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Old June 10, 2019, 15:25   #1
Story
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Bye Bye United Sporting Companies

Quote:
Firearms distributor United Sporting Cos. loaded up on guns ahead of the 2016 U.S. presidential election, expecting a surge in sales that would likely follow the election of a Democrat. Then Hillary Clinton lost.

The miscalculation sparked a multi-year decline that has reached the courthouse steps in Delaware, where United filed Chapter 11 bankruptcy on Monday.
https://www.bloomberg.com/news/artic...nited-sporting

These guys https://www.unitedsportingcompanies.com/
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Old June 10, 2019, 15:36   #2
meltblown
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Well sometimes when plan to mop up, and don't hedge your bet, shit happens.
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Old June 11, 2019, 15:33   #3
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There are questions about the holding company and its finances. A lawsuit is alleging that an investment firm loaned the holding company $160-170 million to finance the gun sales companies when sales slowed down. Instead, the holding company paid the share holders their dividends and payed of the holding company debts instead. The investment firm has filed a lawsuit against the holding company. Doesn't do USC or Ellett Brothers any good.

From the linked article:

"In an objection filed Monday afternoon, attorneys for Prospect Capital Corp. -- one of United’s lenders -- blamed mismanagement at the hands of its largest equity owner, Wellspring Capital Management......

But Wellspring “cashed out” more than $183 million through dividend recapitalization deals in 2012 and 2013, then appointed fiduciaries who “grossly mismanaged the business and depleted all reserves necessary to weather the storms and the headwinds the business would face,” the dissenting lenders said."
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Old June 11, 2019, 17:48   #4
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My guess is that people will go to jail for theft over this...

Also, blaming it on overbuying ARs and whatall kind of glosses over the fact that Jerry's treated many of their customers like shit and the customers went elsewhere...

Just sayin'...

Forrest
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Old June 11, 2019, 18:33   #5
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Quote:
Originally Posted by ftierson View Post
My guess is that people will go to jail for theft over this...

Also, blaming it on overbuying ARs and whatall kind of glosses over the fact that Jerry's treated many of their customers like shit and the customers went elsewhere...

Just sayin'...

Forrest
Surely you jest?! Financial people don't go to jail!

(Or at least, not often enough.)
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Old June 11, 2019, 21:42   #6
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They were my lone distributor, mainly because they were easy to deal with and did not have stocking dealer requirements. They went bye bye kwik, not even an e-mail, the website is dead.

krf
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Old June 12, 2019, 18:57   #7
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How long until the bankruptcy court ordered auction?

Who are the potential buyers?
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Old June 12, 2019, 19:09   #8
meltblown
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Never bet against Orange was the headline on ZH. Obviously they screwed up trying to time a market to mop up. I hear that Cheaper Than Dirt is running some good prices these days. Business models from 2012 are different now.
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