For some time now, there have been whispers coming out of Procaps that have augured badly for its future.
The problem seems to be one of mismanagement or to be more accurate, a guy called rob molyneux who's allegedly in charge over there in Canada.
I have heard a few distasteful things concerning this man molyneux, he is apparently irrational, rude and boorish; not exactly the required qualities you need when looking to turn the fortunes around for a stuggling company in 'struggling' times.
Enter Mr Bottom Line
Bottom line managers are basically individuals who negotiate their way thru the business minefield relying on the facts & figures a balance sheet throws up as any finanical year progresses.
Generally speaking, there are two types of bottom-line merchants who take over companies [in trouble]; there are those who have some affinity to the marketplace they find themselves in and there are others who have no such affinity and look solely to the balance sheet.
It is now fashionable [out of need more than anything] for investment funds to own paintball companies, in fact, a lot of the biggest paintball companies such as Kee, Procaps and Tippman are all owned and controlled by such investment fund management.
And it's all well and good having this type of thinking running these big companies but somewhere along the line, if you are continually looking at the balance sheet, you have to take stock of the actual environment you are in and it is the marriage of these combined data that allows you to best run that company.
Paintball is not a business you can run successfully unless you have some degree of personal approach to both employees and just as importantly to your customers.
Paintball is parochial by nature and responds positively to the personal touch even though the sheer size of business does imply a less personal touch is appropriate.
rob molyneux seems to redefine what blinkered management means, he has recently been responsible for the severance of the services of Opie Thomas and Paul Satler from Procaps, basically he has just sacked them.
OPie's a friend of mine and I know him well enough to know, a harder working [and more loyal] individual you could not find and it's incredulous molyneux has sought to let Opie go.
I do not know Paul anywhere near as well as I know Opie but I hear he's apparently a similar sort of guy.
The point here is, paintball is an industry that thrives on the personal touch, and there is no greater tragic irony in paintball than acknowledging Richmond Italia created and grew Procaps on just such a personal approach.
Richmond got his ass out there in the beginning of Procaps and met people, cultivating relationships and trust ... I think he started with something like 4 machines and rapidly expanded that operation to a point where he had over 20 machines and was able to sell it for an alleged $110 million.
I know for a FACT, there is no way Procaps could have grown that fast without Richmond adopting that personal philosophy in the beginning and also maintaining it thru to its eventual sale.
And now?
The bottom line approach, as best exampled by some ludicrous management decisions this guy molyneux has made is gonna see Procaps struggling to resist the invitation for one last dance of death .... maybe it's time for history to repeat itself before it's too late .... R?
Last edited by Robbo; 07-01-2010 at 03:42 PM.
One of this site’s rules is we have to limit the number of lines our sig takes up;And so, I have to make damned sure that what I write here is exactly what I need to say the most.It is therefore incumbent upon me to let everybody know that jeff abbott is a thief, a liar and a scumbag.I apologise to everybody for the nature of such a revelation but it’s the absolute truth.
I hope this isnt a sign of things to come! I know Smart Parts was a totally different set of circumstances and the press release of a reopening in February looks promising if not questionable but it is beginning to look like a collapse from the top with the big guys falling first.
Hopefully a consortium type take over will aid procaps' fortunes or indeed a re-buy from Ricmond will invigorate the company (what about GI in this situation) and all will be well.
I can only hope these pillars of the industry dont dissapear as that would be a bad sign of things to come.
Why are Pro Caps in trouble?
Because they are a paintball company.Originally Posted by jumbaleo
Its a serious question, I just wanted to know why they are in trouble, if there was a specific reason or is it just the general state of the wider economy.
I thought Procaps pretty much had a monopoly on supplying paint?
I'll say this for the guy, he has a super-cool last name.
Because they handed out terms to people who also handed out terms, and when those guys didn't get paid, nor did Procaps.
Forgive me for not really understanding what you mean, but are you saying Procaps distributors haven't paid Procaps for the paint Procaps have supplied?
Yes, and you're forgiven.
'Terms' refers to terms of sale, meaning that you give a customer say 21 days to pay on invoice of good recieved. If someone can't pay you are then looking at cash flow issues. Nasty.
Buy outs by Investment firms is nothing new, their role is to generally buy a sick company at a knockdown price, fix it up and sell it for a profit. I hate to say it but that is the way it goes, touchy feely doesn't cut it when you have shareholders or investors who want their Profit on Return.
Thanks for the forgiveness lol..
How can distributers get away with not paying, and to the point that it nearly bankrupts a company?
Are there not warning signs that can be seen before things get to the point that it shuts a company down?
UCZ - PaintballWarehouse
Mate, loads of companies do it, often the really big, reputable ones...
