Sad news about trailcraft

[tin can marlin]

One of Australias most admired brands trailcraft went into the hands of recevives yesterday. This is not a rumor but fact they have put a statement out to there dealers saying that the downturn in the econmy was to blame etc. The boat industry is in maybe the worst shape it has ever been in and our support is needed because if we all should be supporting locally built products etc because if we don't we will be all fishing out of rigs made in china which affects aussie jobs right from the welder to the painter to the suppliers etc. Good luck to all of the trailcraft workers and also the dealers. I do feel for the dealers with there stock as the boats will be sale proof without factory warrantys etc. Lets hope this is the last but sadly i think that is whichful thinking.

[levinge]

It is a sad fact to see a business go into receivership. In a very competitive market, those manufacturers who price their products at the higher end of the market, will, without doubt, be amongst the first to suffer.

People haven't stopped buying boats, they have just stopped buying expensive boats. Quite alot of the smaller companies which have turned their products to a competitive price, will survive this period.

Its evolution "Adapt or die" simple busines, but I do feel for all those at Trailcraft as they produced a nice rig.

[searay215ec]

Trailcraft has turned to shit since november and employees layed off at that time are still waiting entitlements now are the employees that were told the bad news today.
The biggest losers will be dealers that have paid for boats in full that are incomplete, trusts me i know.




Voluntary administration not receivership

[juju]

Jezz thats a bloody shame, they build a boat ok is a bit more $ than a (insert many other alloy brands) but you got what you paid for , a well built boat with a high level of finish, safety, and stength...I did a lot of looking around before i bought mine and it was just so much better than waht else was on offer in the sort of boat that i was after...we are more and more becoming people that buy throw away items....remember when you would buy a quality drill, now its a cheapy from you know where...and the result is now for those who want to buy the quality they have trouble seeking it out....penn reels..once USA now.....
Cars used to go to a workshop and get "fixed"...now they just replace a part instead of repair.....i reckon that there will be alot of trailcrafts still getting around in years to come but......one more thing, you would be getting a bit edgy putting down a deposit on a new boat on order these days...who else will go...esp in the smaller brands...my work is down , but i wont cut corners to "get the job"...i was talking to a fellow pestie yesterday who has switched to a generic brand termiticide to cut costs.....quality comes at a price and when things are bad looking to "save" money isent always the best option...

[tin can marlin]

Trailcraft has turned to shit since november and employees layed off at that time are still waiting entitlements now are the employees that were told the bad news today.
The biggest losers will be dealers that have paid for boats in full that are incomplete, trusts me i know.




Voluntary administration not receivership

Gee that is real bad for the dealers they must have paid early in good faith that the boat was going to be sent. I think that it is important that people go in and support the dealers with these boat and maybe just which them well or buy some bait or a rod or something just to show that ausfish members care about there businesses and there staff.

[Grumpah]

It is really sad news when any Oz firm goes in but even worse when it's local.

It makes me wonder why more of those that are still trading do not take better care of customers like me who are awaiting news of their ordered boats but can get none. Do they think they are immune to falling down the hole. I would have thought that any manufacturer who has customers waiting today would be doing their darndest to make sure they stay happy - or they might end up with a pile of unsold boats on their hands.

I feel sorry for Trailcraft and particularly the staff who make the craft, because usually they are the biggest losers. Receivers are usually the winners because they will always get their fees and often exorbitant ones at that.

Juju - I reckon you're spot on about maintaining the quality, but you also must keep up or increase the customer service because in any business - its word of mouth that can save you or kill you and those well informed, happy customers with a quality product are worth their weight in gold in terms of future business. I believe that for every happy customer you might get 2 or 3 referrals - but for every unhappy one you'll get 20 or more who badmouth or even exaggerate the poor service or quality.

Which is all a little off topic but there you go.

Cheers.

[juju]

Juju - I reckon you're spot on about maintaining the quality, but you also must keep up or increase the customer service because in any business - its word of mouth that can save you or kill you and those well informed, happy customers with a quality product are worth their weight in gold in terms of future business. I believe that for every happy customer you might get 2 or 3 referrals - but for every unhappy one you'll get 20 or more who badmouth or even exaggerate the poor service or quality.

Which is all a little off topic but there you go.

