Kazootattoo Posted January 4, 2015 Posted January 4, 2015 Saw a FB post recently from,"someone who would know", that Heritage was for sale. ( I know the actual building is changing hands, to new owners ) Any info out there on what may be going on ? Thanks
davesultra Posted January 4, 2015 Posted January 4, 2015 I haven't heard anything about the company being up for sale. I am aware of their situation regarding the building at 225 Parsons St. though.
brentrocks Posted January 4, 2015 Posted January 4, 2015 Marv and Jim will sell....for the right price
JohnCovach Posted January 4, 2015 Posted January 4, 2015 I know I've said this before when this topic comes, but I really think it would be smart for Gibson to buy Heritage and keep it as a boutique line. I understand a lot of folks here wouldn't like that very much.
Jim W Posted January 4, 2015 Posted January 4, 2015 I know I've said this before when this topic comes, but I really think it would be smart for Gibson to buy Heritage and keep it as a boutique line. I understand a lot of folks here wouldn't like that very much. Gibson looked at that option while Heritage was closed down years ago. The outcome was that there was not enough ROI potential.
Dick Seacup Posted January 4, 2015 Posted January 4, 2015 Gibson looked at that option while Heritage was closed down years ago. The outcome was that there was not enough ROI potential. It would be funny if a consortium of ex-Gibson executives (the ones fired or who quit) pooled their capital and bought it.
TalismanRich Posted January 4, 2015 Posted January 4, 2015 I don't see why they would buy Heritage, they already have a custom shop, and I don't see Henry as being one to reminisce about doing things the way they were done 50 years ago. Gibson custom shop is already a "boutique" line for them. LIkewise PRS, who also has moved beyond the "build by hand" to modern CNC methods. It MIGHT be of interest for the archtop line, though.
PunkKitty Posted January 4, 2015 Posted January 4, 2015 I really don't see Heritage surviving at the 225 Parsons location if they are bought. My guess is that the brand might be bought but that production will move.
Blunote Posted January 4, 2015 Posted January 4, 2015 I'd like to see the current employees pool their resources and buy it. Just like the current owners 30 years ago, they'll still need jobs and may not want to stop making guitars.
HANGAR18 Posted January 4, 2015 Posted January 4, 2015 There is a difference between the property being offered for sale and the company Heritage Guitar Incorporated being offered for sale. Gibson recently sold their Tennessee factory and continue to rent it from the new owner.
Dick Seacup Posted January 4, 2015 Posted January 4, 2015 There is a difference between the property being offered for sale and the company Heritage Guitar Incorporated being offered for sale. Gibson recently sold their Tennessee factory and continue to rent it from the new owner. Lease back after sale has been pretty popular in industry (well, I don't know about the musical instrument industry specifically) for the last ten years or so. Lots of large companies tired of operating outdated data center facilities are selling the bricks and mortar off, then leasing it back from a couple of specialized companies who shoulder the burden of updating and renovating. I know from my time in the (circle of hell known as the) data center management group that my current employer has investigated this, as we have six major data centers globally. Our primary facility is run like it's still 1996, which is mind-boggling. It doesn't surprise me that Henry J would do something similar. Lease payments are an operating expense vs. capital, IIRC, so there are financial benefits in the arrangement (particularly if your facility is old enough that you've already realized most of the original depreciation, I think; but I'm not an accountant so I could be--and likely am--way off).
HANGAR18 Posted January 4, 2015 Posted January 4, 2015 Lease back after sale has been pretty popular in industry (well, I don't know about the musical instrument industry specifically) for the last ten years or so. Lots of large companies tired of operating outdated data center facilities are selling the bricks and mortar off, then leasing it back from a couple of specialized companies who shoulder the burden of updating and renovating. I know from my time in the (circle of hell known as the) data center management group that my current employer has investigated this, as we have six major data centers globally. Our primary facility is run like it's still 1996, which is mind-boggling. It doesn't surprise me that Henry J would do something similar. Lease payments are an operating expense vs. capital, IIRC, so there are financial benefits in the arrangement (particularly if your facility is old enough that you've already realized most of the original depreciation, I think; but I'm not an accountant so I could be--and likely am--way off). I should compare data center company stories with you sometime.
