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Fountain Files Chapter 11 Bankruptcy

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Old 08-27-2009, 12:33 PM
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I just have an issue with Reggies marketing and some of the Kool-aid club...
Why in the world does anyone have a problem with Reggie's marketing. Do you really think if he'd have saved the marketing money that he wouldn't be in the pickle he's in?? C'mon, really!!

I think his marketing is just that, marketing. It was effective and productive. And, how long did OL chase him along in that game....... Reggie egged them on they bit, hook, line, and sinker.

Reggie is like the Mohamad Ali of boat builders. He's in your face and not afraid to challenge anyone. His attitude is "bring your best chit to this game 'cause I'm bringing mine".

Reggie is cool and that's that!
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Old 08-27-2009, 01:34 PM
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Would'nt think thats to far fetched...

Not far fetched at all! Something is goin' on. Guess we will wait and see...
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Old 08-27-2009, 02:08 PM
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My post wasn't a knock on Reggie, it was a knock on that business model. It's really a mute point as this is history now.

I'm not privy to any finanical data, but I suspect Skater, Outerlimits, and even Cig have lower debt to equity ratios. They also have lower volume so there is the potential for less customer service (per boat).

The Fountain assets will live on. The trademark is worth some cash. The molds are worth some cash (think of all the R&D in those).

Somebody could get a great deal on these assets.
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Old 08-27-2009, 06:00 PM
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Reg say's he is going to turn the factory into a retail outlet selling direct....humm, don't think to many dealers will accept that unless the dealers bought into the company change. Interesting to see how this plays out. I would expect the change does not come as a surprise.
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Old 08-27-2009, 07:42 PM
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My post wasn't a knock on Reggie, it was a knock on that business model. It's really a mute point as this is history now.....
This I would agree with. After reading this new article on Fountain and the fact that Reggie HIMSELF admits he made financial mistakes....says it all!

"I didn't do what my momma and daddy told me and put a lot away for a rainy day," Fountain said. "Momma and Daddy were right."

Read it yourself.

http://www.newsobserver.com/business/story/1662322.html

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Old 08-27-2009, 08:27 PM
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"I didn't do what my momma and daddy told me and put a lot away for a rainy day," Fountain said. "Momma and Daddy were right." Dave
Well, after reading that article, It's apparent O'l Reg spent a little more on marketing than ThirdBird thought he did.

He's still the Ali of boat building though!!
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Old 08-27-2009, 08:29 PM
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This I would agree with. After reading this new article on Fountain and the fact that Reggie HIMSELF admits he made financial mistakes....says it all!

"I didn't do what my momma and daddy told me and put a lot away for a rainy day," Fountain said. "Momma and Daddy were right."

Read it yourself.

http://www.newsobserver.com/business/story/1662322.html

Dave
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"It has been a fast decline for the manufacturer of sport and fishing boats, which in 2006 had a record year, with nearly $80 million in sales and a bulked-up staff of more than 450 people.
As recently as last summer, the company was planning to add 250 jobs, an expansion plan that garnered it a promise of a state grant of as much as $12 million over five years.
Fountain Powerboats occupies a 65-acre campus in Beaufort County along the Pamlico River. By next week, there will be a dozen workers there as Fountain works with his bank and the court to work out a reorganization plan.
Over the company's history, Fountain estimates that he has sold a billion dollars worth of boats. Most of the profits, he said, were plugged into sponsorships of fishing teams, racing teams, promotions and research and development.
"I probably spent $100 million," he said. "If I'd have saved $50 million of it, I wouldn't have known this [recession] was happening."
For its most recent quarter, the company in February reported a $1 million loss and said sales dropped by more than 60 percent when compared with the same quarter the previous year. The sales decline has continued.
"People aren't buying homes, and you need a home," he said. "You don't need a boat."
Fountain said he owes his bank between $19 million and $20 million. In June, the company began working with Raleigh investment-banking firm Jacobs Capital to find a new investor. Fountain said nine parties were interested.
Fountain owns 52 percent of the company, and even though becoming a minority shareholder is not what he wanted, he said he would be grateful for the help.
"It would be nice if I owned it all myself," he said. "But I'm going to have to take what comes, and it looks like I'm going to have a partner. I want to see it keep on. It's got my name on it. I was the mother of the company, and you know how moms are about their kids."
As part of the restructuring plan, Fountain said he plans to trim overhead and focus on parts and service, which previously brought in only a little income.
"I think we can do $500,000 to $700,000 a month over the next few months," he said."

The new model sounds more like a boutique business, which may make dealers simply a go between. Something tells me prices will rise quite a bit as volume stays low.
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Old 08-27-2009, 08:32 PM
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Why in the world does anyone have a problem with Reggie's marketing. Do you really think if he'd have saved the marketing money that he wouldn't be in the pickle he's in?? C'mon, really!!

I think his marketing is just that, marketing. It was effective and productive. And, how long did OL chase him along in that game....... Reggie egged them on they bit, hook, line, and sinker.

Reggie is like the Mohamad Ali of boat builders. He's in your face and not afraid to challenge anyone. His attitude is "bring your best chit to this game 'cause I'm bringing mine".

Reggie is cool and that's that!
Do you have any idea what it cost just to do his last publicity stunt? (jammin on the james)

Well the man himself even agrees that he spent to much on marketing!

"Over the company's history, Fountain estimates that he has sold a billion dollars worth of boats. Most of the profits, he said, were plugged into sponsorships of fishing teams, racing teams, promotions and research and development.

"I probably spent $100 million," he said. "If I'd have saved $50 million of it, I wouldn't have known this [recession] was happening."
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Old 08-27-2009, 08:33 PM
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Well, after reading that article, It's apparent O'l Reg spent a little more on marketing than ThirdBird thought he did.

He's still the Ali of boat building though!!
Sorry! You already read it!
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Old 08-28-2009, 12:30 AM
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Now that Fountain is gone, this may be the opening that John Haggin needs to put pressure on SBI's John Carbonell to unify. Geico is still a big player...
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