MAG Files for Chapter 11

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11/17/2017 9:47 AM

ML512 wrote:

Talked to some guys there last night. Good part, it won't affect Answer, Pro Taper or anything I know of in moto for current ...more

I'm sure the new owners will have something to say about that.

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11/17/2017 10:55 AM
Edited Date/Time: 11/17/2017 10:56 AM

ML512 wrote:

Talked to some guys there last night. Good part, it won't affect Answer, Pro Taper or anything I know of in moto for current ...more

smit9722 wrote:

I'm sure the new owners will have something to say about that.

What about all the vendors/companies that TR owes $$ to, they have no certainty to collect their $$?

Horrible timing, as most companies have just loaded up TR with their new Fall product lines, now that debt is in question, on hold, no certainty on if/when the account will be paid up.

This could cripple smaller companies that depend on the cash flow, they won't be in a postion to simply write off tens of thousands of $$ (or more!)

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11/17/2017 11:53 AM

Gukamonster wrote:

That article is written pretty well. This part stuck out to me, in a "doesn't look good" way:

In order to finance these ...more

The guys that loan the DIP financing for bankruptcies charge a high rate, and are first inline to get paid. In a lot of cases they end up with ownership of the company. These new lenders may have bought MAG for $135 million.

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11/17/2017 11:59 AM

ML512 wrote:

Talked to some guys there last night. Good part, it won't affect Answer, Pro Taper or anything I know of in moto for current ...more

kkawboy14 wrote:

It is impossible for those guys telling you what they told you to know what’s gonna happen. In a chapter 11 all of the ...more

You mean the Creditor's Attorney's will file a motion for said actions...or there will be requests filed with an arbitrator to trustee...etc.

And it goes on & on & on from there.

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Out here in the fields, I fight for my meals. I get my back into my living. I don't need to fight, to prove I'm right. I don't need to be forgiven.

11/17/2017 2:35 PM

Xeno wrote:

I wonder what caused this fiscal imbalance...whistling

Photo

Haha yes it was the Villopoto gear contract that put them over the cliff...

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11/17/2017 8:17 PM

Somewhere in a small town called Janesville, WI, a bunch of guys are smiling and thinking "we told you so!".
You can't keep going on in business if you keep borrowing money to back up your unrealistic programs to beat your competitors by constantly underquoting them, extending credit without insurance, offering consignment programs just to get real estate inside dealerships and never move products on the back end.

I hate to see people lose their jobs and I hope it won't be the case but the new owners will clean house, restructure, liquidate some assets. It's a small industry and it's not growing, the pie wasn't big enough for the 3 big players.

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The Journey is the Destination

11/17/2017 8:23 PM

ML512 wrote:

Talked to some guys there last night. Good part, it won't affect Answer, Pro Taper or anything I know of in moto for current ...more

kkawboy14 wrote:

It is impossible for those guys telling you what they told you to know what’s gonna happen. In a chapter 11 all of the ...more

TeamGreen wrote:

You mean the Creditor's Attorney's will file a motion for said actions...or there will be requests filed with an arbitrator to ...more

Yep....all that translates to, I would get another job as fast as I could!

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11/17/2017 9:33 PM
Edited Date/Time: 11/17/2017 9:35 PM

newmann wrote:

Amazing what happens when you remove the passion that built it and replace it with greed.

Newmann I totally agree with you on your statement. Greed is the passion now, not motorcycles. I am so glad I am retired. I am 55 and worked in the motorcycle industry for 30+ years and started riding when I was 5 years old. I closed my shop over 5 years ago. It used to be the industry was all owned and run by motorcycle enthusiasts. Everybody rode, raced, owned bikes and loved motorcycles. It was one big happy family for years. Then the greedy "Bean Counters" came along and started buying dealerships, companies, and distributors. Things started changing for the worse quickly. Bean counters did not ride motorcycles and were clueless except for counting beans. I know of many dealerships that were bought up, then they would fire all the long time employees. Bean counters just replace them with people with little or no knowledge of motorcycles at minimum wage. They would sell off must of the inventory of parts and then just order everything. The less inventory the better. I knew of a few dealers that were bought and did not even keep spark plugs in stock. WTF? Then Tucker Rocky and others joined up with the MAG group. Shortly after that Tucker Rocky fired a lot of their sales reps and others. Some of them were long time friends and they were Tucker Rocky sales reps. One of them was with the company for 30 years, was one of their top salesman in the country. They just fired him along with many others. A lot of upper management were fired the day before. The future is not good for the motorcycle industry. The biggest problem for the industry will be the lack of new riders and us old farts that do ride are fading away. Young people could care less about motorcycles these days. They are expensive, dangerous, and too hard to ride with a electronic device in your hand. Sad but true.

