Everything Attachments - Bankrupt?

[TheOldHokie]

It would seem that there is no..... "current payroll".
I strongly suspect that Ted Corriher had little or no rent, and from the amount/price of product sold, he likely had no problem making a profit.
It seems quite obvious that the financial collapse of the new building project is what did him in.
I strongly suspect that he will rise from the ashes to build attachments again.
It is what he loves to do, and what he knows best!

Nothing in this story is clear.

My First Aid book says when you start bleeding lots of red you need to find a tourniquet and fast.

Dan

 

[GreensvilleJay]

you also directly tell someone to go get help and enlist others to assist you as well.
Used to be a Red Cross First Aid Instructor 5 decades ago..dang that's 1/2 a century....sigh, i feel old now, thanks

 

[bykerboy]

It would seem that there is no..... "current payroll".
I strongly suspect that Ted Corriher had little or no rent, and from the amount/price of product sold, he likely had no problem making a profit.
It seems quite obvious that the financial collapse of the new building project is what did him in.
I strongly suspect that he will rise from the ashes to build attachments again.
It is what he loves to do, and what he knows best!

Unless he makes me whole and I get what I paid for he (TC) will never see another dime of my money.

 

[Jim’sMX]

Were Ted’s designs and metals used trademarked? There’s attachment manufacturers everywhere in NC. Denton is the attachment capital. I had no idea there were so many until I started looking around for a grapple. EA was the only one I was aware of in NC making light grapples. I’m wondering if someone else can copy the wicked grapples? Was it also the “free shipping” that made them popular? Obviously folks didn’t mind paying extra to have ea implements.

 

[Chad D.]

Feel bad for the fella, but sure am glad I declined to prepay for equipment with a 6-8 month lead time a while ago. I told them I was fine with a deposit or full payment when my piece was next in line, but to require full payment for product that hasn’t cost him a dime yet. That made the little hairs on my neck stand up.

In my opinion, we all should have seen that as a red flag. I don’t mean to sound rude, but it’s a little naive to give 100% payment with long lead times. It takes all leverage away from the consumer and places no real incentive on the supplier to do his part.

If you ordered a new $100K Ford, would you pay in full before you had the key(fob)? Would you send $500 to Costco for items you want to go pick up in 6 months?

 

[fried1765]

Unless he makes me whole and I get what I paid for he (TC) will never see another dime of my money.

I totally agree !!!!

 

[fried1765]

Nothing in this story is clear.

My First Aid book says when you start bleeding lots of red you need to find a tourniquet and fast.

Dan

I strongly suspect that his attorneys are advising just that!

 

[fried1765]

Feel bad for the fella, but sure am glad I declined to prepay for equipment with a 6-8 month lead time a while ago. I told them I was fine with a deposit or full payment when my piece was next in line, but to require full payment for product that hasn’t cost him a dime yet. That made the little hairs on my neck stand up.

In my opinion, we all should have seen that as a red flag. I don’t mean to sound rude, but it’s a little naive to give 100% payment with long lead times. It takes all leverage away from the consumer and places no real incentive on the supplier to do his part.

If you ordered a new $100K Ford, would you pay in full before you had the key(fob)? Would you send $500 to Costco for items you want to go pick up in 6 months?

Nobody forced any of us to pay so far in advance!
We ALL understood that we either made full payment up front, or there was no order.
I did it ....twice!
It seemed to be working........until now,.... it didn't!
Hopefully.......credit cards will pick up losses, though orders that are more than 90 days old may be a problem.

 

[mcmxi]

Unless he makes me whole and I get what I paid for he (TC) will never see another dime of my money.

I sincerely hope that this works out for you and that you either receive a full refund or what you ordered. Please let us know if the matter is resolved for you.

I also hope that everyone who has a stake in this i.e. EA, their employees, their customers, future customers, the town of Conover, and the industry as a whole come out ok. I've been a fan of EA for a few years now and don't want to see them go away. They've been nothing but good to me and I have zero complaints re the money I spent with them.

 

[mcmxi]

It seemed to be working........until now,.... it didn't!

How does EA's pay in advance business model have anything to do with the current situation? The whole issue seems to be the fact that EA hasn't been able to move into a new and very expensive building to catch up on all the orders, and we're talking about a $6.5M building with a significant tax burden.

From the point of view of customers it's entirely about the pay in advance model, I get that, but there's no connection between that practice and the dispute with the contractor.

 

[fried1765]

How does EA's pay in advance business model have anything to do with the current situation? The whole issue seems to be the fact that EA hasn't been able to move into a new and very expensive building to catch up on all the orders, and we're talking about a $6.5M building with a significant tax burden.

From the point of view of customers it's entirely about the pay in advance model, I get that, but there's no connection between that practice and the dispute with the contractor.

The issue is really simple....
When you pay in full, in advance, you takes yo chances, that the manufacturer will actually deliver the product.
As a customer, you know nothing about manufacturer liabilities, but until delivery, you ARE exposed to the consequences of those liabilities!

