Tommys vs Malibu

[oldjeep]

Doesn't really seem like a good time to let any location have your boat.

[oldjeep]

9 minutes ago, oldjeep said:

Doesn't really seem like a good time to let any location have your boat.

And I should say - this is a terrible way to wind up with a self fulfilling prophecy.  People pull their boats out of service and refuse to bring them in, causing the service dept to shut down.  So sucks for the employees.

[MikeR397]

7 hours ago, The Hulk said:

Praying Detroit stays open for a few days

I was there yesterday, they said it’s generally business as normal except selling a new boat requires bank communication that day to make sure things are documented. Of course, things could change at any moment so I did pick up my boat and made sure to spend my pro shop credit, but they were great and on business as normal 

[cowwboy]

45 minutes ago, oldjeep said:

And I should say - this is a terrible way to wind up with a self fulfilling prophecy.  People pull their boats out of service and refuse to bring them in, causing the service dept to shut down.  So sucks for the employees.

Or maybe just plan to drop off one the tech is ready and plan to pick up once techs are done. No storing it there while waiting on parts etc.

[ahopkins22LSV]

17 minutes ago, MikeR397 said:

I was there yesterday, they said it’s generally business as normal except selling a new boat requires bank communication that day to make sure things are documented. Of course, things could change at any moment so I did pick up my boat and made sure to spend my pro shop credit, but they were great and on business as normal 

I am picking ours up today. I have been pleased with how they are handling the situation with us. I can't imagine what it is like for the employees at any location.

[MikeR397]

32 minutes ago, cowwboy said:

Or maybe just plan to drop off one the tech is ready and plan to pick up once techs are done. No storing it there while waiting on parts etc.

Ya that’s my plan, including for 10hr service. I service my own stuff but know they require dealer service for the warranty so I told them I’ll do it with them or sit and watch but it’s not getting checked into the system for service until completed and I’m pulling out of the parking lot (and under no circumstance staying overnight). 

[Slayer]

9 hours ago, The Hulk said:

Praying Detroit stays open for a few days

Me too.  They called me this morning to advise me that my boat is in Grand Rapids getting gel coat repairs under warranty.  I was supposed to get it tomorrow, and now it's next week.  Not thrilled with this to say the least.  To @ahopkins22LSV and @MikeR397, I'm happy to hear you're pleased with how they're handling things for you.  I can't say the same.  My boat has been there since the last week of February and this is the 3rd time it's been held up.  Also, we do have Gull Lake and the Coldwater dealers in the state.  I've spoken with Full Lake and they've said they would service my boat if needed.  

Edited May 3 by Slayer

[Moulton9]

3 hours ago, Slayer said:

Me too.  They called me this morning to advise me that my boat is in Grand Rapids getting gel coat repairs under warranty.  I was supposed to get it tomorrow, and now it's next week.  Not thrilled with this to say the least.  To @ahopkins22LSV and @MikeR397, I'm happy to hear you're pleased with how they're handling things for you.  I can't say the same.  My boat has been there since the last week of February and this is the 3rd time it's been held up.  Also, we do have Gull Lake and the Coldwater dealers in the state.  I've spoken with Full Lake and they've said they would service my boat if needed.  

I picked my boat up last night from the GR location as it was also getting warranty gel coat repair. It was done quickly and I was happy with the timing. They also summarized the boat while it was there and everything seemed business as usual. 

[TexasTurner]

On 5/2/2024 at 9:04 PM, Craig98 said:

I just got a call at 8:30 PM from the service manager at the Tommy's dealership in Fort Worth.  He said they are locking their doors tomorrow by noon and I needed to come pick up my boat or it would be locked up for an indefinite amount of time.  I will be there when it opens!!  I just HOPE it opens.  So now I have a boat (or I damn well better have one!) under warranty (2022) at the start of the season that needs a new surf gate actuator and no way to get it.   Anyone around DFW got info on warranty work?

I had warranty work done yesterday. Glad I pushed the issue because the lake call manager was trying to push me to next week. They were here (Eagle Mountain Lake) around 9:45 a.m. to replace a port side ballast pump, rear bilge, and clear fault codes. He never said a word about anything. 

[eubanks]

Got my boat back Friday from Tommy’s. They aren’t selling any boats right now. Sounds like some things are in the works, at least for the DFW dealership. I’m hopeful for a good outcome for the employees and current customers. Hard to imagine Malibu would give up one of, if not their strongest market in the country. 

[NWBU]

I'm guessing we'll see some of the former owners take back their locations as independent dealers as this shakes out over next couple of months. Most of them still own the real estate, so updating the signage/branding, signing a new dealer agreement with BU and getting back to doing what they love won't be a stretch for some.

