Good Bye Fountain, ProLine, Donzi and Baja....

[Philster]

Several more brands in severe danger of biting the dust. Won't be at Fort Lauderdale show and have plans only to finish current builds and honor warranties until further notice. And that is the good news...

The Capital Group that holds them wants to get them back on their feet, but they are pretty much on the brink of the brink as a ruling against Fountain that was essential to these companies surviving the interim plan (finish current builds and honor warranties) has essentially doomed them.

http://www.boatingindustry.com/news/2011/10/24/fountain-powerboats-granted-temporary-receiver/

Other details to piece to together, but this is looking like the end to a desperate fight to hold on.

Ronald L. Glass and the GlassRatner Advisory and Capitol Group were named as the temporary receiver in the case and authorized ?to take immediate possession of, hold and secure all capital stock and membership interests in the Borrower (Fountain) Defendants, together with all assets of the Borrower Defendants, including, without limitation, all real property, personal property and business records. Borrower Defendants, each of their respective officers, directors and representatives, and all other affiliates of Borrower Defendants, are hereby ordered immediately to surrender to the Receiver the possession, use, occupancy and control of the collateral.?

 

[zagger]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

WOW, I knew things were bad but I did not know such power houses were that deep in financial trouble.

 

[sasto]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Reggie Fountain once said "If I ever win the lottery, I can continue building boats for another year or two"

I once worked for Donzi at Bradenton, FL for 3 days........They laid me off along with nearly 50 others.

They come and they go!

 

[robert graham]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

I guess they'll go the way of Deusenberg, Packard, Oldsmobile, etc., etc...It's hard to believe there's not enough filthy rich buyers to order new Fountain Go-Fast boats

 

[Philster]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Fewer choices hurt all of us. I like to have choices/diversity, etc. Donzi made more than just go-fasts as did Proline, but they're all eggs in the same financial basket now.

In QC's neck of the woods, the performance boat makers are smaller and more local. Maybe that is the key, or maybe they'll be tempted to take a bite of the market (but I guess the market is too small to be viable, given fears of gas prices).

They tried to diversify with center consoles, but it was too late and we have how many center console boat builders with tons of experience catering to the fishing crowd?

 

[V153]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Sometimes, being in the middle of the pack isn't a bad thing...

As the late great George Carlin said, "Try to stay in the middle of the second third ..."

 

[lakegeorge]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Maybe they need to move their operations to Columbia, LOL

 

[emilsr]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Baja was done when Brunswick dumped it on Fountain. Fountain was spending money they didn't have and the 2 went belly up together and wound up going to Liberty (Donzi and ProLine) right before they went broke. Tough times to be sure, but that isn't the first time major boat builders have gone under....and it won't be the last. Even the really high end builders (Outerlimits, Cigarette and others) are having a tough time, even though the rich are still rich.

The way to wind up with a million dollars in the boat industry is to start with ten million dollars.

 

[Home Cookin']

Re: Good Bye Fountain, ProLine, Donzi and Baja....

the receiver says he's going to try to revive them and make the spring boat shows. Fountain has been in bankruptcy since August 2009. Still doesn't look good.

WASHINGTON, N.C. ? Following the transitioning of assets for Pro-Line, Fountain, Baja and Donzi boat brands, temporary receiver Ronald Glass, a principal in GlassRatner Advisory & Capital Group, LLC, announced that he would get the companies back on track by focusing resources on managing the companies through the transition process.

 

[sasto]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Maybe they need to move their operations to Columbia, LOL

The designer/engineer of Donzi, Cigatette, Magnum, Formula and Aronow tried something like that. Don Aronow was gunned down on Thunder Row, Miami.

Don will always be remembered. OK, carry on!

 

[V153]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

The designer/engineer of Donzi, Cigatette, Magnum, Formula and Aronow tried something like that. Don Aronow was gunned down on Thunder Row, Miami.

Don will always be remembered. OK, carry on!

Fwiw I grew up in that area. Don Aronow was not in the business of making friends. He wanted to make money. He'd sell a company to some poor shmuck & then leave with all his best people. Then buy the company back at a 'distressed' price. Then sell it again.

Personally I believe he was killed for selling cops faster boats than drug dealers but what do I know. Think it was 7 or 8 .45ACP rounds to/through the head? Well, least he didn't suffer ...

Btw story goes one of Don's hoes called him "Donzie Baby" and that's how the company name began.

