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Another US tool company bites the dust.

Gordon B. Clarke said:
Any idea as to the reason?
Click to expand...

No idea at this point. Frankly I'm just shocked.
It is a very competitive area but they were good.
Big advertising which is not cheap but they were used by many distributors.
Some pressure from imports like ZCC but they lived off of specials.
Sort of hoping someone here might have dealings with them and know part of the story.
They were at the 40+ year mark which is a hard time for many companies as the management changes.
Bob
 
A look at their list of creditors and accounts receivable should show if they were stiffed by a firm on a large order.
 
Looks like they're just walking away from the company -- the GKI Tool website was abandoned 12/3/2016. That's less likely to happen if there's a new owner hoping to reorganize the company.

Bob -- could it be that the company was privately owned, the owners ready for retirement and too tired to put tons of time into it, and the combination of debts and forward prospects to bleak for anything more than a sale of assets? Many companies don't survive their founders. Even fewer survive their sons and daughters.
 
GKI may have had a big customer go bankrupt, or could have gotten severely stiffed.

Unless they were heavy in automotive, there's not a lot of Midwest manufacturing that is exactly booming. Could have been slow sales as well..


ToolCat Greg
 
100 small companies just got screwed

Remember: "sue when its overdue" or end up like the "100-199" creditors of GKI who are now going to lose all their money. I bet some of them had debts a year old.
 
PeteM said:
Many companies don't survive their founders. Even fewer survive their sons and daughters.
Click to expand...

How very true. Lego is now into fourth generation but the great grandson of the founder has just stepped aside as chairman of the board and turned the reins over to the guy who is responsible for Lego's huge success the past decade.

I'm guessing an important part of success is knowing when to step aside.

Bali Padda new CEO - News Room - About Us LEGO.com

Lego Success Built on Open Innovation - Open Innovation success stories
 
fusker said:
AFAIR the local newspapers attributed LEGO's success to a large capital influx from Disney. Some of us danes regret the new Lego style.
Oh well, better fed than dead.
fusker
Click to expand...

What local papers and what Disney capital influx?

The "old" Lego style is still there but there are just so many new variations.

Google

I know many adults that just love Lego Technic. Yes me too :)

Google

You don't get to be the largest toy manufacturer in the world by standing still.

Google
 
Miguels244 said:
But trump saved carrier...?
Click to expand...

I bet Pence had more to do with that than Trump did. This happened in Indiana, where Pence is still the state governor, until Jan.20.

Again, why didn't the current sitting president save those jobs at GKI INC? Too busy vacationing and playing golf in HI?
 
Gewehr 98 said:
I bet Pence had more to do with that than Trump did. This happened in Indiana, where Pence is still the state governor, until Jan.20.

Again, why didn't the current sitting president save those jobs at GKI INC? Too busy vacationing and playing golf in HI?
Click to expand...
Perhaps not willing to take credit for a tax giveaway from a state coffer?
 
Gewehr 98 said:
I bet Pence had more to do with that than Trump did. This happened in Indiana, where Pence is still the state governor, until Jan.20.

Again, why didn't the current sitting president save those jobs at GKI INC? Too busy vacationing and playing golf in HI?
Click to expand...

I don't always get the logic of some.

Some detest "government" and want as little meddling as possible. You OTOH seem to be advocating that you think a president should get involved in deciding which business should be saved/helped. You seem to have no idea as to what the job as president entails. Bet you pray to God regularly that you win the lottery. You probably think He doesn't have anything better to do.

One thing is trying to help an industry such as automobile manufacturing, ship building, aircraft industry etc. where all are helped on equal terms. Being "sugar daddy" to one single company is in fact nepotism and I believe illegal. Even the governor of a state should be very cautious about helping any specific company even when job loss is involved. I'm not saying nothing should be done but it does require serious thought as to future implications. If I was a competitor I'd be PO to put it mildly if I felt help was biased.
 
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