And right there is where you got it wrong. When the govt forces you to make those loans, you arent doing it out of greed. You are doing it to stay in business. Its just too bad that those loans were packaged, resold, and connected to lots of good investments....but thats the way it works. Get the govt out of social engineering and wellfare. And yes, lending is hard right now.

Pay close attention to what Shogren has to say.....I suspect he is as close to this as anyone. He as much as said there is a new owner coming soon. His organization seems to be well heeled to continue spending cash in this economy.

Way to go Scott!

http://www.ibinews.com/ibinews/newsd...34ibinews.html

The court documents said Fountain's current operations would not be sufficient enough to support a traditional reorganization. Fountain's filings said "creditors would benefit from the sale of the Sale Assets to a third party, who would then be in a position to infuse working capital, make the necessary capital expenditures and maintain operations for existing and prospective customers, vendors and employees. The Debtors also believe that a forced liquidation of the Sale Assets by a Chapter 7 trustee or by Regions Bank exercising its state law remedies would result in no payment to unsecured creditors."

Apears they are going to attempt to substantially reduce production. My heart goes out to the families involved. I like fountains, I hope they can substantially improve build quality as a result.

Fountain will attempt to sell its assets, including the facilities and tooling in North Carolina, as well as brand names and unsold inventory for the Fountain and Baja brands. It expects the assets to sell for between US$6m and US$8m.

The company intends to continue operations, according to the court documents. Reggie Fountain told local news sources that only about 10 to 12 workers will remain on the site in the coming weeks.

If Fountain is selling the facilities and tooling, how do they intend to continue operations?

Many companies have held on with skeleton crews awaiting something, anything. Donzi did it, so did Crownline and others. My guess is for that kinda money, Checkmate will be their heir apparent.

I would have thought Brunswick, but man, they have more problems than Fountain did. Kinda makes people wonder why CEO's sign off on what was pretty easy to dicern garbage.

I agree with your statement. A lot of Politicians forced the practice of lending to some one who could not afford the loan. Two wrongs don't make a right..


Its all pretty sad

As a large Dealer Like Shogren I agree with him they will pull out if we were worried we would be on the next flight to sit down with Reggie in person.

Legend Marine Group

Sad

Tblrklaknemo,

The government didn't "force" anyone to make or take those home loans. That's incorrect. Frank and Dodd, Democrats if it makes you feel better, were the geniuses behind the sub-prime loan market. But no one, lender or borrower, was forced into anything. A lot of lenders cashed in big on that junk. A lot of of homeowners were able to own (and now lose) property on that junk. In the end it was ... junk. But it was not mandated.

To the issue of Fountain (I also posted this on another board):

The notion that Baja struggled because Reggie tried to "Fountainize" the Baja line is rubbish. It cannot be backed by fact. Here's what can:

Baja dealers had huge new-boat inventory, moments before a huge recession. And the pre-owned stuff? Off the hook.

I am not pointing fingers in any way at anyone at Baja. But even in a robust economy, it would have been tough for Baja dealers to clear all their inventory in 2007 and 2008.

Because Reggie Fountain is something of a public figure, it's good sport to make fun of his personal style and all that. Fair enough ... you court the public, you take what you get from it. But regardless of what you think of Reggie or his product (Was it innovative or just good marketing?) the man has done as much, no, screw it, much more, than anyone, even Don Aronow to promote the high-performance boat industry.

Only an idiot would count him out.

I realize that all you idiots who voted for Bush even though he is clearly the worst President in US history have somehow forgotten that this entire economic meltdown happened on his idiotic watch.

But come on, do you have to keep proving to everyone else how retarded you are? Just keep your past mistakes to yourselves, move on. Mistakes happen. You made a REALLY BIG one that all these boat companies are paying for, but you made it. Move on. Sure, the lives and fortunes of many people were destroyed by his idiotic policies (spend more, tax less). But in the long run, we will all get over that disaster. Might take awhile, and a lot more people losing everything they ever worked for, but we'll get over it.

But really, please stop embarassing yourselves. Bush did this. Obama might barely be able to get us out of this mess, he's doing the right stuff so far. But Bush broke this economy. Don't be an ass.