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Major firearms and sporting goods distributor closed the doors

Yes Sir, that's it! It's pretty amazing how they strung that bank along. I would have thought the bank would have seen some signs before this. When you read it, notice how quickly the cash dissapeared from the bank! It was a real shame, nice company with a bunch of good employees. On a good note, almost all of the employees that didn't retire went to work for many different companies in the same business. My wife is still selling guns and supplies!
 
Believe me fellows, my wife and I hated to see Ellett close. She was one of their sales girls and lost her job to greed! You can go to the clerk of courts web site in Lexington County South Carolina and download a copy of the law suit filed by the banks. It is quite an interesting read. The owners and CEO should really face criminal charges.
jb, Sorry to hear,best to your wife. I was a customer of Ellett Bros. back in the 80`s. Ran a small gun business and relied on EB`s to keep me stocked up. I had a good relationship with the company.Even though I was a part timer. Donna was my contact person. That`s all I remember. Too many planning sessions with Jack Daniels in those days. He was my adviser. But good luck to your wife,I hope she can find work she will enjoy. Jeff
 
That's the division they kept. Lear jet, and the other 48 divisions were acquired and sold off in 1987 thru 8 as I recall. I went over to Lockheed for a while and then off to do my own thing after the Russians quit the Cold War and Loc-kneed laid off tens of thousands.
Thanks for the clarification.

As the link below paints a different picture than yours. It also is a good representation of how a company like Lear Siegler is poorly managed well before an LBO takes place.

https://en.m.wikipedia.org/wiki/Lear_Siegler

This is a firearms forum and I come here to learn more about those related topics. In all the years I’ve been here I can’t say I’ve ever learned anything valid about business or economic related topics or events. Your posting on this particular subject is an example of that.
 
You are correct, if only Wikipedia existed back then, LOL. Lear Siegler was a merger of companies by John Brooks (Siegler) and William (Bill) Lear, who later divested himself to pursue building the business jet company. Perhaps it was this connection that was on display in the halls of my workplace with pictures of Bill and the Learjet. My experience is just that, my experience working at a division of LSI.

Did you learn something about business and economic related topics from your research?

Me too.
 
Yes Sir, that's it! It's pretty amazing how they strung that bank along. I would have thought the bank would have seen some signs before this. When you read it, notice how quickly the cash dissapeared from the bank! It was a real shame, nice company with a bunch of good employees. On a good note, almost all of the employees that didn't retire went to work for many different companies in the same business. My wife is still selling guns and supplies!
Yes Sir, that's it! It's pretty amazing how they strung that bank along. I would have thought the bank would have seen some signs before this. When you read it, notice how quickly the cash dissapeared from the bank! It was a real shame, nice company with a bunch of good employees. On a good note, almost all of the employees that didn't retire went to work for many different companies in the same business. My wife is still selling guns and supplies!
I would imagine Prospect Capital knew exactly what was going on and what the money was being used for.

That lawsuit reads like the usual desperate Hail Mary sue everyone because I was stupid kind. Notice there is not one citation of a loan contract provision or loan covenant breach relating to how the loan proceeds were used. Another red flag, why did they wait 7 years to sue after the loan proceeds were dispersed out of the borrowing entity?

Go borrow money for a car or home and use the money to buy something else, banks don’t let that happen!
 
You are correct, if only Wikipedia existed back then, LOL. Lear Siegler was a merger of companies by John Brooks (Siegler) and William (Bill) Lear, who later divested himself to pursue building the business jet company. Perhaps it was this connection that was on display in the halls of my workplace with pictures of Bill and the Learjet. My experience is just that, my experience working at a division of LSI.

Did you learn something about business and economic related topics from your research?

Me too.
Not really.

Here, learn some more.

https://www.wallstreetmojo.com/leverage-buyout-lbo-analysis/#LBO
 
I had an account with jerrys for over 20 years. So sad but something changed about 8 years ago. Same with Kinseys archery, when you could be a home based business and then they changed the rules where you had to have a retail outlet store front only. The mom pop business is what made kinseys millions but I guess that wasn't good enough.
 