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11/17/2017 9:55 PM

Shenzi wrote:

Somewhere in a small town called Janesville, WI, a bunch of guys are smiling and thinking "we told you so!".
You can't keep ...more

Parts Unlimited in Janesville, WI will continue on for now, but their sales numbers are not so good either. I know some long time Parts Unlimited employees that have already quit. I also know quite a few other employees looking to get into another career so they can quit Parts Unlimited ASAP. I know of quite a few people that own powersports dealerships and they are all for sale. Sign of the times...

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11/18/2017 7:23 AM

newmann wrote:

Amazing what happens when you remove the passion that built it and replace it with greed.

wfo4ever wrote:

Newmann I totally agree with you on your statement. Greed is the passion now, not motorcycles. I am so glad I am retired. I am ...more

You just summed up the entire motorcycle situation in my small town. All the dealers used to ride and race. They could all bore a cylinder and press a crank. The old guy at the Honda dealer was a multi patent holder for tool and die making and built his own dyno before there were motorcycle dynos. He made it from Southeast Texas to the podium at Daytona building Triumphs back in the 60's. He set speed records at Bonneville on a Can Am that he turned the cylinder around on and watercooled. The guys in the back at the Yamaha shop could weld in the gusset kit Yamaha supplied with the warranty replacement frame for your 78 YZ80 that crumbled to pieces. They could also be spotted in the movie On Any Sunday. The Suzuki dealer was a master at tuning stuff for the track. Machining, porting, tweaking...it was like there was a little bit of Mitch Payton at every dealership in town.

Now, it is all bought up and under one 50,000 plus sq ft dealership on prime interstate real estate with elevators and a heli pad on the roof. They have three spark plugs on the shelf for your 6 cylinder Gold Wing and no 1/4 inch or 5/16 bulk fuel hose on a roll. Even sadder was when I posted a mini rant here in regards to my fuel hose dilemma a good portion of the replies posted were bashing me for getting pissy over something as simple as a foot of fuel line. It just proves my point even more.

Lose the passion, embrace the suck.

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11/18/2017 8:14 AM
Edited Date/Time: 11/18/2017 8:16 AM

newmann wrote:

Amazing what happens when you remove the passion that built it and replace it with greed.

wfo4ever wrote:

Newmann I totally agree with you on your statement. Greed is the passion now, not motorcycles. I am so glad I am retired. I am ...more

newmann wrote:

You just summed up the entire motorcycle situation in my small town. All the dealers used to ride and race. They could all ...more

You summed up all the dealers in Austin except TJs. You walk in and try to decide if you want to talk to the salesman who can’t make any deals and who just runs the deal to the guy in the tower that will decide the deal, the 18 year old kid behind the Parts desk that knows nothing about bikes and is telling you how he wants to go riding but doesn’t ride, the 21 year old annoying girl who knows less the the 18 year old guy OR the 30 year old Service guy that can’t fix your flat for 2 weeks.

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11/18/2017 1:18 PM

Dirtbikes just don't make money anymore.

Low volume and no reason for families to stick it out since not many pros can make decent money

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11/18/2017 2:48 PM

Derek Harris wrote:

Dirtbikes just don't make money anymore.

Low volume and no reason for families to stick it out since not many pros can make ...more

Not just dirt bikes. If a smaller dealer can move 30 units a month of any type ,they are lucky. During the water craft boom in the 90's, 100 unit months were the norm in the summer months here for our local mom & pop shop.

It's more of a decline in people interested in motor sports altogether. Powering up the smart phone is as much risk as many take today.

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11/18/2017 3:13 PM

While the current market isn't exactly setting the world on fire, they didn't dig this hole without making a lot of huge mistakes. I certainly wish the news was that the entire industry was making big increases as I'm sure several brands will be hurt quite substantially and I'm sure there will be a lot of lost jobs which really sucks.

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11/18/2017 4:31 PM
Edited Date/Time: 11/18/2017 4:32 PM

Derek Harris wrote:

Dirtbikes just don't make money anymore.

Low volume and no reason for families to stick it out since not many pros can make ...more

project racer wrote:

Not just dirt bikes. If a smaller dealer can move 30 units a month of any type ,they are lucky. During the water craft boom in ...more

Agreed.

Plus, with the constant amount of retraction in the sport (especially w/one of the big five, like Suzuki, MXGP) there is real concern that the sport may actually go away. Seriously.

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much ty. How to spot a paid forum poster/artificial forum traffic producer (see list of actions/phrases below):

Copius pattern amounts of phrases like “Anyone have”..., “Anybody know?”.... and their variations.

Thoughts?
Any help is appreciated!
Thanks in advance!