[braindamage]

25 minutes ago, NWBU said:

I'm guessing we'll see some of the former owners take back their locations as independent dealers as this shakes out over next couple of months. Most of them still own the real estate, so updating the signage/branding, signing a new dealer agreement with BU and getting back to doing what they love won't be a stretch for some.

I really doubt this. It would be extremely complicated and costly to unwind the company one bit at a time.

Edited May 5 by braindamage

[NWBU]

44 minutes ago, braindamage said:

I really doubt this. It would be extremely complicated and costly to unwind the company one bit at a time.

I don't have a crystal ball but if the gates are chained shut, then Tommy's isn't making the decisions anymore. There's deep pockets behind Tommy's so I doubt all locations will be dumped, but we know some are already being shut down.

The property owner (who for some sites is the experienced prior boat dealer who kept the real estate in the initial sale to Tommy's), bank and Malibu are then having conversations that Tommy's isn't invited to. If those 3 parties reach an agreement, there's a new dealership in town in a matter of weeks.

If the property was always leased from an unrelated investor, then running the new dealership ownership team through that process could take a bit longer.

[windy1]

I sold my business 8 years ago and the last thing I want is to get it back.

[braindamage]

This ^^^

[braindamage]

I ran the distribution network for a large industrial company for many years.
 

We would first offer to dealers who are contiguous, stable, and good partners. For those locations where there isn’t a local fit, we’d then look for a small quantity of large dealers who are looking to expand.

In no scenario would we want the owners who sold back as a general rule.

[oldjeep]

9 minutes ago, braindamage said:

I ran the distribution network for a large industrial company for many years.
 

We would first offer to dealers who are contiguous, stable, and good partners. For those locations where there isn’t a local fit, we’d then look for a small quantity of large dealers who are looking to expand.

In no scenario would we want the owners who sold back as a general rule.

On the other hand - selling boats, in a recession with rising interest rates.  Any port in a storm.

[braindamage]

Just now, oldjeep said:

On the other hand - selling boats, in a recession with rising interest rates.  Any port in a storm.

I suppose.

We’d use this as an opportunity to reshape the dealer network in the image for the future unless the financials were existential. Not sure what Malibu will do.

[BLSousa]

My assumption: There is likely a venture capitalist/private equity group behind tommy’s expansion that should have a 1st position deed of trust on everything except most of the floor plan boats. The VC will acquire all of Tommy’s assets and Malibu will likely work with them 1st to establish a new dealer, or who the VC chooses to sell to. The sweetheart building leases with the old owners will be canceled and replaced with new sub market leases. 
 

As part of the new deal, the new dealer will continue to sell the repo boats for the floor plan lender. From that point forward it is pretty much business as usual. 
 

The only thing I see messing this up is if Tommy’s has another senior lender or is valued at more than the VC/PE’s loans. 

[IXFE]

9 hours ago, eubanks said:

Got my boat back Friday from Tommy’s. They aren’t selling any boats right now. Sounds like some things are in the works, at least for the DFW dealership. I’m hopeful for a good outcome for the employees and current customers. Hard to imagine Malibu would give up one of, if not their strongest market in the country. 

Oh trust me… they will NOT concede this market. There will be a new dealer in DFW very soon, is my guess. 

[IXFE]

4 hours ago, windy1 said:

I sold my business 8 years ago and the last thing I want is to get it back.

What if you sold that business, pocketed the proceeds, and could suddenly get back in for $0…? 

Still not interested…? 

[oldjeep]

54 minutes ago, BLSousa said:

My assumption: There is likely a venture capitalist/private equity group behind tommy’s expansion that should have a 1st position deed of trust on everything except most of the floor plan boats. The VC will acquire all of Tommy’s assets and Malibu will likely work with them 1st to establish a new dealer, or who the VC chooses to sell to. The sweetheart building leases with the old owners will be canceled and replaced with new sub market leases. 
 

As part of the new deal, the new dealer will continue to sell the repo boats for the floor plan lender. From that point forward it is pretty much business as usual. 
 

The only thing I see messing this up is if Tommy’s has another senior lender or is valued at more than the VC/PE’s loans. 

If you read about the other suits, it seems that the main guy and his family pledged personal assets as collateral for the other loan they are defaulting on.  

[The Hulk]

12 minutes ago, oldjeep said:

If you read about the other suits, it seems that the main guy and his family pledged personal assets as collateral for the other loan they are defaulting on.  

Thats odd and goes against business 101 for wealthy individuals....

[NWBU]

23 minutes ago, IXFE said:

What if you sold that business, pocketed the proceeds, and could suddenly get back in for $0…? 

Still not interested…? 

With the noncompete voided…

[oldjeep]

1 minute ago, The Hulk said:

Thats odd and goes against business 101 for wealthy individuals....

All I know is what I read;). It is in that paywall article mentioned above.  The part about their other bank issue.