Author Topic: MAG files bankruptcy  (Read 696 times)

Offline Luvmystar

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MAG files bankruptcy
« on: November 16, 2017, 07:16:25 pm »
Marc

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Offline PAULRIDES

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Re: MAG files bankruptcy
« Reply #1 on: November 17, 2017, 09:17:36 pm »
BIZZ is tough.

Betcha their executives make big salaries and bonus?   
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Offline Chris

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Re: MAG files bankruptcy
« Reply #2 on: November 18, 2017, 01:10:08 am »
This could shake things up a bit.https://www.asphaltandrubber.com/news/motorcycle-aftermarket-group-mag-chapter-11-refinance/

I think you're right.  It would be easy to say that it was poor management that got them into this fix but the reality is that the motorcycling world is shrinking in the US with fewer young riders to replace the aging baby boomers who have been the sport's economic lifeblood for decades.  That fact is bound to have lots and lots of consequences but at its most basic it boils down to a lot less cash in the sport for bikes, parts, services and support.  So the whole industry, top to bottom, is going to have to adjust to the new economic reality.  The motorcycle business has always been a luxury item here in the US and as such has ebbed and flowed in response to the economic state of the nation.  Good times were boom years for motorcycling and hard times were lean years for motorcycle businesses.  But the boom or bust cycle was always keyed to the stock market and unemployment news.  This time, even though we're in the middle of economic good times, the motorcycle industry is suffering badly with even our native miracle motorcycle success story, Harley Davidson, falling into a bad slump.  People have money to spend...it's just that fewer of them want to spend it on motorcycles.   This will change the sport but it's too early to predict exactly how. 
« Last Edit: November 18, 2017, 01:11:06 am by Chris »
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Offline Luvmystar

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Re: MAG files bankruptcy
« Reply #3 on: November 18, 2017, 07:29:07 am »
I think there are many causes of the turn.A little of alot.You have the base problem nailed but I you now have a generation who can't enjoy a peaceful ride or the serenity of a backroads trip.Its all about adrenaline and fast pace.Like we have seen the shear number of cars on the road has grown at a staggering rate and folks just only concern themselves with whats going on in their car not their surroundings which is making even being in a car more dangerous this is much worse to the bikes.On the other side of things the UTV craze is the thing right now and those things are crazy money.That will last till enough enviromentalists scream loud enough to start the closure of riding areas like we saw in the 90s.To the far other end and I think this is the group that could change the face of the industry is the teens of today.No interest in anything not run by a computer.Anything what can't be fixed by using a phone app is beyond them and too complicated.They will only ride if it becomes a necessity and it will be for the short trip to the store and back not for travel.Getting them will be the challenge.Much as I hate it I think the make up of how we travel in general will look alot different in 10 yrs.
Marc

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Offline PAULRIDES

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Re: MAG files bankruptcy
« Reply #4 on: November 18, 2017, 08:32:36 am »
Might just be too many suppliers to support them all - kind of like restaurants (hard for any of them to make a living as so many).

Change the thread a little -----

MC for me in 10 years -- Might not be that long before I be TOO OLD to ride anything.  :groan

More likely, by then be like a friend says "In hell riding a flame painted Harley."  >:D

Seriously, I do worry about the risk of riding, I am still willing to take the risk. There are a couple reasons I'm willing to take the risk: Main one is I Like Riding  :happyrider , No major family responsibilities to worry about as kids are up and gone, Getting old enough to worry about ending up in a care home ( :pop  :banghead ) - I'd rather die in a MC accident but hate to end up in a care home because of a MC accident.