They'll make a deal on terms, then deliberately forget to pay on the correct date. And of course if the company doesn't get paid, people that it owes money to won't get any either.
All relates to the liquidity of a business, and it sounds like Procaps are having liquidity issues...
Apparently (according to industry gossip) the European distributors are some of the worst.
Thanks for the explanation.
It sounds like theft, wouldn't the ''terms'' be legally binding so therefore the distributors are required by law to pay the supplier / manufacturer.
How can they get away with it to the point that it potentially shuts a company down? Doesn't credit control come into play?
It's called 'business' .... and yes, I know what you are gonna come back with but I'm afraid the word business changes meaning dependent upon the circumstances in which it finds itself.
I mean, when the mafia had to whack some poor schmuck, they would invariably justify it as a business call, and so, the word is quite loose in terms of its meaning.
One mob justify assassinations, another mob justify non payment, two sides of the same business coin really ....
As for warning signs?
Of course there were, especially when there is a recession going on, and also coupled with a specific [paintball] downturn in your own market independent of any wider recession.
The problem is, when do you draw the line?
Is it not better to get money paid 90 days late than to decline their business and have no money on time?
It's a tough time all round at the moment for everybody involved in the paintball industry but things ain't made any easier when idiots like this molyneux come on board strutting his stuff.
The paintball industry started off [and developed] in the hands of private individuals such as Billy and Adam Gardner [Smart Parts], Dave Youngblood [Dye] and Richmond Italia [Procaps] and it's no accident these companies grew under that ownership regime.
I will concede these guys also had the best of times in that their companies growth wasn't all due to the way they ran these companies because paintball at that time, was on the front end of a massive growth curve and anybody with half a brain could have made money; nevertheless, all those guys love this sport [and still do] and it seems that type of ownership is now what's needed to save our industry.
It's ironic really to see this turnaround in fortunes but we are stuck with it now and have to react accordingly and appropriately; if we do not, and allow bottom line buffoons such as molyneux to have too much of a say in the way our industry evolves, or rather devolves, then things look rather gloomy for the next 5 years or so.
One of this site’s rules is we have to limit the number of lines our sig takes up;And so, I have to make damned sure that what I write here is exactly what I need to say the most.It is therefore incumbent upon me to let everybody know that jeff abbott is a thief, a liar and a scumbag.I apologise to everybody for the nature of such a revelation but it’s the absolute truth.
Robbo, it may, just may help them also by having someone come in who is prepared to build the company up again. It may solve their various issues and then allow a paintballer to repurchase the company once it is more viable.
Nice thinking, but businesses generally go from Privately owned to Publicly owned, seldom the other way around...
130 Octane Aviation Grade
Though when the distributors are waiting for money from their customers and the supplier changes the terms of supply, before the distributors have chance to agree the same terms with their customers then the distributors can be made to look like the bad guys. Such changes in a supply change take time and are best implemented from the bottom up rather than the top down to become effective, otherwise, somebody in the chain is going to be left in the creek without a canoe, let alone a paddle.
Missy, while I respect that the information you have may come from a close source, it might be a little one-sided.
From what I understand the two individuals alluded to in the first post may have issues apart from just the loss of their positions that have yet to be resolved.
I think the only 'issues' they had, as was recently told to me by an inside source was, 'neither of them had molyneux's dik in thier mouth like some other people there' .... obviously not a literal observation but I get his point.
One of this site’s rules is we have to limit the number of lines our sig takes up;And so, I have to make damned sure that what I write here is exactly what I need to say the most.It is therefore incumbent upon me to let everybody know that jeff abbott is a thief, a liar and a scumbag.I apologise to everybody for the nature of such a revelation but it’s the absolute truth.
130 Octane Aviation Grade
Pete, it may be thus, however, I understand that severance may not have been settled in a manner satisfactory to all parties.
I have little doubt this may be the case Pete .....
One of this site’s rules is we have to limit the number of lines our sig takes up;And so, I have to make damned sure that what I write here is exactly what I need to say the most.It is therefore incumbent upon me to let everybody know that jeff abbott is a thief, a liar and a scumbag.I apologise to everybody for the nature of such a revelation but it’s the absolute truth.
Thats Pete's scoop, not mine. I know both those guys well, and Opie very well. They are both 'company men' whom I respect. Opie can also party with the best of 'em, which earns him extra points. Maybe he can get the hell out of Canada now, and trust me, at this time of year he will be thankful for that.
130 Octane Aviation Grade
While we are on the subject, there are, apparently, others less than happy with the remuneration that they have received since the changes at the top.
