PacerX Posted October 4, 2007 Posted October 4, 2007 Are they looking for investors? Financing secured? Got a restructuring plan? Need help in any way, shape or form that a Michigan boy with a purchasing/engineering/manufacturing background can provide?
skydog52 Posted October 4, 2007 Posted October 4, 2007 Talked to Heritage dealer in Kzoo and they said they started production on backorders. He said a local lawyer/guitar player is buying company with original great guys staying on for a while. I just hope the quality stay the same!
PacerX Posted October 4, 2007 Author Posted October 4, 2007 Talked to Heritage dealer in Kzoo and they said they started production on backorders.He said a local lawyer/guitar player is buying company with original great guys staying on for a while. I just hope the quality stay the same! Or even improves!
davesultra Posted October 4, 2007 Posted October 4, 2007 Or even improves! Could happen, it happened to Hamer when Kaman took over. (I'm keeping fingers crossed)
PacerX Posted October 4, 2007 Author Posted October 4, 2007 Could happen, it happened to Hamer when Kaman took over. (I'm keeping fingers crossed) Yeppers! Let's all think good thoughts and sacrifice a keyboard and/or an accordian to the Goddess of Guitars.
yoslate Posted October 6, 2007 Posted October 6, 2007 "Please allow me to introduce myself...." Newbie here. Gone to the Dark Side, I have. Don't own a cell phone, nor microwave, and my computer is steam powered with dial-up. Never posted anything on any sort of group. It's all about analog! Not interested in anything underfoot, with the possible exception of a compressor. If I can't get it out of a good stick, a set of .011's, and a decent set of valves, then it's time to climb off. But now I'm in need of a good support group, and from what I've been reading, this site seems to have some good cats writing objectively and well. My dilemma: I have two wonderful Heritage guitars, sold to me by a late, great friend, a former dealer, who was always ahead of the curve. Been my guru since 1968; never wrong about anything guitar (He turned me on to Bloomfield for cryin' out loud!). So enamored of them, I decided to order one on my own, last may 5th, to custom spec. A Super Eagle. Jay and Graham have been terrific. Three weeks ago, at a local shop, I heard about "trouble" at Heritage. Got on-line; not much. Called Graham. He was very accommodating, spilling all he could. Not much. Understandable, given "The Cone of Silence" (You guys remember "Get Smart," right?) lowered over Parsons Street. I'm middle-aged; I understand the nature of guys and the art of the opinion. That's what I'm soliciting. I know what I think, but I'm always interested in a little harmonic feedback. Jay has a couple of pieces I think I'd order tomorrow if I had to. I would very much love to have my one-off! So how about it fellas? Dream guitar, ordered going on six months ago; Real Life intruding at Heritage; shop in Limbo; "restructuring;" bird in the hand...;" a World gone Mad.... Nothing better to do? How about share a little perspective with someone who loves Heritage guitars almost as much as you do. Thanks!
Thundersteel Posted October 6, 2007 Posted October 6, 2007 "The Cone of Silence" (You guys remember "Get Smart," right?) Excellent show! That one, along with Green Acres, were my favorites. I think most of us here are pretty much in the dark about Heritage just as everyone else is. I heard a lawyer is buying them. Heck, it could even be Henry J. for all I know (not a lawyer, but just as evil ). Welcome to the H.O.C.!
yoslate Posted October 6, 2007 Posted October 6, 2007 ;D Thanks, Thundersteel. I've enjoyed your postings. And, yes, "Greenacres IS the place to be...."
Gitfiddler Posted October 10, 2007 Posted October 10, 2007 OK guys, the last news I heard was that specific purchasers were 'doing the deal' in Kalamazoo. (And that was read here!) Anything new as of October 10th? ???
Thundersteel Posted October 10, 2007 Posted October 10, 2007 You know what they say: "No news is good news." I'm keeping my fingers crossed...
LH575 Posted October 11, 2007 Posted October 11, 2007 I emailed Ren about it. I asked if they are back in the shop, working on backorders. He said they are not back to work and are working on the transition. These things can take a while. They are a good company with a solid product. They'll come back. I am sure of it.
Gitfiddler Posted October 11, 2007 Posted October 11, 2007 "He said they are not back to work and are working on the transition..." LH575 Oh crap, that sounds like there are lawyers involved! >
PacerX Posted October 11, 2007 Author Posted October 11, 2007 "He said they are not back to work and are working on the transition..." LH575 Oh crap, that sounds like there are lawyers involved! > Gotta have lawyers in a situation like this.
squawken Posted October 11, 2007 Posted October 11, 2007 Why would a transition, or buyout, halt production? I can't imagine janitors, secretarys, or any other other worker being involved in negotiations. The negative conception to customers who are currently waiting for products, or want to buy products, is just too big to be ignored. I hate to be a negative nelly, but it sure doesn't seem good.
jazzbo Posted October 11, 2007 Posted October 11, 2007 I spent most of August and part of September trying to contact heritage with regard to whether they could update my Sweet 16 pup. After leaving a message with one of the founders at his home I heard from Ren that they were "in transition etc". jay Wolfes guys also delivered the same message. Ren was fantastic on email and provided lots of useful information on the upgrade etc, and how it would be done - rout the body so that they could 'float" an HRW in place of the jazz #3 floater. He informed me that October 1 I should see an improved website with a return authorization form that would let me dispatch the sweet 16 etc ...needless to say its now halfway through October and there aint no new improved site. My gut tells me is that their transition deal has not fully worked out and they are are sitting tight awaiting the final outcome. I heard from various local sources including a reporter that they factory doors are pretty much closed but that people are going in and out of there.. Anyway , I gave up on these wonderful guys, as I needed the upgrade..finally went for a Kent Armstrong PAF handwound with adjustable poles and had it installed by the incredible Richie Baxt , right here in NYC ..the Sweet Sixteen has never sounded better, and beside it looks great as it is still a floater and there has been no carving into this great handmade piece as would have been the case with Rens solution. So anyways boys and girls.wonder how many Heritage guitars will actually be produced in 2007..According to an informed source the annual output was approximately 1500 units, including the Wolfe orders..methinks they made something like 300-500 carved archtop guitars , with the rest either laminates or solidbody's.. Thats not a lot of Heritages... comments ?
