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Old 04-15-2021, 10:01 AM   #21
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Private equity’s familiar game plan-cut staff, lower wages, take on lots of debt, soak the company for management fees, file bankruptcy, blame something other than short term greed and mismanagement.
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Old 04-15-2021, 10:12 AM   #22
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Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

I'll make a billion dollars and then I can buy the Nordie.

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Old 04-15-2021, 10:51 AM   #23
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So wasn't WM acquired a few years ago with the promise they would get back to boat stuff and less cloths?
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Old 04-15-2021, 12:09 PM   #24
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You left out enhancing the customer experience. Things are definitely trending in that direction. But let me circle back and loop you into that discussion.
KT....listen to this guy....he has a Nordie!!!!
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Old 04-15-2021, 12:51 PM   #25
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Several years ago I had the pleasure (?) of working for WM in the rigging shop -- thought I'd get some real-world education and practice in a fairly specialized profession. At that point I'd already spent four years as mechanical repair and maintenance at a sailboat charter company, so I had a bit more know-how than your average bear with respect to boats and systems.

The two things I learned working there:

* WM makes more money on WM-branded products; drop what you're doing and get on the floor.

* Always push the WM protection plans, because it's free money for the corporation.

Since the manager bonuses were based on these two factors, those became our priorities. Knowledge, experience, and doing the job right received high-profile lip service but the scramble for the mighty dolla left those broken and bleeding on the floor.

I doubt a private equity firm (slogan: "All Your Money Belongs To Us") is going to reverse these operational goals. Have a heart and spend your dollars with the local guy, who definitely has more knowlege than a sales droid and will give you better value for your dollar.

That is all.
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Old 04-15-2021, 02:15 PM   #26
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Originally Posted by kthoennes View Post
Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

I'll make a billion dollars and then I can buy the Nordie.
Too Funny!
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Old 04-15-2021, 02:25 PM   #27
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So wasn't WM acquired a few years ago with the promise they would get back to boat stuff and less cloths?
Yeah but their admitted ultimate goal was to get the company in good enough shape to sell at a profit.
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Old 04-15-2021, 06:39 PM   #28
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Yeah but their admitted ultimate goal was to get the company in good enough shape to sell at a profit.

I don't think selling to another private equity firm for an "undisclosed amount" is likely a profitable sale. More like passing the turd to someone else who thinks they can polishing it better. Hopefully they can.
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Old 04-15-2021, 07:41 PM   #29
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Did zincs on the boat today.

Been shopping around for the various zincs for my boat. ZN4, Lewmar thruster anodes, etc. Found what I needed in stock thanks to Fisheries Supply, Seattle Marine Fishing & Supply, Cap Sante parts counter (for Lewmar parts).

No one place will ever have all the sizes I use, so I get to visit the cool marine candy stores in the greater area, and Covid-19 hasn't helped either.

WM? Oh yeah, they have 2 Lewmar zincs in Pt Townsend, that's it. Nothing else on my list in all the other greater Puget Sound stores. I'll stick with my fav marine candy stores.
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Old 04-15-2021, 08:16 PM   #30
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To me West stepped on their own dick when they got greedy and went Port Supply. It seemed like, in order to offer discounts and delivery to the trade, they raised store prices opening the door again for local stores and even marinas after capturing all that business over the years by buying out or putting out of business most other sellers. Greed strikes again. Love it.
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Old 04-15-2021, 08:41 PM   #31
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To me West stepped on their own dick when they got greedy and went Port Supply. It seemed like, in order to offer discounts and delivery to the trade, they raised store prices opening the door again for local stores and even marinas after capturing all that business over the years by buying out or putting out of business most other sellers. Greed strikes again. Love it.
Port Supply pricing used to be attractive when they first started it but it has gotten worse over time. Discounts hardly worth the bother and don't come close to Defender commercial acct prices.
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Old 04-15-2021, 09:53 PM   #32
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Port Supply pricing used to be attractive when they first started it but it has gotten worse over time. Discounts hardly worth the bother and don't come close to Defender commercial acct prices.

Look at the overhead they have compared to Defender or Kellogg plus they deliver. I represented a company for 20 years that wanted it all, wanted to sell direct, through distributors and finally online. They started out as the largest in the business and ended up an also ran. They bought competitors out time and again and could have used those names to sell other channels. But no, too vain, everything had to be under their name. They had it all and then nothing.
They all read the same book at Harvard Business School.
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Old 04-15-2021, 10:13 PM   #33
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A couple of points. Port Supply has been changed to West Marine Professional. Over time, they've been deemphasized by the new owners (since 2017) and their incentives to professionals in the industry have been reduced. They probably only add a small profit, but they can enable West Marine to increase volume and get benefits from vendors if done correctly.