I'm sure you too can attest to how much the corporate face of Procaps has changed in the last few months.
Pete also hinted elsewhere at an individual holding some pretty strong cards in the hand that is European paintball distributorship, lets wait and see who may, or may not, get rivered in this game.
From what I hear its not remuneration per say but what some of the staff are owed in back payments
Wasn't procaps in trouble before they got taken over? And that was why they went to investment bankers in the first place.
Procaps problems go back to 2004. They had huge financial and legal issues with NPF who were their sole distributors, then they over reached with procaps direct as sales downturned.
Procaps issues are quite long running and nothing new in paintball. Didn't procaps take over diablo for exactly the same reasons?
"I remember when all these inflatables were trees"
My Feedback Thread
Procaps never took over Diablo - they created and launched Diablo. Then after few years someone came along and said "hey I have a trade brand in paintball called Diablo and I'm gonna take you to the cleaners!!" (Maybe a slight exaggeration there but you get the idea)
Between Procaps and NPS a deal was struck to give 100% distribution of Procaps products to NPS and the brand Diablo. Under the agreement Dr Axxus was created leading to Draxxus and DXS branding.
The financial trouble you possibly refer to is when Procaps & NPS split under issues with alleged unpaid bills -that's when Richmond sold a share to the Investment bank, to raise the capital to rebuild the company. Which he did very succesfully with the help of their distribution network.
Procaps recent struggle is partly to do with the economic climate but from what I hear primarilly because of policy changes which mirror what Pete was saying about looking only at improving the bottom line without worrying what negative effect you have elsewhere - be that quality or customer perception / loyalty..
Lots of things happen in life that can be attributed to chance or circumstance but very things in the industry arena can be so easily written off.
Generally speaking, there are always gonna be reasons for why people do certain things or say certain things, the trick is, to recognize what's going on, or at least try to.
Now I ain't no business expert but I got a brain in my head and I been around a long time which gives me a fair amount of experience of the way people act.
Whenever people say something, either verbally or in print [or in email] that you know is wrong and at the same time, you also know the individuals behind that false statement also know it's wrong, then you can generally bet yer bottom dollar, something's afoot .... a smell starts to emanate from around that camp.
An email was recently sent out from Procaps to all its distributors telling them their terms and conditions were all up for review; and as part of that email, it was also stated there were no existing contracts between said distributors and Procaps ...... this is the statement that stinks because it is basically untrue ... and Procaps know it is ...so why state it?
Good question ....... either the Procaps people have become delusional and indulging themselves in fiction or there is some purpose in stating there are no existing distribution contracts [when in fact, there are] ...
But what purpose could there possibly be in stating a lie?
Hmmm.....well, to me, it kinda suggests they want someone else to see that email and believe there are no contracts ..
But what could possibly be the point in that?
Hmmm..... I'm no super sleuth but the only way you can gain anything out of this is if this 'other' person[s] believe there are no distribution contracts then it looks as though the way is clear to maybe take over that distribution ......
Seems a short term mechanism to me and I'm not sure how it pans out when the consequent law suits come thick and fast but I'm sure the Procaps management team must have worked all that out ..... you'd think so anyway ....
The next question is, who on earth could be in the frame for fooling?
I mean, who are they trying to fool here?
The clue is in the sheer size of that distribution ... who the hell could handle it???
Is someone trying to clear the decks before selling?
or ... is someone trying to clear the decks to hand over distribution?
Hmmmm ....... I got my ideas ...... you guys got any, nooby noob, Missy??
PS Nooby noob, decloak please, or at least pm me ....
Last edited by Robbo; 08-01-2010 at 01:40 PM.
One of this site’s rules is we have to limit the number of lines our sig takes up;And so, I have to make damned sure that what I write here is exactly what I need to say the most.It is therefore incumbent upon me to let everybody know that jeff abbott is a thief, a liar and a scumbag.I apologise to everybody for the nature of such a revelation but it’s the absolute truth.
Nooby, yes you are right I remember now, there was some weird gun NPS had been buying in and selling as a Diablo and so they grabbed Diablo off Procaps.
I'm sure there was some company procaps swallowed up but my mind doesn't remember things the way it used to and often makes things up to confuse me.
"I remember when all these inflatables were trees"
My Feedback Thread
Procaps swallowed American Paintball Supply
Gino (NPS) trademarked a pump gun back in the day, called the Diablo, and then sued Procaps when they used that name as their brand years later.
Thanks Missy-Q for providing my missing brain power.
"I remember when all these inflatables were trees"
My Feedback Thread
Posting Permissions
View Profile
View Forum Posts
View Blog Entries
Visit Homepage
View Articles
Reply With Quote
Bookmarks