 

[sasto]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Personally I believe he was killed for selling cops faster boats than drug dealers but what do I know.

I believe the other way around.

 

[V153]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

I believe the other way around.

Hah! Yup. Makes more sense. Sorry I'm a lil dyslexic sometimes ...

 

[5150abf]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Having an investment banker run a boat company isn't gonna work to well, you need a boat guy to run them, Reggie was a huge boat guy, bad business guy when you really need both, it is too bad that they can't make it but with the economy the way it is I am not suprised.

 

[southkogs]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

Not to applaud the demise of any company (boats especially), but my hope in all of this is some of the smaller specialty builders can gain a little market share and we can see some fresh blood building some new styles. If we're going to lose a company like Fountain or Donzi, I hope we replace it with a couple of smaller - but quality - companies.

 

[haulnazz15]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

While it is unfortunate, Cigarette, et al are managing through it, and they make a much more expensive product (also with much better quality obviously). The rich are still spending their money, but the guys who buy new Fountain/Donzis are the ones who likely took a big hit in the financial crisis. The guys who can afford a Cigarette, weren't upper-middle class, and didn't likely lose their jobs.

 

[The Great Escape II]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

sasto,
In my previous job, we were approached to help out with movie about Don Aronow and it never made it past the negotiation stage. I think it would have been a great movie they had a good line up of actors.

 

[NSBCraig]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

The theory is really that Don got killed for selling the US Customs the blue thunder cats that operate out of Miami.

As for Fountain Reggie he made his company so big by playing games with financing, remember all those two page ads in the from a magazines? You could get a 39 Poker boat for next to nothing! It sure did sell a lot of boats though and got lots of people into boating.

It was really just a con like most finance.

Makes me think of something Sammy Hagar wrote in his book RED. Which by the way is a great read. He was talking about looking for a new business manager and the guy who used to be Alice Cooper's manager asked him "Do you want to be rich or famous? Cause you can't be both!" Alice by the way was famous according to him, not rich having spent all he made making him self famous.

Reggie made himself famous. But the house of cards crumbled.

I still love the way he made the same claims about the Baja hulls as he did the Fountain hulls. Fastest, safest, most fuel efficient... they can't both be??? Oh that's right neither is.

I'm looking forward to the Reggie Fountain episode of American Greed.

 

[sasto]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

sasto,
In my previous job, we were approached to help out with movie about Don Aronow and it never made it past the negotiation stage. I think it would have been a great movie they had a good line up of actors.

I agree, Great Escape. His story has always interested me. I haven't been to a movie in years, but that one I would go see. The Blue Thunder dealings by Don was probably his demise, could have been the womanizing too, we may never know. They have a confession from a guy serving a life sentenance. Many don't buy it!

As for Reggie Fountain, I think he had two goals in mind. Racing and promoting himself. Money isn't everything.

There are literally dozens of small operations around to fill in the gaps of those going under. Some of those molds by Donzi and Fountain have been floating around these parts for a long time. We had a Donzi Sweet 16 hull mold for years and built a couple for some locals.

 

[oops!]

Re: Good Bye Fountain, ProLine, Donzi and Baja....

all is not lost here......

there is a counter that says the reciever has no agreement with fountain


First Capital stated in its complaint that it and the borrower defendants (which includes Fountain Powerboats) are ?engaged in a lending relationship that began in 2007.? Fountain Powerboats denies that claim.


Fountain Powerboats Inc. is one of more than a dozen defendants being sued by First Capital, a lending company that filed a complaint last week in an effort to collect $61.04 million and have the court appoint a receiver to the case.

Fountain Powerboats is denying nearly all the claims of First Capital. A judge in Greensboro who handles complex business cases is in charge of the case.



The Fountain Powerboats response also denied First Capital?s claim that a ?true and correct copy of the Fountain Loan Agreement is attached hereto as exhibit 4.? Fountain Powerboats also denies the claim that First Capital has a ?security interest in the tangible assets? and the ?outstanding capital stock and membership interests? of the borrower defendants.

Fountain Powerboats continued to deny it is in default throughout its response, as well as denying claims about the amount of money involved and that the entire facility has been shut down. It denies claims that a receiver is needed.


The judge then set a hearing on First Capital's motion for a continuing receiver. That is scheduled to begin at 2:00 p.m. on November 2.