BMX
Out of context: Reply #135
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- Horp1
Not sure how big this news is outside of the UK, but Source BMX who are pretty much the Amazon.com of BMX retail, has gone into what appears to be a pre-packaged administration.
Pre-packaged meaning, I think, that one pre-designs a process so that Old Business Owner A (OBOA) can place their company into insolvency, escaping all of the debts that have built up, and they then auction off, quickly and quietly, the assets and the stock to New Business Owner B (NBOB).
so OBOA knows, might even be directly related to NBOB, and only they know when the auctioning off of stock, assets, business will take place.
OBOA lets NBOB buy it all for like 10% of it's value, and the business can pretty much carry on but as a new business in the same place with a similar name and a different owner/director.
Which means that all the suppliers who extended the business credit lines now can't get back what they extended because that business has gone into insolvency. NBOB's business looks, feels, sounds and operates the same, and is even selling the stock that has not been paid for, but it's a new business.
NBOB's new biz got a shit tonne of stock and other assets for almost nothing. The old debts can only be paid by what the old business has available to settle with. In this case the 10% auction earnings for absolutely everything.
So the supplier brands lose out. Which if true, is shitty.
But going back to Source, if that's what has happened ^ and I don't know for sure that it is, then whatever lead them to this in the first place isn't going to magically vanish now NBOB is running it, and what's more, those BMX supplier brands are going to be pretty pissed at having their stock effectively stolen, and still sold legitimately by an exact copy company, and they won't get their payment for it.
I mean, if I've got this right and I was Cult or Subrosa or WTP or whoever, I'd be telling them to GFT from here on. They may be the biggest but they aren't they only BMX retailer with online ordering/delivery capabilities.