So, ride on.  :happypep

That said, keep thinking about a 4 wheel vehicle instead: Rod, Limited Off-Road, Restored. Might be somewhat safer.     
« Last Edit: November 18, 2017, 08:34:39 am by PAULRIDES »
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Offline IanC

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Re: MAG files bankruptcy
« Reply #5 on: November 18, 2017, 01:58:28 pm »
Manufacturers need to team up with the MSF and start offering free MSF courses through colleges.
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Offline LuckyPuck

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Re: MAG files bankruptcy
« Reply #6 on: November 20, 2017, 08:02:39 am »
Manufacturers need to team up with the MSF and start offering free MSF courses through colleges.


Agreed,   Manufacturers have done a great job of bringing back entry level bikes but have done a terrible job of getting people on them.  Younger and female riders are what is needed to bring it back but until they make some headway on distracted driving and the pill and needle junkies behind the wheel I think there are a lot of people that that just pushes it over to the "not worth the risk."

My stepson is riding in Virginia (20 years old, some dirt experience)  and with the drivers on the roads now it scares the crap outta me.  The mistakes I was able to get away with as a new street rider in the 90's there's no way he will now.
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Offline Luvmystar

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Re: MAG files bankruptcy
« Reply #7 on: November 26, 2017, 03:54:16 pm »
Got this from another forum where a member manufactures some products.
There is definitely going to be a ripple effect throughout the industry.

Here are a couple more numbers that show how bad MAG messed up.

Chapter 11 filings give fairly large ranges of debt declaration once you get beyond the million dollar range, and there are several of MAGs holdings filing in the $100 million to $500 million range.

However, taking the smallest amounts possible into account, the MAG companies are filing for a combined amount in excess of $872,650,000. This means that real figure is likely above the $1 billion mark.

We do not sell to any MAG companies for this very reason. We have been approached multiple times over the years. But they always wanted us to extend them 30-90 day terms. While it is tempting to increase sales by doing this (look at all the companies that do), not doing so protects against this very thing.

Depending on how they handle it, there may be little direct/felt impact to bike owners. However, many suppliers will either go out of business, and/or be hesitant to sell to these companies, resulting in less availability of parts.
Marc

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Offline Luvmystar

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Re: MAG files bankruptcy
« Reply #8 on: November 26, 2017, 04:11:13 pm »
Heres just a little of the breakdown.

The filing lists more than 14,000 creditors, including Dealers, manufacturers, service providers and individuals. The largest creditors listed are Sumitomo ($3.48 million), Pirelli Tire ($2.3 million), Arai ($1.55 million), Anthem Blue Cross ($1.4 million), Bridgestone/Firestone ($1.28 million), American Kenda ($1.1 million), Avon Tyres ($1.03 million), Cobra Engineering ($984,220), Cardo Systems ($684,097), Yuasa-Exide ($567,843), KFI/Kappers ($547,605), Ogio ($546,359), Guangdong Dynavolt ($523,739), Power Sport Industries/All Balls Racing ($440,904), Camso Inc. ($431,093), Cheng Shin Rubber USA ($425,781), Warn Industries ($423,629), Continental Tire ($404,385), FMF Racing ($376,239), EBC Brakes ($356,933), First Insurance Funding Corp. ($351,654), Bluegrade Logistics ($336,948), Yoshimura R&D of America ($301,142), Shorai ($293,937), Inoue Rubber Co. Ltd. ($291,515), Vialink/Seizmik ($266,447), Google ($250,000), Vista Outdoor ($245,498), Maxima Products ($237,213) and United Parcel Service ($225,000).
Marc

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Offline PAULRIDES

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Re: MAG files bankruptcy
« Reply #9 on: November 26, 2017, 09:11:17 pm »
I can't imagine any supplier would allow $ Millions (even $100s of thousdands) in credit to anyone.
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Offline Luvmystar

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Re: MAG files bankruptcy
« Reply #10 on: November 27, 2017, 06:46:23 am »
It happens alot i'm sure.When Murray when bankrupt in 2003 I think they were in debt to Briggs and Stratton for several million.I forget the exact figure but it was 2/3 of their debt and Briggs basically bought them for what they were owed.
Marc

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