OCC: Waaah

[ducatiz]

Orange County Choppers' HQ faces foreclosure
http://www.recordonline.com/apps/pbcs.dll/article?AID=/20101118/BIZ/11180319/-1/SITEMAP

[Rob Hilding]

Maybe they could make the place a giant indoor "Flea Market" for bolt-on motorcycle parts

[Speedbag]

Gee, didn't see that coming. 

How the hell did they think that the market for such custom bikes would continue on forever? 

I would have kept slaving in the original building and made it work, raking in the dough while I could.....

[Spidey]

If they get foreclosed on and end up lookin' for a new place, are they gonna move the show from Discovery to HGTV?

[ducatiz]

lol

[gregrnel]

Piss-poor cash management and decision making, not surprising coming from the meat-heads behind OCC.

[justinrhenry]

as stated in  the article, this has nothing to do with his ability to pay and everything to do with him trying to get a loan modification.  in that respect he's doing what most other people in the country have done/are trying to do.   

[muskrat]

Idiot.  Why in the hell did they need a $15 million dollar building? GE is just as dumb in this thinking a luxury item would prevail when disposable income falls. 

[Fergus]

has nothing to do with his ability to pay and everything to do with him trying to get a loan modification.

Can you get a loan modification if you're fully able to pay?

Maybe he's trying to free up some $$ to pay Jr his 20%...

[mitt]

GE is just as dumb in this thinking a luxury item would prevail when disposable income falls. 

You might be surprised at how some of the "toy" companies have done during the recession:


PII

http://www.wolframalpha.com/input/?i=polaris+industries

[The Architect]

My disdain for GE Financing will skew my opinion on this highly important matter. 

This is a great situation.

OCC: GE, we need to borrow a lot of money.

GE: Sounds like a good business plan.  Here's your cash.

Real estate market goes to crap.

OCC: The the building isn't worth what it was so adjust our loan.

GE: What?


Instead of making mortgage payment OCC should spend the payment money on lobbyist.  They may be able to get a bail out for chopper manufacturers. 

[muskrat]

You might be surprised at how some of the "toy" companies have done during the recession:


PII

http://www.wolframalpha.com/input/?i=polaris+industries

there are many that have done well of course but OCC is not an affordable brand for most.  Either way, I would have done what was suggested above.  Live in the old shop and bank roll.

[psycledelic]

Maybe Paul Jr. Designs are puttin' the whoopin' on them and they don't want to admit it.  I know, I know, sounds good though.

[Howie]

My disdain for GE Financing will skew my opinion on this highly important matter. 

This is a great situation.

OCC: GE, we need to borrow a lot of money.

GE: Sounds like a good business plan.  Here's your cash.

Real estate market goes to crap.

OCC: The the building isn't worth what it was so adjust our loan.

GE: What?


Instead of making mortgage payment OCC should spend the payment money on lobbyist.  They may be able to get a bail out for chopper manufacturers. 

Could be, since I'm sure GE doesn't want to be stuck holding this huge property with a negative equity value in the area of about 5 million.  Could be they just want to bail.  When my Uncle passed away my Aunt was left with a huge payment book on a huge boat he bought.  Resale value was thousands less than the loan.  The boat was in his corporate name.  After speaking to the accountant she let the bank have it.  Could be OCC is belly up and the Tietels are bailing.  Fact is we can only speculate.

[Slide Panda]

Crux of the problem seems to me to be a poor decision on OCC side.

They want a loan modification. Which at this time is pretty normal, interest rates are way down. Cool that makes sense to me.

Problem is when they started trying to strong arm the lender by not paying. Yeah... not going to work. Strong arm tactics won't work when you've got no strength. So assuming they have the money to have paid that missed then it's just a case stupid decision making.... not to mention building a hugely expensive building that, I'm sure, cost way more than what the business needed...

I dunno. I just don't get it anyways. From day one I've never understood the draw that they seem to have over people. None of their stuff is so fantastic or original that I could fathom the cost. There's plenty of other custom bike makers out there with more interesting products IMO