Everything Attachments - Bankrupt?

[fried1765]

I was an employee there for several years, and I want to explain what's really happened to EA in hopes or ending the widespread speculation on this forum. The owner was not paying bills, including carrier/shipping debt (175k to FedEx alone several months ago), third party vendors, taxes, etc. In some cases a customer would request a refund because the wait was longer than initially projected, but our manager would tell us "we really don't have enough in the account for a refund currently". While EA manufactures quality attachments, Ted/Nate were absolutely using money from new orders to cover material costs for older orders. A previous post mentioned the "rob Peter to pay Paul" business strategy, and that is absolutely what was taking place at EA. In addition, some of that money was wasted on non-work related projects like a new Tesla and dock parties at the glass house. We had multiple welders spend close to a year at his glass house on the lake, doing renovations and updates instead. We suggested advising a more accurate lead time (5-6 months, instead of 3-4 months which is what we were telling folks), and Ted's response was "they won't buy if the lead time is too long!". Ted's excessive and wasteful spending is the biggest contributor to EA's downfall. If you have an order in, get your money back if you still can. EA was little more than a glorified Ponzi scheme at the end of its lifetime.

*this was also posted on Tractorbynet, on a now locked forum*

I recently came to suspect the REAL cause of the EA downfall, was that it probably was a current day "Ponzi scheme".
What a shame.....for the unfulfilled order buyers, and the employees.
Wonderfully designed, and built products, by an individual unable/unwilling to properly manage his debts/business.
Very sad, for everyone involved!

It will be very difficult (and it probably should be) for Ted to resurrect any sort of follow on attachment business.

 

[D2Cat]

I think folks can look up the history of the owner and discover past dealing that are less than straight forward. Misdealing in the past, an apparent history of not paying bills and law suits.

 

[UpNorthMI]

What a shame to read this thread, I purchased quite a few attachments from EA over the last 6 or 7 years, it is all great equipment.

from what I’ve read here it looks as if EA may have become too popular and too busy, business ownership may have taken their eye off the ball or got caught up in growth plans that were not well thought out. It’s been a very difficult couple of years, construction costs have escalated rapidly and are out of control, the cost of financing or cost of money has increased significantly too.

sometimes it’s easy to think of those orders in hand as profit, but the costs need to come in as well, causing cash to go out. Employment costs have risen and good fabrication guys have become a lot harder to find and retain, material and component cost have all risen, transport cost has been going through the roof.

it does not take too much to make a few bad decisions, be a little unlucky or to just ignore things to find out that you are in a hole you cannot get out of. When your sales are $32M an investment commitment of $20M and adding 150 jobs all seem to be a poor plan.

Running a successful business over a long period of time is not for the weak, especially with all of the current challenges. Managers are often not as capable as Owners may have been.

Look at the price increase in cars and trucks over the last 2 years, 25-30%, these increases are coming to US produced fabricated products like attachments, maybe EA held their prices too low! Unfortunately the price of quality US made products have to increase or we will continue to end up growing the China or Eastern Europe foot hold in the US.

Hpefully, the current issue is just a case of a bank stopping the financing and that a new plan is being put together for the business to go forward, the longer nothing is said, the worse everyone’ s thoughts become. Fingers crossed for anyone owed money and or equipment

 

[Runs With Scissors]

There are people like myself that came "on the tractor scene" right smack dab during the Draconian Covid lockdowns, and I thought that the EA extended wait times were due to "raw materials" hold ups/supplier shortages.

Much like the 10's of thousands of cars and trucks I saw sitting in parking lots waiting for "micro-chips" or the stupid long wait times for tractors, or backhoes, or basically anything else at that time (during Covid Lockdown.)

Stupid long wait times became/had become "normal".

I suppose I never gave EA's "pay up front" business model a second thought until "It happened".

As a matter of fact, before "It happened", EA seemed to be loved by all on this forum.

I mean literally every time a poster would ask "What ____________ should I get? EA was at the top of the recommendation list.

Anyhow, I can understand how people "could not see the forest, through the trees".

I sure couldn't.

 

[Bmyers]

I'm a proud owner of an EA Wicked Grapple. I had to wait for it, but it has done everything that they advertised and more.

With this being said, would I recommend anyone jumping in line right now? Nope, not till there is official clarity.

I'm reminded of Sears. The once great giant Sears was the mark that every other store attempted to obtain. Craftsman tools were the best and the warranty was great. Yet, through management decisions, the once great Sears and the Craftsman line is just a ghost of what it formerly was.

Craftsman is trying to make a comeback, will EA come through this situation and try to make a comeback? Will they be the industry leader they once were if they do try to make comeback?

