lot of $$$ and honestly, a lot of luck. The luck comes from trend-spotting and jumping in at just the right time with just the right ideas, surfing fads and fashions. It's a high-risk enterprise and not one that is suited for most business types.
Hopefully the guys that did the machining will find employment. I'm pretty apathetic about the "brand manager" or other types of employees. They can find work more easily in this image economy.
If Pollack does form another company, you won't find me buying any of his products. Greedy crook. Worse than the common thief.
"Another breach allegedly occurred when the deadline for placing an aluminum order was missed and the company was unable to produce or fill orders for Atlas FR Cranks one of the companys biggest product lines for four months. Because of this, sales targets werent met and this situation contributed to the banks increasing scrutiny of the company."
How is this possible, what type of mrp system were they using?
Doesn't seem logical given vendors have your forecast and even w/ current 120 day lead times if you place a late PO the vendor should still be able to make your forecasted delivery date.
J
How is this possible, what type of mrp system were they using?
Doesn't seem logical given vendors have your forecast and even w/ current 120 day lead times if you place a late PO the vendor should still be able to make your forecasted delivery date.
J
note to self. If i ever own my own company, become a "contractor" for the company, and set my friends and family up as "consultants". Ensue payment of ridiculous wages. WIN everyone else loose
kinda sorta sounds like Crazy Eddie
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Maybe someone already commented but does THIS:
"Several sources report that Craig Pollack plans to start a new business shortly. Apparently, this planned venture will again focus on the bike industry but will start with protective gear as their core product line."
from the nsmb article have anything to do with the Roach rumors?
Did Roach possibly not go down under the Race Face banner?
"Several sources report that Craig Pollack plans to start a new business shortly. Apparently, this planned venture will again focus on the bike industry but will start with protective gear as their core product line."
from the nsmb article have anything to do with the Roach rumors?
Did Roach possibly not go down under the Race Face banner?
That was my first guess when i read that as well.
I had heard that Ingred was planning something on her own. Of course, RF had been asking about roach stuff recently as well. If things were as shady as they seem at RF, who knows what may happen.
"More than one source has alleged that Pollack rejected a proposal from the bank to keep the company operating that would have seen his compensation set at $150,000 a year - or $12,500 a month. He was said to have responded to this proposal by saying, Frankly, its not worth it for me to come to work for that little."
That statement made me sick to my stomache
That statement made me sick to my stomache
Times are tough but it's a shame that the employees weren't able to create something new (and hopefully buying the tooling at pennies on the dolla at liquidation) sort of like Indy Fab did back in the day.... Different scale operation that we're talking about here for sure. Know that it sounds sooo easy. Would just be great to see a COOLER core company rise up out of what was a cool core company.
TBH, I question what exactly he did in the first place if he was pulling sneaky moves like the aforementioned ones."More than one source has alleged that Pollack rejected a proposal from the bank to keep the company operating that would have seen his compensation set at $150,000 a year - or $12,500 a month. He was said to have responded to this proposal by saying, Frankly, its not worth it for me to come to work for that little."
That statement made me sick to my stomache
i hope craig pollack opens a protection brand so i can boycott it.
Careful what you boys believe. These may be coming from disgruntled ex-employees. Mr. Pollack needs to tell his side of story, which he's probably trying to figure out that's why he declined to comment.
He had to have done something wrong since they closed so fast without even an opportunity to be bought.
if he needs to "figure out" his story, something is fishy
That's effin awesome. Nice to see a good outcome.
Good news. Lets hope the former employees can get back on their feet now if they were still out a job. 