Gitfiddler Posted October 11, 2007 Posted October 11, 2007 Yes, I realize you have to have lawyers in deals such as this. I work with and fight with em daily. Sometimes it can be fun and always challenging. But what I meant by my earlier 'lawyer' comments was that they can be the most obstructive bastids on the planet. The more you need them, the more they drag things out that others could resolve in a fraction of the time. I, like most others here wish Heritage the best for long term success. Reading about delayed orders, no updates on their reorganization progress and pending in-shop repairs in a veritable 'black hole', is not comforting...for any consumer, especially since they were founded on the principal of taking (Gibson's) customer service and quality guitars to a higher level.
JohnCovach Posted October 12, 2007 Posted October 12, 2007 These things can indeed drag out. But unless the luthiers are sick or disabled, what reason could there be for not producing the guitars they already have orders for? If they mean to honor these orders, they ought to get to it. If they intend to cancel these orders, I suppose there's no hurry. It just doesn't make sense that things have been so idle for so long. Maybe they have to inventory everything (wood, tools, etc.) in order to sell?
Dick Seacup Posted October 12, 2007 Posted October 12, 2007 Wait, did someone say they're going to roll out a new website?!?! YAY!
squawken Posted October 12, 2007 Posted October 12, 2007 At the very least it is a public relations disaster. I work for a bank that is buying another bank. There is A LOT of transition, and interruptions, but the most important thing for us is to make customers and the public believe that it is a seamless transition. That is the only reason I am pessimistic. I really hope I am wrong, because they are great guitars and I like to root for the little guy.
JohnCovach Posted October 12, 2007 Posted October 12, 2007 Whoever is buying the company must know how important it is for work to resume. If this goes on until hunting season begins in Michigan (Nov. 15), we might not see any real action until after Nov 30 (day the rifle season ends).
golferwave Posted October 12, 2007 Posted October 12, 2007 I've been wondering on this site since day one why they shut the entire plant down during this turnover. They had numerous employees that were put on indefinite layoff after they took their usual July "vacation" break. There hasn't been a guitar manufactured since. Jay Wolfe received an H-150 on September 15th but if you look at the serial number it was assigned in March. I've had email contact with Jay in the past week and he says that they aren't back to work but he expects an announcement any day. I hope this is true but I think that the new company won't be what we have seen in the past. The longer this drags out the more things will change from what we have known - IMHO.
d.kitazono Posted October 12, 2007 Posted October 12, 2007 Hello All, Does anyone have good contact information (telephone, email, etc.) for Heritage? I have an unfilled custom order going back over two years and have not been able to get a reply from them. Unfortunately, the dealer I ordered the guitar from has gone out of business. I've tried the following methods with no luck: 1) Heritage factory -- Left messages on their phone machine. 2) Lane Zastrow -- sent him emails at the amp factory and at: zlane006@aol.com. Also left many messages at the Heritage amp number with no luck. Any help would be greatly appreciated! Thanks, David Kitazono
Thundersteel Posted October 12, 2007 Posted October 12, 2007 Ask Jay for Lane's phone number. I had some problems with my guitar initially; a couple of calls to Lane got them all straightened out!
PacerX Posted October 12, 2007 Author Posted October 12, 2007 These things can indeed drag out. But unless the luthiers are sick or disabled, what reason could there be for not producing the guitars they already have orders for? If they mean to honor these orders, they ought to get to it. If they intend to cancel these orders, I suppose there's no hurry. It just doesn't make sense that things have been so idle for so long. Maybe they have to inventory everything (wood, tools, etc.) in order to sell? Money. They most likely lack the cash to operate. Yes, everything is inventoried in an acquisition. In many cases businesses are bought off of the value of their WIP - "Work In Process" - and/or the value of their equipment and building, or off of a "multiplier". A "multiplier" purchase takes a given value on the money they made in a given year (EBIT or EBITDA) and multiplies it by some number ("5" comes up a lot) to get the purchase price. It all depends on the state the company may be in. If you're making money hand over fist, and don't have a lot of equipment or a valuable building, you would want to sell off of a multiplier. If you aren't making money, or are in bankruptcy, the only option can be to sell the company off of the value of it's assets (WIP and equipment).
PacerX Posted October 12, 2007 Author Posted October 12, 2007 Yes, I realize you have to have lawyers in deals such as this. I work with and fight with em daily. Sometimes it can be fun and always challenging. But what I meant by my earlier 'lawyer' comments was that they can be the most obstructive bastids on the planet. The more you need them, the more they drag things out that others could resolve in a fraction of the time. I, like most others here wish Heritage the best for long term success. Reading about delayed orders, no updates on their reorganization progress and pending in-shop repairs in a veritable 'black hole', is not comforting...for any consumer, especially since they were founded on the principal of taking (Gibson's) customer service and quality guitars to a higher level. Well... I hope for the best also.
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