 

[TheOldHokie]

How does EA's pay in advance business model have anything to do with the current situation? The whole issue seems to be the fact that EA hasn't been able to move into a new and very expensive building to catch up on all the orders, and we're talking about a $6.5M building with a significant tax burden.

From the point of view of customers it's entirely about the pay in advance model, I get that, but there's no connection between that practice and the dispute with the contractor.

EA alleges inability to get an occupancy permit. The builder alleges $2M in unpaid debt. Somebody is lying.

Dan

 

[North Idaho Wolfman]

EA alleges inability to get an occupancy permit. The builder alleges $2M in unpaid debt. Somebody is lying.

Dan

Did you read the interview where the contractor admitted that the sub contractor for heating falsified the requirement for the heating system?
The General contractor is responsible and liable for anything the sub contractors do.

I've also read many other statements from both sides.
Lots of mud slinging going on!

 

[GreensvilleJay]

re: How does EA's pay in advance business model have anything to do with the current situation?

One possible way, greed.... you've got a LOT of cash in the bank from 'paid in full, up front sales', looks GREAT to the money lenders, they spot you even more money so you can expand( to build the widgets..the prepaid widgets.) So the stress of expansion gets to you, you take a well deserved holiday, on the company( has LOTS of money...),buy a new car, few dinners out( business expense, right ?) Some things don't fall into place, so more stress, toss money to 'fix' the situation, maybe borrow yet even more money to expand the expansion as sales are booming and dangit, people prepay for their widgits, lotta MORE cash comes in.....sooner or later the 'bubble has to burst', the 'house of cards' crashes.

I've seen this scenario play out 3 times, they were great customers of mine, always paid on time, every month for years.1st one literally packed up the good stuff and moved on a holiday weekend. 2nd moved few miles down the road, left 232 unsecured creditors high and dry(millions all told), 3rd actually just shut down, never did reopen.1 and 2 literally let the original business go bankrupt, and 'restarted' under new names. These were Canadian corporations (LLC in the USA ? ), back then (3 decades ), small multimillion buck businesses.

There was a whole TV series about business guys that were crooks. I don't think most really start out to be crooks, but when the cash start pouring in, greed and ego take over, living large and feeling nobody can stop them.

Kinda curious about the credit card refund. Say everyone used the same bank, could be millions. THAT would be a hard pill for the bank to swallow as they might not be a 'secured' creditor. Wonder if there is a time limit (xxx days for goods to be delivered ?? )

 

[DustyRusty]

If EA couldn't find experienced welders to have a second shift, then where were they going to find them when the new building was ready for occupancy? I have to believe that the parts were cut on an automated machine using a computer program, so there was no wasted labor there. All that I can think of is that they were planning on using robots to do the welding when they moved into the new building.

 

[TheOldHokie]

Did you read the interview where the contractor admitted that the sub contractor for heating falsified the requirement for the heating system?
The General contractor is responsible and liable for anything the sub contractors do.

I've also read many other statements from both sides.
Lots of mud slinging going on!

All I read was the initial court filings. Whose at fault. who agreed to what, and who owes who what will be determined by a court or a negotiated settlement.

Meanwhile customers that ponied up monies are angry, want a years worth of their monies back, cash inflows dry up, and trust is destroyed. Not anyway to run a business.

Dan

 

[Chad D.]

So, Regarding the credit card companies…. Not trying to argue that they may be the best bet for personal reconciliation; I believe that’s part of what their ~3% seller’s fee covers.

But, will they have a right to sue or lien the company if it is determined to have been fraud?

Please know that I am not trying to poke any bears here. I hope every person that is potentially hosed in this deal comes out whole, and I hope everyone from EA makes ends meet as well.

I just like to look at all the angles and do my best to understand how it might play out.

 

[ken erickson]

Like everyone here I hope that not a single person loses their money and EA and it’s employees and creditors emerge unscathed from this. .

EA may well have a plan in place to honor every one of its obligations and this whole crisis may be nothing more than an internet rumor.

The thing I do not understand is why EA's lawyers do not craft a public statement with a update to quell the rumors and bring light to the issue. EA's owners and management must know that this thing is blowing up the tractor forums, and by their silence it makes it seem as if they are running and hiding.

If it is true they are closing up shop etc, man up and face this thing head on, if not true, give an honest update of the situation and in the words of Aaron Rodgers, R E L A X. , ( I know , its a Wisconsin , Green Bay football thing, lol ).

 

[Runs With Scissors]

I don't have dog in this fight, and I remember paying Homestead about 10 weeks in advance for my box blade, so I am guilty of "enabling" the "pre-pay" sinners.

The only advice I have, is for people that used a credit card; If you are approaching the 90 day mark you best dispute that charge ASAP.

Last year I tried to dispute a charge at 95 days and the CC company told me exactly where to stick my dispute.

They claimed that there is some actual "Law" that prevents them from opening disputes past the 90 day mark.

I have no idea if that's true or not, and since it was only 50 bucks I just ate it and moved on.

 

[GreensvilleJay]

re: CC refund
curious, so asked Mr. Google...

the correct term appears to be called 'chargeback' and most CC companies have a 120 day limit !!!

Everyone should check with their CC company to see what specific time limit they have PDQ !!!