The end of an era

[tincanary]

Well everybody, looks like Abu is laying off 48 of 70 employees in Svangsta.  It wouldn't surprise me if they board up the building here in the near future.  Get your parts while you can and make sure to get enough to have healthy back stock.  What a shame and sad to see it take a turn this way.  Article is in Swedish, use Google translate.

https://www.svt.se/nyheter/lokalt/blekinge/fabrik-i-svangsta-lagger-storvarsel

[thorhammer]

THIS BLOWS!!! Parts are already ridiculous; I just buy reels.

[foakes]

Well, unfortunately —-

That likely just doubled the value of my 21 large numbered bins of ABU vintage parts.

So now instead of selling 3 parts a year —- might be able to get rid of 5-6.

Best, Fred

[Keta]

Hopefully Pure Fishing will continue supplying parts

[alantani]

saw this.

[foakes]

A shame but not surprising.

The only surprise is that they held on this long.

A drowning man will grab for anything that looks like a lifeline —- not concerned at the time that the "lifeline" will eventually become a noose.

Same has happened with 99% of tackle manufacturers.

Best, Fred

[Gfish]

Well stated, Fred. Pure Fishing going down by pure ________(term too political to post).

[tincanary]

I don't know if I'd be so quick to blame Pure Fishing as I would their parent company, Sycamore Partners.  Sycamore Partners is pretty notorious for buying up businesses and selling their assets and reorganizing, or worse yet, bankrupting them.  Pure Fishing has owned Abu since 1995 and the company was largely successful for some years after.  We still saw innovation under Pure Fishing like the Morrum and Suveran, the small 1600C/2600C Ambassadeur getting a thumb bar, the Magtrax brake on the Ambassaduer, etc.  When Mamiya, the Japanese distributor for Abu Garcia went bankrupt in 2000, that's when the downfall started.  Pure Fishing didn't own Mamiya, but swooped in and 'saved' them during bankruptcy, forming Pure Fishing Japan.  There's another famous brand under the Pure Fishing umbrella here, but not in Japan and they continue to do very well.  If you are wondering, it's Fenwick.  Fenwick of Japan is owned by Tiemco (pronounced Timco) and they make some truly outstanding rods, even from Fenglass and they're far and away better than anything we can get here. 

[Gfish]

Ok. Since you detailed it, I can fill in the blank; capitalism.

[Midway Tommy]

The private equity vultures  are the main culprit. They ruined Cabela's and, the Bass Pro acquisition made it even worse.

There are a few manufacturers making aftermarket ABU parts. Hopefully that will continue, but it's a sad, sad time for ABU Sweden. 

[Walleye Guy]

"All I want for Christmas is..." for this to not be true. 

[oc1]

book

[Ron Jones]

I am not a fan of Private Equity firms. Every era has its new monster that eventually needs to be reigned in. This has nothing to do with the financial model and everything to do with humans being humans, and financially gifted humans being financially gifted humans.

[jgp12000]

In other words,the love of money supersedes the love of the fisherman

[DougK]

I don't know if I'd be so quick to blame Pure Fishing as I would their parent company, Sycamore Partners.  Sycamore Partners is pretty notorious for buying up businesses and selling their assets and reorganizing, or worse yet, bankrupting them.  Pure Fishing has owned Abu since 1995 and the company was largely successful for some years after.  We still saw innovation under Pure Fishing like the Morrum and Suveran, the small 1600C/2600C Ambassadeur getting a thumb bar, the Magtrax brake on the Ambassaduer, etc. 

+1
private equity, ruining companies and lives every day..
that $750m of debt is owed to Sycamore, it's not real debt incurred by business problems, it's just private equity stripping the companies of assets.

The factory has been posting on Facebook, pictures of the last few runs of Ambassadeurs made.. it's very sad.