Ive have gon the way of investing more money in equipment (eg new thermal camera, and a remote video inspection camera)...the problem is i have to charge the same as the less equip guys/companys..im a solo one man op....i will no cut corners...i lose a few to the cheap guys...but id rather do quality...

[White Pointer]

G'day,

Please don't bury the patient while they are still alive!

Voluntary administration may afford the opportunity for the business to trade on while they adjust to difficult times.

The employees may just depend on us waiting and not passing judgement.

Sound familiar?

White Pointer

[Grumpah]

White Pointer has a good point.

Voluntary admin to my mind simply means someone is in there counting. If the business has been well managed and the assets haven't been mortgaged or sold, there is often a good chance as business can survive. If the management of Trailcraft have moved early enough it might just be that they and their people will live to fight another day, albeit maybe as a reduced operation. Lets hope.

Cheers.

[Noelm]

This may seem a little naive, but explain how an Administrator can save an ailing business, but the owners cannot (who may have operated for years and years) seems more to me like Administrators now, receivership next week, just sort of goes together, I hope I am just being my usual negative self here, and fail to see the obvious!

[Noelm]

By the way, this is not speculation on the current business (trailcraft) it is just a related question.

[backlash08]

Noel, in some circumstances current owners or manages 'cant see the trees for the woods' or can't identify bad costs or lost opportunities, simply too close to the business. This is certainly not always the case and I have no idea about trailcraft but I have seen, through my business relationships, a number of organisations come out of vol admin and prosper with a new way of thinking so that is how SOMETIMES administators can be good for an enterprise
cheers - Craig

[Outsider1]

This may seem a little naive, but explain how an Administrator can save an ailing business, but the owners cannot (who may have operated for years and years) seems more to me like Administrators now, receivership next week, just sort of goes together, I hope I am just being my usual negative self here, and fail to see the obvious!

A Receiver is appointed by creditors and has only one focus, realising the assets of the business to repay creditors. They would only continue to operate the business if this was perceived to add value to the assets they are trying to sell.

A VA is appointed by the directors and/or shareholders of the business to assess its financial position and options and draw a line in the sand. They may, or may not be able to revive, revamp or re-organise the business with the agreement of creditors and shareholders into a viable ongoing business. If creditors are not satisfied with a VA, they will normally appoint their own receiver who would takeover from the VA.

No guarantee that a VA will produce a better result, but they can do, and at least suggest some hope of doing so. The only chance of a revival of a business in receivership is a white knight investor, and they are as rare as hen teeth in that situation. They instead normally wait in the background to buy the assets at fire sale prices if they really want them.

[Noelm]

yep, I guess there is a possibilty that the owners are just "riding on the wave" of the good old days, and habits are ingrained, but you would need to be a pretty bad business person, and have not read a Newspaper for the last year to not know things are not too rosey at the moment.

[TimiBoy]

Voluntary Administration brings in a third party to run the business.

A meeting is held with all creditors to examine the company, and discuss options. About 4 weeks later those creditors come together again, examine the plan, and put it to a vote. A 75% majority is required to keep the business running.

Usually it is effective when the Business is being pursued over something relatively small. It enables all creditors to be dealt with at once, and often comes up with deals they can be happy with, renegotiating their finance contracts and setting up payment plans for unsecured creditors.

The nett result is everyone does better than if a liquidation occurs. No one wins one of those. The business keeps running, and everyone gets their money.

It is also a useful tactic to stave off one entity trying to send you broke. If they are less than 75%, they fail in their action, and everyone else votes for the plan that gives the ratbag nothing. Pretty funny really. Trouble is in the future it can be hard for the company to get finance, as it goes "on the record".

Also if an insolvency (cannot pay their bills on time) is applied for against a business, that business will often chuck it into a VA, as this will hold up the insolvency process, bring in all the facts, and make a liquidator very edgy about getting involved, if assets are not there to fund their action. They are expensive. So it is often the case that liquidation won't happen. No one really wants it, unless they are a stone cold ar$ehole.

Note; A person cannot apply for VA, only a company can. Companies are liquidated, people are bankrupted. There is a difference.

I hope this helps. It also does not represent legal advice, as I AM NOT A LAWYER!!!

Cheers,

Tim