Holley files for chapter 11 bankruptcy

So... do you guys think holley can regroup from this or is this the start of the end for them

i really hate buying other peoples rebuild kits had too many problems with non holley parts


Oh they own MR gasket too

 

I would imagine Holley has lost a lot of business to Demon and Edelbrock. They used to be pretty much the only choice for performance carbs; now they're one among several

 

I feel for you man...............did you feel dirty after touching that abortion?

 

Not entirely true. They were bought out by a couple of the guys that own Comp Cams, but are not a part of the Comp Cams entity.

Holley owns Earls, Flowtech, Hooker, NOS, Weiand.

They went through this a couple of years ago. We new it was coming. We could make a little money on the lines for a while... then slowly we were giving away Hooker headers... I sold a set wholesale yesterday that we made $1.56 on. Then the carbs were whored up again... sold one today that I made $0.32. Holley was hurting and trying to raise capitol so they were taking orders from anyone at huge discounts just to increase cash flow...

In 5 years we'll see the same thing...

 

what a shame,hopefully than can regroup and stay afloat

 

I bathe daily, so....I felt worse for the car than myself......
It was actually a pretty nice 57. Maybe paying six figures back then for a FI clone, then changing everything but the seat covers was a clue to why they're in chapter 11 today.

 

i still have the best luck with holly carbs and pumps

 

i got your buddy right here Mike... ironic is, holley named the car "heartbreaker" didnt they?

 

PS mike, does your boss know you fuck around on the internet all damn day?

 

So they go deep in debt,buying up other big brand names,
and now is the time to weasel out of their obligations.

Welcome to American "Big Business".

 

Simply said........and so true. Thats just the direction the Bozos running our country have led us in. Many have filed in personal/business live.

They just don't get it. Send tons of jobs across the pond, increase entitlements/spending and then look to the handful of working people for more tax dollars to keep the machine rolling.

 

Don't worry Unk, Canada is at it as well.


http://www.bicycleretailer.com/news/newsDetail/929.html

 

Paying too much for those big name brands was part of their problem. The fact that a lot of the products were outdated didn't help.

 

Hey, quit picking on weasels, they are fine upstanding members of society and once a weasel always a weasel. You can't keep a good weasel down......

 

You mean like those simple little power valves at $13-20 each that cost at most 50 cents to make?

 

I think it goes something like this:

A few years ago Holley makes a big move to become THE source for high performance. They buy some well respected brands to supplement their own. A huge amount of debt is incurred to buy these companies, but a strong business case is made that shows quick payback and low risk.

Then a few things happen that destroy this plan:
1-New management at Holley with a new vision
2-No understanding of how to sell products from the new brands – existing customers lost
3-Loss of growth in the aftermarket/performance industry. When gas is over $3 per gallon, it tends to limit how many customers are buying parts for their toys.

Lunati was a prime example. Purchased as a successful company selling to racers, Holley drove them into the ground by eliminating their customer base and requiring them to sell through Warehouse Distributors. Yeah, I’m sure Warren Johnson always goes to Advance Auto for a custom crankshaft.

Bottom line, the huge debt wasn’t due to any malicious intent; it was justified with a plan that might’ve worked with a few less bean counters in charge and the cost of gasoline not doubling since the purchases were made.

This reorganization looks more like a repo to me. Those that hold the loans are taking ownership of the company, and forgiving about 50% of the loan amounts.

 

I wonder if part of the restructuring will including moving the manufacturing to China?

That seems to be the thing for most of these big investment companies to do...buy a well know reputable name or brand move the manufacturing overseas, pocket the savings and let the quality of the product go to shit. By the time the general public figures out the quality is no longer there the investores have made their money and moved on to the next victim.

 

Do you work for Holley/Lunati-with your home being Kentucky and your user name??

I worked for Comp Cams/RHS back in the early 90's . I have kept in touch with several people who have moved on from CC but are still in the aftermarket.

The "golden age"" of the hobby has clearly been the last 6-7 years. One friend told me they attributed a lot of the sales over the last 5-6 years to the huge runup in home prices and the subsequent home equity loans from those homes which purchased multiple hobby cars and lots of speed equipment.

Now that the homes are worth less than their loan amount those days have come to an end. The piper is calling.

My friend told me that he predicts 50% of the speed shops, hot rod builders and speed equipment manufactueres are not going to be here in 5 years due to consumer debt load/housing arms readjusting and the "graying" of the hobby. I know who he works for now and he did not get there by being a dummy.

 

Didn't they go on a buying spree to buy up all those divisions they now have?

 

Lunati c is a wise observer. I was in retail during another "Golden Era" late 60s to early mid-'70s when gas shortages and prices killed my speed shop. Remember when a VW bug was advertised for sale and half a dozen potential buyers showed up to battle and bid? Holley once ruled but failure to adjust to their market (us) and bean counter mentality corporate greed is the problem. Look at Edelbrock. They know the market, adjust and flourish. I don't buy that "greying market" premise either. Young guys today are still spending lots of bucks on crap we old dudes used to laugh at - 4-doors? Are you kidding? They load them up with 6" tailpipe tips and computer chips and 19" dumb wheels. Hey, that sounds like my grandson!

 

This is just an extension of the 70's when names like WR Grace, Whittiker Corp, Filter Dynamic's Inc were the players that were going to show the speed equipment industry how "to make real money". A lot of speed equipment pioneers bought back their companies for ten cents on the dollar back then.

 

Kinda like Boyd Coddington.

 

I did not say the young kids in the hobby were not buying anything. The problem is there is not just enough of them to keep the hobby going at the current level.

Most shows and cruises I go to the vast majority of attendees are age 40+ Some street rod events I attend the grey hairs are 75-85% of the crowd.

 

Kinda like Boyd Coddington.

Not even close! Names I'm talking about are Els Lohn, Louie Senter, Bob Hedman, etc.

 

bummer town near me has a factory and distribution center this is not gonna do the town any good in its already depressed economy ..

 

I can sort of feel their pain. Although it sounds alot like bad management practices. One year ago I bought a house to keep the misses happy and give me a shop to play in. This place is costing me 40% of my gross income each month. Bad judgement? maybe but I'm happy here and have a shop to make extra income on the side.I just hope I don't get laid off or I will be up shit creek!!!

 

2nd.

 

The cars will bere but the groups are aging. Look at the antique guys-they're in their 80's now and prices are flat except for the high end stuff. Street rodders are in their 50's-all that Graffiti nostalgia. The muscle car guys are in their 40's.tuners are now pushing 30. So it goes. The market's there,always will be but it's changing and so is the disposable income that's needed to driveit. Ain't dead yet, though