Sadly, poor management has ruined more than one company over the years.

 

[The Evil Twin]

I'm a proud owner of an EA Wicked Grapple. I had to wait for it, but it has done everything that they advertised and more.

With this being said, would I recommend anyone jumping in line right now? Nope, not till there is official clarity.

I'm reminded of Sears. The once great giant Sears was the mark that every other store attempted to obtain. Craftsman tools were the best and the warranty was great. Yet, through management decisions, the once great Sears and the Craftsman line is just a ghost of what it formerly was.

Craftsman is trying to make a comeback, will EA come through this situation and try to make a comeback? Will they be the industry leader they once were if they do try to make comeback?

Sadly, poor management has ruined more than one company over the years.

Smith Corona is another one. The ivy league educated board didn't believe personal computers would ever catch on.
I still have many of my dad's Craftsman tools that were made in the USA. However, I do not have his old typewriter.

 

[Geezer3d]

Although mismanagement seems the most likely reason for a company which makes quality products and has a good reputation among it's customers to fail, it really doesn't matter what caused it. The bottom line is that anyone who has sent them money should use whatever recourse is available to get that money refunded.

Since the products appear to be very good, I hope someone is able to take over and get the business back in operation.

 

[mcmxi]

What a shame to read this thread, I purchased quite a few attachments from EA over the last 6 or 7 years, it is all great equipment.

Much of the disappointment for me in this current situation is just that. A top tier US implement manufacturer who actually makes most of what they sell, and who isn't owned by some conglomerate, might be going away for good and that void will be filled by Chinese made junk. There are other good manufacturers out there such as Woods, IronCraft, Dirt Dog, Homestead etc., but their total lack of transparency leaves me wondering where these things are actually made.

Just yesterday I was looking into hydraulic pull disc harrows and noticed that Dirt Dog sells them such as the DHP8 model. If you Google DHP8 you'll find other companies including Bush Hog and Rhino Ag selling exactly the same model.

Pull Disc Harrow - Dirt Dog Manufacturing

www.dirtdogmfg.com

DHP Pull Disc Harrows - Bush Hog

bushhog.com

Pull-Type Compact Disc Harrows | RhinoAg

Rhino's Pull-Type Compact Disc Harrows features from 8 to 12 greaseable, triple-lip, sealed ball bearings ensure that maintenance is few and far between.

www.rhinoag.com

 

[D2Cat]

I find it entertaining when someone comes to a forum and expresses his thoughts on the situation and fellow members want proof he knows what he's expressing. Show us your pay stub. One offering information is just that. They are not in the suit, and this is not a deposition in the law office.

Must be hell to buy something on Amazon or any other online place. The reviews leave the reader to decide if they are given an item so they brag about it, if they bought it with their own money and actually like/dislike the item, or is the review worth their time.

We have to discern from our own experiences, and comments of others, to determine value in any relationship or transaction. So we accept all information and digest it to our understanding and hope it ends up to our liking.

 

[wp6529]

History is littered with examples of superior products that have fallen by the wayside due to poor management and marketing. Being the best means little, claiming to be the best and getting customers to believe you is what matters.

 

[GreensvilleJay]

Well the 'void' doesn't have to be filled with 'Chinese junk'. It only take an American with some good business ethics and a bank of coins to make and sell the products EA used to.
From a business aspect, EA got all the money up front that paid for raw materials,taxes,wages,heating, power,shipping, etc. AND a tidy profit. So someone else could do the same. Start small, say just 'grapples' (apparently they're a great seller ...) So, open a business called 'Great Grapples', proudly Made in America. Phones should be ringing off the hook PDQ to place orders.

 

[mcmxi]

I find it entertaining when someone comes to a forum and expresses his thoughts on the situation and fellow members want proof he knows what he's expressing. Show us your pay stub. One offering information is just that. They are not in the suit, and this is not a deposition in the law office.

I'm the only one that suggested a pay stub (redacted) because anyone can claim to have inside knowledge and post all manner of BS for their own agenda. What if this particular person was an employee but was fired and now has a grudge. What if this person never worked at EA at all. You and others seem to think that the information posted is accurate but you have no evidence that it is. How simple minded can you be?

 

[mcmxi]

Well the 'void' doesn't have to be filled with 'Chinese junk'. It only take an American with some good business ethics and a bank of coins to make and sell the products EA used to.

What planet to do you live on? The market is already filled with Chinese junk.

 

[GreensvilleJay]

Then WHY did anyone buy EA equipment ?

