Fender cancels its IPO

[shreddermon]

http://bottomline.msnbc.msn.com/_news/2012/07/20/12857357-fender-goes-off-key-cancels-its-ipo?lite

I guess they didn't like the price quotes they were getting. ...Too bad, that's why I would've bought some. Oh well, they'll probably be back when the market settles down.

[Whoopu2]

Whew.

If FMIC ever does succeed in going public, it will be very bad news I'm afraid. I would expect quality drops across the board.

[Sharkfin]

Funny, I was thinking about FMIC going public earlier today and wondered how that was going.

[Sephiroth]

I am kinda glad. I didn't want to see it become a subsidiary of ESP or some other shit, or at least for such companies to buy enough shares to be able to make sure FMIC/Jackson doesn't do shit the next time they wish to "borrow" a design

[xenophobe]

I am kinda glad. I didn't want to see it become a subsidiary of ESP or some other shit, or at least for such companies to buy enough shares to be able to make sure FMIC/Jackson doesn't do shit the next time they wish to "borrow" a design

At this point, I don't see Jackson getting any worse. Most of the soul of what made Jackson great is gone, IMO. I'd much rather have the "Mothership" back, as much as stuff was screwed up back then and as inconsistent as QC was, I think they often built a better guitar. I honestly haven't played enough new USAs to make an unbiased statement, but I can tell you I prefer late 80's and mid 90's custom the best. And at least Kevin kept the website somewhat updated. And I miss the custom shop gallery.

[coloradoman25]

I have had a handful of sl2h's over the years to keep and flip I have 2 in my collection as I have said before there are way more turds than gems. I only offer the good ones here so if ya see me listing one on the bay and not here, there is a reason.

[Sephiroth]

I have had a handful of sl2h's over the years to keep and flip I have 2 in my collection as I have said before there are way more turds than gems. I only offer the good ones here so if ya see me listing one on the bay and not here, there is a reason.

S they're like Les Pauls now? I guess Jackson has reached Gibson's level of prestige after all.

[YetAnotherOne]

Aside from brand loyalty or the novelty of owning a slice I can't really understand why anyone would invest in Fender's IPO. From the outside looking in it appears that the company is a financial train wreck: http://www.sec.gov/Archives/edgar/da...htm#tx293340_8.

[shreddermon]

Fender and Gibson are the musical instrument market equivalent of "too big to fail". LOL

[YetAnotherOne]

Fender and Gibson are the musical instrument market equivalent of "too big to fail". LOL

Wanna bet?

[xenophobe]

Aside from brand loyalty or the novelty of owning a slice I can't really understand why anyone would invest in Fender's IPO. From the outside looking in it appears that the company is a financial train wreck: http://www.sec.gov/Archives/edgar/da...htm#tx293340_8.

That is looking grim. So much debt and so little in profit. Their operating expenses are nearly 120m? Time to fire some upper management...

[Sephiroth]

Aside from brand loyalty or the novelty of owning a slice I can't really understand why anyone would invest in Fender's IPO. From the outside looking in it appears that the company is a financial train wreck: http://www.sec.gov/Archives/edgar/da...htm#tx293340_8.

But the thing is they're still selling and every hipster has to have a Fender strat. So beats the shit out of me for why they're losing money.

[xenophobe]

Judging by the new "charvel" I bought, Fender is getting desperate for dealers. They still have bogus minimum order requirements for dealers, so bad that none of them want to stock them. There were 6 new "charvels" at Guitar Showcase in San Jose/Campbell/whatever. They were all consignment pieces left by the fender rep. Since when does a major guitar manufacturer have to leave new guitars as consignment pieces?

The new "charvels" are a mixed bag. They're just as likely to fail as they are succeed. They took some chances. Horrible build quality, but really decent players. $500 beginner's guitars.

[Nightbat]

That is looking grim. So much debt and so little in profit. Their operating expenses are nearly 120m? Time to fire some upper management...

Oohh that's comedy gold

[BYeh1]

That is looking grim. So much debt and so little in profit. Their operating expenses are nearly 120m? Time to fire some upper management...

You're right, great name but shitty overleveraged business that's been milked dry by their private equity owners. Fender was LBO'd years ago by Weston Presidio (in SF), same private equity firm that owns Guitar Center (in fact they brought in CEO Larry Thomas, former CEO of GC). Margins are horrible, especially for one of the 2 best brands in the business. Been watching this deal for years, could have bought Fender for nothing in the early 90s when they were in trouble post-CBS but didn't do anything about it, recently looked at it when the investment bankers were shopping it around, but passed on it due to unrealistic valuation expectations.

Be glad you didn't participate in the IPO, it would've tanked in this market.

WP is hoping to come back when the market improves, think they'll be waiting a while...