Only happens with publicly traded companies, who are always for sale, hence, publicly traded

No such thing as a hostile takeover of a privately owned entity

That's....not...entirely true. A privately owned company can be forced to sell using a variety of tactics. Threaten to put them out of business through cut throat competition, for one, I'm thinking Amazon and Walmart are two of the biggest offenders. But at one time where I live, all the local fencing companies were bought out to corner the market on the home fencing business. Hard to say no to an offer when the only foreseeable option is file for bankruptcy a year down the line.
 
Had an account with them for about 15 years, the last few years I went down the the dealer show in Columbia SC every Jan with a local shop owner. Was nice to get out of the cold for a few days in Jan.
 
As I understand it, Ellett Brothers gambled on the election and lost. They signed a contract to purchase a large quantity of firearms assuming that Hilary would win the Presidential race and that there would be a run on purchasing. She didn't win (thank goodness) and they got stuck with a very large inventory that had a negative impact on their cash flow. Essentially, they rolled the dice and lost.
 
As I understand it, Ellett Brothers gambled on the election and lost. They signed a contract to purchase a large quantity of firearms assuming that Hilary would win the Presidential race and that there would be a run on purchasing. She didn't win (thank goodness) and they got stuck with a very large inventory that had a negative impact on their cash flow. Essentially, they rolled the dice and lost.

That gamble has been made by many companies across the firearm industry. It’s the primary reason for so may $400 ARs. Too much cash tied up in inventory and can’t pay the bill so they have to move em.
 
That's....not...entirely true. A privately owned company can be forced to sell using a variety of tactics. Threaten to put them out of business through cut throat competition, for one, I'm thinking Amazon and Walmart are two of the biggest offenders. But at one time where I live, all the local fencing companies were bought out to corner the market on the home fencing business. Hard to say no to an offer when the only foreseeable option is file for bankruptcy a year down the line.

These are market forces, not a hostile takeovers.

Walmart started as small department store called Walton’s in Bentonville Arkansas with just a handful of employees.

Walton%27s_Five_and_Dime_store%2C_Bentonville%2C_Arkansas.jpg


Today there are 2.3 million people working for Walmart who are glad Sam Walton had a vision.

Market forces, much like the forces of nature, can be cruel. Running a successful business, large or small, ain’t easy.

Business often don’t make it for a number of reasons but I reserve making value judgements on these factors unless they are the result of poor leadership, negligence or malfeasance.
 
These are market forces, not a hostile takeovers.

Walmart started as small department store called Walton’s in Bentonville Arkansas with just a handful of employees.

Walton%27s_Five_and_Dime_store%2C_Bentonville%2C_Arkansas.jpg


Today there are 2.3 million people working for Walmart who are glad Sam Walton had a vision.

Market forces, much like the forces of nature, can be cruel. Running a successful business, large or small, ain’t easy.

Business often don’t make it for a number of reasons but I reserve making value judgements on these factors unless they are the result of poor leadership, negligence or malfeasance.

I lived in the Bentonville, AR area for many years and have friends in the Wal Mart G.O. (general office). Stories you hear about billionaire Sam driving around in an old pickup truck are absolutely true. Spotted him once. It is also true that Sam's death brought about many changes to the company culture. People who knew him tell me that Sam was an extremely shrewd businessman but would not appreciate the practices of the current Wal Mart.
 
People who knew him tell me that Sam was an extremely shrewd businessman but would not appreciate the practices of the current Wal Mart.

My mother, grandfather and grandmother are from Bentonville. Lived one block from the first Walmart (not the Waltons, but the first Walmart, which wasn’t much bigger). My grandmother knew Sam personally too so I heard all the stories as well. They are all true.

What practices do you suppose he wouldn’t approve of?
 
Been doing business with these people for 18 years, 8 large warehouses across the country.
Been watching their inventory go down for the last 6 months.View attachment 1121723


I had a German Short Haired Pointer that looked "exactly" like the dog on the cover. His name was Meatball (because of the liver spot on his side) He died a couple years ago. Had him for 13 years.............best years of my life.
 

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