Novis Marine Sale

[mr_lucky]

Just ran across news at the Cruising World web site that NM was being sold to a private equity firm. I don't have enough posts to link to the article, but you can find it on the first page of the site if you're interested.

No details on the transaction were given, but it looks like Ross (current CEO) is leaving, and Jackett (COO/ch. designer) is staying for now. Probably both outcomes are best, at least for the short term and the sake of continuity. Reading between the lines, the press release's emphasis on the new owners' substantial investment in the company suggests that the various QA/warranty issues that have cropped up, and associated the bad publicity they have generated, have taken their toll, cash flow-wise.

Assuming a cash crunch was the major reason for the sale, it seems the whole deal could have been avoided if Ross/Jackett had promptly taken a few simple steps: communicate with owners and the public in a non-confrontational and cooperative manner, and work actively to improve NM's service and warranty support process/reputation. Filing countersuits and adopting adversarial positions may make sense to a lawyer like Ross, but makes no sense on a business level.

Anyway, here's hoping for some positive action from the new owners. If they can generate favorable perceptions of this company's products and after-sale support, they should be well on their way to renewed success.

EDITED TO POST THE LINK BY CAM:
http://www.cruisingworld.com/boats-a...000007788.html

[sailingdog]

Unfortunately, common sense and business seem to have very little to do with each other nowadays... government bailouts... unethical behavior... outright fraud... all seem to more par for the course... Openness and honesty have gone by the wayside in most companies.

[camaraderie]

I notice the release says the new group will be assuming the assets of Novis.
Does that mean they will NOT be assuming the liabilities? Any lawyers around??
Where does this leave current Tartan and C&C Owners with boats under warranty.
No mention of it on the Tartan Site!

[Pamlicotraveler]

Call Mr J. Hunter Banbury with all of your warranty issues

[Jonesee]

Cam, your assumption is correct. If it is an asset purchase, the new owners did not take responsibility for any of the previous corporation's obligations. They simply bought the hard assets and intellectual property. The old corporation will continue to be liable for warranty issues and the like. If the previous owners/corporation have not, or do not have the ability to fund future obligations they may bankrupt the original corporation. In a buy-sell however anything can be written into it. Although unlikely, the new owners may agree to accept specific obligations (warranty) of the previous corporation. I hope this is the case.

[camaraderie]

Thanks Jonesee...the wording struck me as unusual. Guess we'll have to wait for further word & hope owners aren't left holding the bag.

[T37Chef]

Thanks for finding this. IMO the way this new management handles the claims will determine its fate, lets hope they do the right thing! If the claims are warranted?

[T34C]

It is also possible that this sale was one of the reasons for any lack of support that owners were receiving. If the sale has been in a due diligance phase for a while, they may not have wanted to take on any big warranty/recall issues that may have affected the price of the company. I've seen similar issues with other companies.

[sailingdog]

If the new company doesn't honor the obligations of the old corporation and the problems that previous buyers of the Tartan and C&C boat brands have had in recent years, I seriously doubt that they're going to gain a whole lot from having bought the brand names in question. Without some accountability and some corporate responsibility, the two brands are probably going to tank. Bad press like that is really hard to get around.

[T34C]

Originally Posted by halekai36

...They sued the owners of boats that had problems and who, out of desperation, took their story to the boating community because Tartan (the company) basically stiffed them! Here's a blog about experiences with hulls splitting and how the company treated the owners... Of course bear in mid that the real meat, photos and evidence has been taken down by court order!!!...

Unfortunatly there are two things out of order in your description. The owners plastered comments and commentary all over the internet, THEN, they got sued. IMHO Those same owners could have taken their issues public in the same forums they did, but with less accusitory language and tone and they would never have been sued, certainly not successfully. When several members of this site, myself included, advised them that they may want to tone it down slightly or they may end up in court, we were accused of taking the side of corporate america and wanting to suppress their story.

I feel for the owners position. I would be equally outraged if I was handled the same way by a company I had just spent that much money with. However, with the way they handled themselves, frankly they had it coming.