11/18/2017 5:37 PM
Edited Date/Time: 11/18/2017 5:39 PM

project racer wrote:

Not just dirt bikes. If a smaller dealer can move 30 units a month of any type ,they are lucky. During the water craft boom in ...more

project racer you are correct and very knowledgeable. Watercraft is what helped keep a lot of dealers going back in the 90's. Unit sales are way down now and are only going to get worse with the lack of no new riders. They want to all be safe and power up the latest Apple X smart phone, android phone, or some kind of electronic device. I used to work in parts at Honda Kawasaki Suzuki West in Tampa, Florida in the 80's and early 90's. We were a full line dealer but were a motocross based shop and business was great. Dade City MX and Crooms were less than an hour away. We stocked lots of MX inventory. If a customer needed a part for their MX bike we usually had it in stock, we always had the latest MX gear, and yes, we even had rolls of different size fuel line for newmann, We had a very good base of motocross customers and gave them all discounts. I used to have the pleasure of dealing with some of the nicest people that were our customers. I bet you might know a Mr. Haynes, he was always a pleasure to deal with. He was one of my favorites. We also sponsored Vince Devane, Ricky Hampshire, the Youngblood twins, and many others. I also raced at Dade City, Crooms, and lots of other places in that area. Memories...

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11/18/2017 5:59 PM
Edited Date/Time: 11/18/2017 6:00 PM

wfo4ever wrote:

project racer you are correct and very knowledgeable. Watercraft is what helped keep a lot of dealers going back in the 90's. ...more

I remember Honda West. Actually have a Newman type story when I was in there about three months ago. It's some conglomerate mega brand store now. Not the same as it was.

Wanted a 3.50-8 tube for a Honda Z50. They only made those bikes for about 50 years. I know they were very unpopular. No tube, but they got on their parts locating network, and said there was one available in Sarasota, if I did not mind driving an hour each way.

I drove down Nebraska avenue, to a little hole in the wall shop, where they had just about every size tube stocked that you can imagine.

Rode all of those places you mentioned. My older brother worked with Herbie Youngblood ,the twins dad. Herbie would drag in beat bikes for my brother to weld back together.

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11/18/2017 6:03 PM

Is there a possibility that the positive that will come from this is that when the equity groups and bean counters that have taken everything over divest their interest and walk away, from the ashes passionate individuals and small businesses will rise again?

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11/18/2017 6:06 PM

Ferro wrote:

Is there a possibility that the positive that will come from this is that when the equity groups and bean counters that have ...more

In a Free Market system whenever there are losers there will be winners! That’s why Bankruptcy laws were enacted!

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11/18/2017 6:25 PM

Shenzi wrote:

Somewhere in a small town called Janesville, WI, a bunch of guys are smiling and thinking "we told you so!".
You can't keep ...more

This. When the recession hit, Tucker Rocky offered dealers delayed billing, and took a ton of share from Parts Unlimited, but ultimately if their products do not check out at retail and sell through, they will be in trouble.

WPS has also been on the move, and growing share, not to mention, they are attacking the SxS market (only bright spot for growth in powersports) with much better offerings that TR or Parts Unlimited.

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11/18/2017 6:35 PM
Edited Date/Time: 11/18/2017 6:36 PM

Ferro wrote:

Is there a possibility that the positive that will come from this is that when the equity groups and bean counters that have ...more

If there is a market for it, if internet sales cease, and if the technological (social media, cell phones, etc.) forms of entertainment, through distraction, goes away.

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much ty. How to spot a paid forum poster/artificial forum traffic producer (see list of actions/phrases below):

Copius pattern amounts of phrases like “Anyone have”..., “Anybody know?”.... and their variations.

Thoughts?
Any help is appreciated!
Thanks in advance!





11/18/2017 7:02 PM
Edited Date/Time: 11/18/2017 7:05 PM

project racer wrote:

Not just dirt bikes. If a smaller dealer can move 30 units a month of any type ,they are lucky. During the water craft boom in ...more

wfo4ever wrote:

project racer you are correct and very knowledgeable. Watercraft is what helped keep a lot of dealers going back in the 90's. ...more

project racer wrote:

I remember Honda West. Actually have a Newman type story when I was in there about three months ago. It's some conglomerate ...more

I always made sure to have 3.50 x 8" tubes in stock for the Z-50s. Sold a lot of those tubes. We used to give the Youngblood twins bikes for the season. They were hard on bikes for sure. Herbie is a great guy but he did not have a lot of money..He was trying to keep the twins racing and raise his family. Our shop helped him out all we could. I used to try to keep those bikes looking good on my own time. I would put the numbers on the plates, our shop decals, their other sponsor decals and then put clear over that to try to protect the plastic and decals.. The shop wanted the bikes looking professional at the races so I did all of this at night after work on my time for no pay. I did up a lot of plastic like that for those boys. Also Norm one of our mechanics would do all the engine work, porting, matching the cases, head work and lots of top ends and rebuilding cranks on his time. That was our passion for racing and doing it for free too. I also went to all the races with lots of spares for those twins. I heard the shop in Tampa had been sold to bean counters and went down hill just like most dealerships in the country have. I need to come see Randy Yoho at Dade City MX and Dean Dyess at Orlando MX Park next time I come to Florida. I also have a lot of moto friends as well in Florida to visit.