L Catterton is very different from the private equity firm selling West Marine. They're many times larger and they are owned by very successful and deep pocket companies themselves. They are capable of doing things the previous owners were not. What they will do is to be seen, but I do hold out hope that they'll take some positive and aggressive actions.

As to the Pandemic, I think West Marine failed miserably when they didn't have to. Hardware stores and Auto Parts stores had nice increases in business through aggressive pick up and delivery business.

The clothing was a failed experiment although I'm sure they were convinced higher margin items selling more per square foot would be a great move. It's not a good move when it leads to more outages on your base business and the number one criticism I hear of West Marine is the thin inventory levels. They for some reason believed that saying we'll have it tomorrow would be enough. Well, tomorrow, you can get it from anyone.

I believe West Marine can be successful. However, they really need some experts from Auto Parts and/or Hardware to guide them. Can't be run like clothing stores or jewelry stores or other retail. Most of L Catterton's current businesses are not at all similar to West Marine. One that is I believe, would be Leslie's Pool supplies.

Now, L Catterton normally could be expected to try to improve and flip in three to five years. However, since LVMH became a partner in L Catterton, I don't know if the philosophy will change. LVMH doesn't buy businesses just to flip them but invests to grow and profit.

I certainly have more hope for them this week than last. Still no way to know until they show us.
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Old 04-15-2021, 10:39 PM   #34
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"and the number one criticism I hear of West Marine is the thin inventory levels."

B & B, totally agree. Before zincs, I was at WM in PDX for marine grade wire. Half the spools on the rack were bare or less than 10 feet of wire. Disappointing to say the least.

I know copper demand is way up, but they should be on top of this. Other shops got wire.

Bean counters that don't have boats are gonna kill this company.
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Old 04-15-2021, 10:45 PM   #35
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"and the number one criticism I hear of West Marine is the thin inventory levels."

B & B, totally agree. Before zincs, I was at WM in PDX for marine grade wire. Half the spools on the rack were bare or less than 10 feet of wire. Disappointing to say the least.

I know copper demand is way up, but they should be on top of this. Other shops got wire.

Bean counters that don't have boats are gonna kill this company.
No, not bean counters, it's investors who don't know the business or don't have the money they're willing to spend to maximize the company.
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Old 04-16-2021, 10:26 AM   #36
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Band.B, I agree completely. West could be saved but probably not by the group that owns them now.
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Old 04-16-2021, 11:09 AM   #37
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I tend to get my stuff at Fisheries now. The statement, we will have it tomorrow then 4 days later........
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Old 04-16-2021, 11:19 AM   #38
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Band.B, I agree completely. West could be saved but probably not by the group that owns them now.
Why do you say that about L Catterton? They've saved some other sizable companies. Some they own now, some they resold. Definitely far more able than the previous owners.
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Old 04-23-2021, 12:48 PM   #39
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We’ll save $

West marine’s prices were exorbitant, many times over 2x others prices, the service in My local wm non-existent and one needed to order most items. I’ve found most west marine labeled products were of a poorer quality vs a name brand and usually the same or higher price.

Not sorry to see them go!
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Old 04-23-2021, 12:49 PM   #40
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I always laugh about the press releases that talk about a "merger of equals." I was directly involved in one of those years ago. Two banks, one with a very well-known name. They did a "merger of equals." The well-known name was retained. Everyone thought that the well-known bank took over the lesser-known bank.

Um, yeah, except that the CEO of the lesser-known bank became the CEO of the merged banks. The COO of the lesser-known bank became the COO of the merged banks. In fact, after the merger, about 3/4ths of the executive management were from the lesser-known bank. Board meetings were moved to the city of the lesser-known bank. The few executives that were retained from the well-known bank had their offices moved to the city of the lesser-known bank.

So, less of a take-over by the well-known bank and more of one by the lesser-known bank, and obviously not much of a "merger of equals," either.
I lived thru much of the telecom reorgs of the ‘90s at the same time I was working on my MBA. The text books said that early on, there are many very public announcements of placement of acquired Corp execs in the “new company”. And within 5 years, they and the entire middle mgmt structure of the acquired company are gone. And that’s EXACTLY how it worked out. These high level placements are just for show to smooth digestion of the acquired company.
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