schundog Posted January 4, 2015 Posted January 4, 2015 I'd like to see the current employees pool their resources and buy it. Just like the current owners 30 years ago, they'll still need jobs and may not want to stop making guitars. I would love to see that, too, ideally. Now, I don't mean any disrespect to any of them with these next observations, as I think the world of these people, but I would be surprised if they would be able to put together the financing to buy the business without an outside investor. Also, one thing the old guard had going for it was the fact that they not only had their experience as luthiers, but as higher level managers at Gibson. They knew how to negotiate/deal with vendors going in, and had some business experience. While the younger crew is very passionate about their craft, and are the best in the biz, I don't know if they could run the business side of it. Perhaps I'm wrong; maybe, without current management's interference, some things that need to be desperately updated would be taken care of or addressed. The "feel good" story of a young businessman coming in to help revitalize the company didn't feel very good in the end, at all. Lots of bad blood there. That's a shame, because I think that situation, or a situation like that, is the only way the place has a future to look forward too much past the next few years.
Kuz Posted January 4, 2015 Posted January 4, 2015 Many people don't realize that The Heritage Company has been in business/survived for longer than many other guitar makers including PRS!!!! No matter how much longer they opperate, The Heritage Company can only be labeled as a SUCCESSFUL business.
Dick Seacup Posted January 4, 2015 Posted January 4, 2015 I should compare data center company stories with you sometime. I still have nightmares.
JohnCovach Posted January 4, 2015 Posted January 4, 2015 The key element in Gibson buying it (and things in the business have changed since the last Heritage shutdown) would be to reclaim the "built in Kalamazoo" label. This provides an opportunity to connect more directly to the rich Gibson history. Imagine the premium price they could get for '59 LPs that were actually built in Kalamazoo. It wouldn't matter sound-wise, of course, but when it comes to the reasons why a lot of boomers buy guitars, it would be pretty lucrative. Even a special run of Kalamazoo historic guitars, changing up years and models and making them limited runs. On the other hand, the big negative is that any purchase by Gibson would pretty much mean the end of Heritage as we have known it. But that might be coming anyway.
bolero Posted January 5, 2015 Posted January 5, 2015 I'd buy it, but I don't have enough money I'm also from Canada....which would be kinda weird would anyone object if the owner of Heritage Kalamazoo was from Canada?
yuominae Posted January 5, 2015 Posted January 5, 2015 I'd buy it, but I don't have enough money I'm also from Canada....which would be kinda weird would anyone object if the owner of Heritage Kalamazoo was from Canada? I'd like to do that too. How much do you need to buy off Heritage? Must be a few $Millions?
brentrocks Posted January 5, 2015 Posted January 5, 2015 last I heard....the # was somewhere around 1 million for the name (that might include the machinery/tooling too?) this comes from a very reliable source which will remain un named
yuominae Posted January 5, 2015 Posted January 5, 2015 1 million... My money isn't going to stretch that far. Anybody who'd like to partner up to buy the place?
Dick Seacup Posted January 5, 2015 Posted January 5, 2015 In a past life, when I was running a bar, there was a joke about how if you wanted to make a million in that business you first had to start out with two million. Can't remember exactly how it went, but the idea was it was a losing proposition. Man, those were some fun years, though.
PunkKitty Posted January 5, 2015 Posted January 5, 2015 If you are able to take up a collection to buy it, do it with the condition that they guys hang out for a year or two to teach you the business.
davesultra Posted January 5, 2015 Posted January 5, 2015 last I heard....the # was somewhere around 1 million for the name (that might include the machinery/tooling too?) this comes from a very reliable source which will remain un named OK, if anyone needs me, I'll be walking up & down 94 picking up bottles and cans!
JeffB Posted January 5, 2015 Posted January 5, 2015 In a past life, when I was running a bar, there was a joke about how if you wanted to make a million in that business you first had to start out with two million. Can't remember exactly how it went, but the idea was it was a losing proposition. Man, those were some fun years, though. Along the lines of the guitar player that won a big sum of money in the lottery and decided to keep gigging until the money was all gone.
Recommended Posts
Archived
This topic is now archived and is closed to further replies.