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The guy behind the guy |
This isn’t about “management,” this is about private equity. Has anyone seen what managing a company that is owned by a private equity group is like up close. I have. My industry is construction. I have a friend who runs a construction company owned by a private equity. When a bad year is coming, I duck and cover. I keep my best and maybe lay off a few so I can break even or maybe lose $100-200k but I live to fight another day. When the next year’s economy is better, I have all my studs locked and loaded and we hit it and make money. I’m not smart and that’s not a secret in our industry. My friend doesn’t get to do that. Nope, he must produce on the bottom line. There is no break even and wait for next year. It’s produce now or else. So he has to cut deep, losing good people and make money come hell or high water. Then when the economy picks up a year or two later, he has to chase a big year without the right horses. So he’s using folks who are under experienced or who he tried to hire away but don’t know his company...it’s a mess and it’s hard, but it’s what he has to do. This is a high risk scenario and when you’re busy and a job goes sideways...disaster happens. As my dad trained me, overhead doesn’t kill good construction companies, bad jobs kill good companies. Under experienced project managers is a great way to land a bad job. I’d admit he’s a better tactician in our industry than I am, but if/when his company files for bankruptcy, it will be “management’s” fault. I will never work for a private equity. It’s awful. If you’re wondering how these guys make so much money despite bankruptcy, this is exactly why. They are given mission impossible and driven into the ground. The pay is the only thing that keeps them around. Private equity doesn’t understand your business, they don’t understand your customers or your employees. They just want an ROI this year and don’t care about anything else. Also, they strip the cash annually, so when the company is dead, they don’t care about the carcass. You’re one of 200 businesses they own, they don’t care about your problems. It’s like the Mob, show with my envelope of cash or else. Cerberus doesn’t view Remington’s success as whether or not it declares bankruptcy, or how many times it does. Cerberus judges Remmington’s success based on how much cash it contributes to the mother ship in between bankruptcies. | |||
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Member |
Well said. Private equity is essentially no different than the mob coming in and cleaning out a business. Private equity firms are a cancer and as they exist now a serious threat to the long term financial security of our country. Caring only about each year’s profitability, or worse quarter to quarter, is exactly the opposite of how to build wealth. Many of the leaders of these private equity firms are nothing more than charlatans trying to separate a business from their wealth. “It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.” | |||
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PopeDaddy |
Sure hope the Remington plant in town keeps going. I know an upper level guy over there. His son is a scout with mine. It’s brand new and state of the art....with a higher than average educated workforce available to them to hire from. That the Navajo are the buyers is a very interesting move. It certainly can’t be worse that the typical private equity nameless jackass groups out there and it may be a heck of a lot better. 0:01 | |||
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Member |
So many factors leading to this. Corporate Greed Personal Greed and incompetence by management - Cronyism Education has declined dramatically /rant Society Problems - Everyone is a winner - If you mess up someone bails you out mom/dad, to begin with - loss of values - everyone here I'm sure could add more to this list. /rant off __________________________ My door is always open to Sigforum members, and I'm always willing to help if I can. | |||
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| Member |
The Indians have A LOT of money from their casino's. Just look at the Seminole tribe in Florida, they make so much money they don't even know where to put it all or what to do with it. So chances are if they bought Remington, they'd put the investment needed to make a well made company and product out of it. | |||
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semi-reformed sailor |
My first thought is, “that’s brilliant!” Why? Because when government contracts are awarded, several things are figured into buying the item...with ownership being a HUGGGGGEEEE part of it, starting with minority owned, female owned, small business owned, etc down the scale.... Being that Remington will be minority owned will put them right on the top of the list. "Violence, naked force, has settled more issues in history than has any other factor.” Robert A. Heinlein “You may beat me, but you will never win.” sigmonkey-2020 “A single round of buckshot to the torso almost always results in an immediate change of behavior.” Chris Baker | |||
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| Member |
Does anyone else see the irony in this?  I have to believe that their ancestors are smiling down on them from the great hunting grounds. | |||
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| Member |
The Navajo Nation had previously said that they would suspend sales of Remington's "tactical" products to civilian markets in their previous unsuccessful attempt to purchase Remington from the current owners. Only hunting-oriented products would be available for us plebeian types. Wonder if they still feel the same way now. -MG | |||
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| Gracie Allen is my personal savior! |
If they're smart, yeah. As my old wrestling coach used to say: "Get to your base!" Once they've got a solid foundation, depending on who's in the White House, they can always change their minds. | |||
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Member |
I hope so. I’ve never considered Remington a source for anything but hunting products. I do have a Bushmaster, but it is a pre-Remington Windham rifle. I wish Remington would get back to things like consistently making corelokt bullets available to reloaders, keeping 7-1/2 primers on the shelf, and supporting the RUM cartridges with multiple factory loads (including the under appreciated 338 RUM). There’s enough other companies making AR15s. It seems like a distraction for Remington. Demand not that events should happen as you wish; but wish them to happen as they do happen, and you will go on well. -Epictetus | |||
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| Gracie Allen is my personal savior! |
A modern single shot with classic lines would be a good distraction - take 'em back to basics. | |||
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| semi-reformed sailor |
I’d like a rolling block please and thank you "Violence, naked force, has settled more issues in history than has any other factor.” Robert A. Heinlein “You may beat me, but you will never win.” sigmonkey-2020 “A single round of buckshot to the torso almost always results in an immediate change of behavior.” Chris Baker | |||
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| PopeDaddy |
Agreed. It’d be cool, sure, but it’d also make zero money for them, relatively speaking, on a mass scale. That’s a niche rifle in today’s market. 0:01 | |||
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| Member |
Cerberus has not owned Remington Outdoors since 2018. After the 2018 bankruptcy, the creditors took over ownership of Remington. The primary owners today are JP Morgan Chase and Franklin Templeton.
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| Gracie Allen is my personal savior! |
Perhaps, but how much could tooling up cost? Just don't make it a break-open; those things quickly become a PITA at the bench and prone. | |||
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Member |
Ya'Ah'Teh', make my day white eyes. ;-) | |||
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| Member |
very well stated you summed up two semesters of MBA education in one paragraph have read this story time and again in the WSJ ----------------------------------------- Proverbs 27:17 - As iron sharpens iron, so one man sharpens another. | |||
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Prepared for the Worst, Providing the Best |
I could care less about Reminton...they don't make anything I want anymore. Even the last couple of 870s I've seen have been junk...including a brand new Marine Magnum that couldn't fire a shot without the empty jamming in the chamber. My big concern is Marlin...seeing as they are owned by Freedom Group, what does this mean for them? | |||
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