The news and events surrounding troubled guitar and consumer electronics company Gibson Brands, Inc. seem to be moving at a rapid pace with almost daily revelations as the company struggles to survive ahead of a massive debt due-date just a few short months away. We learned over the last few days that Gibson has sold their recently shuttered Cakewalk Inc. division and laid off staff in their famous Custom Shop operation.
Management
CEO Says Gibson Will Dump Brands
Financials Show Sales & Profits Continue to Slide
Gibson Brands CEO Henry Juszkiewicz continues to profess confidence that the company will be able to successfully refinance their over $500 million debt before a mid-year maturation comes due. Telling the Nashville Post that the company is going through a little “spring cleaning,” Juszkiewicz says the company already dropped their Cakewalk music software group, and other brands in their portfolio are next to go. But a financial report to bondholders shows continued deterioration of both sales and profits, suggesting that simply pruning a few brands from the portfolio may not be enough to attract new investors or lenders.
See more on the dire situation at Gibson Brands… [Read more…] about CEO Says Gibson Will Dump Brands
Thiel is Toast, Specialty Audio Takes Another Hit
After a tumultuous five-year period, which began in 2012 when Thiel was sold to Tennessee private investor David B. Griffin, we can now confirm that Thiel Audio has been closed for good. Failing some kind of 11th hour rescue, another great American audio brand will be relegated to the dustbin of history.
See what we know of the closing of Thiel Audio… [Read more…] about Thiel is Toast, Specialty Audio Takes Another Hit
Strata-SERIES: RMR – Series Wrap-Up
One month ago, on December 6th, Strata-gee launched a series of articles on recurring monthly revenue (RMR) programs based on research conducted for a cover story in the December issue of Residential Systems Magazine. That Series, called Strata-SERIES: RMR, ran the entire month of December and into January with a total of five posts of content, plus an additional Series introduction and this Series wrap-up.
What did we learn about RMR? Much! Read on… [Read more…] about Strata-SERIES: RMR – Series Wrap-Up
Strata-SERIES: RMR – Smart Help for a Quick Start in RMR
[NOTE: This post is part of a series of articles on recurring monthly revenue programs we call Strata-SERIES: RMR. It will likely make more sense to you if you start by reading our Series Introduction here… and then our Topic Introduction and First Installment here…]
Because he had worked with an alarm company for the last twenty years, Matt Walin of Costa Mesa, CA-based Brilliant AV was very familiar with the concept of RMR programs as it related to central station security system monitoring. But as it specifically relates to residential AV and home automation solutions, it was about two years ago when they began exploring the process of offering their clients some form of a maintenance agreement covering their system installations.
Residential AV RMR, it turned out, was a horse of an entirely different color… [Read more…] about Strata-SERIES: RMR – Smart Help for a Quick Start in RMR
Strata-SERIES: RMR – Reducing Truck Rolls by 82%
[NOTE: This post is part of a series of articles on recurring monthly revenue programs we call Strata-SERIES: RMR Programs. It will likely make more sense to you if you start by reading our Series Introduction here… and then our Topic Introduction and First Installment here…]
In our last installment, we learned how Ben Lentz and the team at Cyber Technology Group launched an RMR program designed to help their clients understand that sophisticated technology systems require regular maintenance – just like their cars, their pools, and their landscaping. By getting clients on their Client Care Program, which includes regular “wellness visits,” Cyber Tech saw their upgrade sales increase during these visits.
Like Cyber Tech, Ron Wanless of Technology Design Associates (locations in Washington and Oregon) had a slightly different motive for pursuing a recurring monthly revenue program. Little did he know that it was a pursuit that would result in fundamental changes in how they service their clients and run their business.
See how Technology Design Assocs. RMR program cut service costs… [Read more…] about Strata-SERIES: RMR – Reducing Truck Rolls by 82%
Gibson Cuts Debt Deal to Delay Payment Date
Gibson Brands has reached a deal with GSO Capital Partners, one of its existing lenders, in order to push back a loan payment by approximately two weeks to December 15th. The reason for the move was to try and time the payment such that it arrived later in the holiday season for better timing relative to their anticipated cash flow.
See more on this new, if temporary, debt deal… [Read more…] about Gibson Cuts Debt Deal to Delay Payment Date
Gibson Successfully Sells Memphis Factory
From our boy-that-was-fast department, Gibson Brands announced it has booked a deal to sell its Memphis factory/showroom. This facility, which is located in the heart of Memphis’ downtown right near the main entertainment district, had just been put on the market as we told you in our post of November 2nd.
See more on this latest Gibson Brands news… [Read more…] about Gibson Successfully Sells Memphis Factory
More Thiel Turmoil – Is It Closed? Is It Open?
Significant Staff Terminations Drop Headcount
We are hearing from multiple sources both public and private that Thiel Audio has ceased operations, effective November 30, 2017. If true, the news would be a sad punctuation to the end of the story of a once proud high-end audio brand that since 2012 has endured multiple CEO’s and their changing business plans. Current CEO Elyse McKenna is, by our count, the fifth CEO at Thiel since the end of 2012 – a year which started with co-founder Kathy Gornik as the CEO who then sold the company to David B. Griffin, a wealthy farmer and landowner according to our sources.
But, apparently, the answer to the question posed in our headline is that it depends on who you ask. CEO Elyse McKenna, in a telephone interview this afternoon, denied that Thiel is closed and tells us the company remains open for business.
See more on this confusing news on Thiel… [Read more…] about More Thiel Turmoil – Is It Closed? Is It Open?
Strata-SERIES: RMR Programs – How We Do RMR in the Big City
We continue on with our new Strata-SERIES:RMR Programs series of articles. Smack dab in the middle of Manhattan you’ll find Union Square and in Union Square you’ll find Cloud9 Smart, a leading New York City integrator in both commercial and residential installations.
[Note: this article is part of a series and will make more sense if you read Installment 1 first. You can find it at this link…]