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11/18/2017 8:36 PM

Man this is all pretty sad. Most people writing here remember a time of going into your local bike shop and being able to get want you needed, most times in stock, from the guy behind the counter who most probably knew you and didn't need to look up the computer to find the part number and it's location on the parts shelf.
Now nothing is stocked because that's how you save money these days???, requires a deposit before they will order it for you so a trip in for that at the start of the week and then there's a better than average chance the distributor doesn't stock it either because they are saving money too, so it has to go on back order! And when the darn thing turns up it's the wrong part because peach fuzz behind the counter has ordered the wrong part.
My thoughts,
Everybody discounts heavily so you have to sell 100 to make what used to be made in 10
Money is tight from tight margins so wages are tight and the guys with the experience and passion have moved on to better paying gigs
Nothing is stocked anymore. Can't sell what you don't have.
Costs are so high for everything (purchase price, maintenance, racing costs, track fees, limited free riding spots), people move on to other entertainment or sports.

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11/18/2017 9:24 PM

Side by sides are what the dealers make money on, sooner y’all realize that the better. Not very surprising, but still sucks to hear.

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youtube.com/iridea250fyamaha

11/18/2017 10:28 PM

Underground wrote:

Man this is all pretty sad. Most people writing here remember a time of going into your local bike shop and being able to get ...more

I can go into a local shop just to look around and I always end up helping a customer or an employee or both trying to figure out what part they need or what is wrong with their motorcycle. I explained to two parts guys what points were a few months ago when someone on the phone needed points and they were clueless. Another time recently I helped an older customer figure out what year and model Yamaha he owned by getting him to describe the motorcycle to me by asking simple questions about the bike.I then informed the customer he owned a 1973 Yamaha CT-3 Enduro. He thanked me.for helping him and left the dealership. Not one employee ever tried to help this customer or myself, several employees walked right by us too. I left the local dealership also and will never go back there again.I went home and ordered what I needed from Amazon and had it in 2 days on my doorstep for about 10% over dealer cost with free shipping But I did decide to call that local shop after I got the part. I gave them the Yamaha part number of what I ordered from Amazon and the local dealerships price was 15% higher than the Yamaha retail price for that same part. This is why i order my parts online, I know what to order, i get a lower price, free shipping, and quick delivery to my front door..The local dealerships have nothing in stock, there prices are above retail, they have clueless rude employees and have terrible customer service.

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11/18/2017 11:31 PM

Australia is almost identical at the dealers. Still a few small shops around. The big chain dealers have almost taken over here.

I imagine that in the 70's there were people involved in other sports complainig about mx and surfing and wondering how it compared to their sports though. End of the day you cant make people participate.

Governing bodies can look after the grass roots of the sports and try to keep costs down with intelligent class/age groups though.

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11/20/2017 4:35 PM

isn't this the same company that bought then ran Sports Authority to ground?

https://www.ibj.com/articles/47979-merger-forms-382m-indy-based-motorcycle-parts-company?v=preview?v=preview?v=preview?v=preview

I would say it doesn't look good given their history.

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11/20/2017 7:09 PM

I live in N E IL and back in the 70s the dealers didn't stock shit and took forever to get . Now, there were a lot of dealers around but they sucked . Now if you need something they have it in usally 2 days . If you needed a rare part back then you were down all summer , today probably find it in 3 days online . As far as parts go I'll take today over yesteryear any day

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11/20/2017 9:28 PM

MX558 wrote:

I live in N E IL and back in the 70s the dealers didn't stock shit and took forever to get . Now, there were a lot of dealers ...more

Apparently the grass was greener in the 70's. Guys at every shop could widdle a set of engine cases from an oak tree within a half hour, and there were enough parts stocked to build 3 complete bikes, just sitting on the shelves. If I order a part from WPS or Parts Unlimited before 3pm it is here the following day. Rarely it will take 2 days. Any part from any OEM manufacturer is 2 days away, barring backorder, I find it hard to believe the 70's shops had that kind of capability.

Shops charge a deposit on parts because people order shit and disappear all the time. Then a shop is stuck with a completely useless piece of inventory. It is not rocket science.

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Tomac and/or Anderson for 2020.....

11/21/2017 2:42 AM

MX558 wrote:

I live in N E IL and back in the 70s the dealers didn't stock shit and took forever to get . Now, there were a lot of dealers ...more

BobPA wrote:

Apparently the grass was greener in the 70's. Guys at every shop could widdle a set of engine cases from an oak tree within a ...more

How long until Amazon can get parts to people the same day?

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