Seems many here, feel EA was a better product,so.. it stands to reason that if someone else starts making 'EA quality' products, they'll be sold before being built....
It doesn't matter if the item is built in NC, SC, MA, CA or KS..... as long as it meets/exceeds the customers requirements, it'll be bought.

 

[fried1765]

Well the 'void' doesn't have to be filled with 'Chinese junk'. It only take an American with some good business ethics and a bank of coins to make and sell the products EA used to.
From a business aspect, EA got all the money up front that paid for raw materials,taxes,wages,heating, power,shipping, etc. AND a tidy profit. So someone else could do the same. Start small, say just 'grapples' (apparently they're a great seller ...) So, open a business called 'Great Grapples', proudly Made in America. Phones should be ringing off the hook PDQ to place orders.

Maybe....BEST GRAPPLES USA ??

 

[D2Cat]

I'm the only one that suggested a pay stub (redacted) because anyone can claim to have inside knowledge and post all manner of BS for their own agenda. What if this particular person was an employee but was fired and now has a grudge. What if this person never worked at EA at all. You and others seem to think that the information posted is accurate but you have no evidence that it is. How simple minded can you be?

If this person was fired a pay stub would be of no advantage, it wouldn't determine him being terminated and had a grudge. Maybe he never worked there.... but maybe he did work there and reports what he discovered. I don't have any evidence of accuracy of his report. I do have an opinion based on other information, as we all do.

I purchased a dual lid grapple from MTL, from Americas Idea Inc. in Tallapoosa, Ga in 9/2018. Been very satisfied with it. I have no need to purchase any implement for EA.

Simple minded? I'm not a complete idiot, some parts are missing.

 

[Jchonline]

I was an employee there for several years, and I want to explain what's really happened to EA in hopes or ending the widespread speculation on this forum. The owner was not paying bills, including carrier/shipping debt (175k to FedEx alone several months ago), third party vendors, taxes, etc. In some cases a customer would request a refund because the wait was longer than initially projected, but our manager would tell us "we really don't have enough in the account for a refund currently". While EA manufactures quality attachments, Ted/Nate were absolutely using money from new orders to cover material costs for older orders. A previous post mentioned the "rob Peter to pay Paul" business strategy, and that is absolutely what was taking place at EA. In addition, some of that money was wasted on non-work related projects like a new Tesla and dock parties at the glass house. We had multiple welders spend close to a year at his glass house on the lake, doing renovations and updates instead. We suggested advising a more accurate lead time (5-6 months, instead of 3-4 months which is what we were telling folks), and Ted's response was "they won't buy if the lead time is too long!". Ted's excessive and wasteful spending is the biggest contributor to EA's downfall. If you have an order in, get your money back if you still can. EA was little more than a glorified Ponzi scheme at the end of its lifetime.

*this was also posted on Tractorbynet, on a now locked forum*

Thanks for sharing. I feel bad for all of the hard working employees. It sounds like Ted needs some jail time.

 

[fried1765]

If this person was fired a pay stub would be of no advantage, it wouldn't determine him being terminated and had a grudge. Maybe he never worked there.... but maybe he did work there and reports what he discovered. I don't have any evidence of accuracy of his report. I do have an opinion based on other information, as we all do.

I purchased a dual lid grapple from MTL, from Americas Idea Inc. in Tallapoosa, Ga in 9/2018. Been very satisfied with it. I have no need to purchase any implement for EA.

Simple minded? I'm not a complete idiot, some parts are missing.

I have an MTL grapple.
No zerks!
Very heavy, and poor quality construction IMHO.
I am too old to wear it out though, so it is OK for me.
I did add several zerks.

 

[Jchonline]

Anyone can post anything and I'd need to see a lot more evidence than an anonymous forum post before I took any of this to be fact. Maybe it's accurate, maybe it's not, but the bar must be pretty low for anyone commenting on this as though it's proven and entered into the formal record.

A copy of a pay stub from EA would be a start.

We all know that IF there were legitimate issues to be resolved, Ted would have come public days ago. The reason he has not is beacuse his attorneys are telling him to stay quiet...as anything he says will likely make it worse for bankruptcy and debts.

Yes it would be nice to have some proof from the poster here, but its the best we have right now.

 

[WDF]

I suppose I never gave EA's "pay up front" business model a second thought until "It happened".

As a matter of fact, before "It happened", EA seemed to be loved by all on this forum.

Every time, on this and other forums, a question about the necessity of collecting "all monies up front" was raised there was immediate pushback saying (paraphase) "EA Is the best", "Dont' like it, don't use them" and so-on.

If you bought something with a check or cash instrument and haven't taken delivery, unfortunately it's looking a strong possibility that instead of being a customer, you're going to be an unsecured creditor.