Hudson bites the dust

[jack crab]

I wonder though, how does a company like Hudson get so much in loans? Could it have been through misrepresenting themselves, are the lenders guilty of not doing their homework, or could it all have been legit?

It may not be lenders. Hudson goes to Acme Anodizing and asks for a $1 million of anodizing on certain parts. Acme does it, then invoices Hudson. Hudson fails to pay. No money changed hands but it will be listed in bankruptcy as a debt to discharge.

Meanwhile, Acme incurred materiel and labor costs to do the anodizing. Maybe they make the next payroll or maybe they don't.

Everyone is "good for it" until they aren't.

[markm]

I thought I'd read that some of their suppliers screwed them on out of spec parts. I never got to shoot the pistol, but I really wanted to. It looked promising to me. If they get cheap on the used market, I'll scoop one up for sure.

[WickedWillis]

I don't feel sorry for those who made the poor business decisions, but I do feel sorry for those affected by those decisions regardless if they were employees of Hudson or if they are owed money by Hudson.

Exactly. We are talking about people in the industry we support fully, losing their jobs and livelihoods.

It may not be lenders. Hudson goes to Acme Anodizing and asks for a $1 million of anodizing on certain parts. Acme does it, then invoices Hudson. Hudson fails to pay. No money changed hands but it will be listed in bankruptcy as a debt to discharge.

Meanwhile, Acme incurred materiel and labor costs to do the anodizing. Maybe they make the next payroll or maybe they don't.

Everyone is "good for it" until they aren't.

How do you not get a substantial down on that large of a commitment though? I understand making a business relationship, but there needs to be some CYA in place at ACME.

[Esq.]

Nothing I was interested in but one less option now.....

[RHINOWSO]

It may not be lenders. Hudson goes to Acme Anodizing and asks for a $1 million of anodizing on certain parts. Acme does it, then invoices Hudson. Hudson fails to pay. No money changed hands but it will be listed in bankruptcy as a debt to discharge.

Meanwhile, Acme incurred materiel and labor costs to do the anodizing. Maybe they make the next payroll or maybe they don't.

Everyone is "good for it" until they aren't.

Yeah, that is partly on ACME's sales / financial folks for extending Hudson that much credit terms.

I would figure after the first and second month of failing to follow through, you'd cut them off at the knees - which is likely what happened (eventually), but still.

At the same time, if ACME is a solid company (financially), they can turn that $1M 'loss' into some sort of tax loss / write off- and considering it likely only cost them 50% of that (at most) to make, they won't take a bath on all of it. They'll come out behind, but likely substantially less than $1M net loss.

[Huski9201]

Just got a email from Grabagun. They are selling the H9 for $599. I wonder how many people previously bought these. And I wonder who will buy them now.


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[Don Quijote]

I wonder though, how does a company like Hudson get so much in loans? Could it have been through misrepresenting themselves, are the lenders guilty of not doing their homework, or could it all have been legit?

How did that weird-eyed bitch run up Teranos' valuation into the billions with nothing to show for it?

ETA: someone beat me to it but a significant portion of a bankrupt manufacturing business' liabilities are unpaid purchase orders for materials and processes.

[Don Quijote]

Just got a email from Grabagun. They are selling the H9 for $599. I wonder how many people previously bought these. And I wonder who will buy them now.


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Yeah the value of those things is rapidly circling the drain.

[The Dumb Gun Collector]

$599??? Jesus, it is worth that as a curio

[Arik]

$599??? Jesus, it is worth that as a curio

Yep. For around $500 I'd buy one for a future C&R