Bad news for Holley - again!

[Myron Piatek]

Hope they can pull through and make it this time around.

http://www.reuters.com/article/bankr...87294020090928

[Dave Turner]

I think we could smell that one coming. Sad times for another one of our industry legends. Probably not the last to suffer the same fate.....tough times for the employees; my thoughts are with them.

[Ed Fernandez]

How many times can you go into Chapter 11?

[Alan Roehrich]

Ed, it's not like personal bankruptcy (real strict limits). But I don't think they can do it again anytime soon. I'd bet that if they don't emerge solvent soon, the next one will be Chapter 7.

[Ed Fernandez]

Originally Posted by Alan Roehrich

Ed, it's not like personal bankruptcy (real strict limits). But I don't think they can do it again anytime soon. I'd bet that if they don't emerge solvent soon, the next one will be Chapter 7.

Chapter 7,is that like euthanasia?Calling Dr Kevorkian......

[Jeff Lee]

I've got a pair of super-rare carbs I want to restore to new condition. I would have loved to send them to Holley but not a the thought of the doors closing one day with my carbs inside. That's too bad for Holley. I sure wouldn't ever buy a BG carb!

[Todd Boyer]

Jeff, why would you never buy a BG carb?

[Ven302]

The reality is, when was the last time a car was sold with a carburetor? The aftermarket specifically the enthusiast has embraced stand alone FI for years now. I remember the release of Accel DFI at least 20 years ago! When you look at the hot rod events, so many "backyard mechanics" have embraced this technology it was only a matter of time before the carburetor purveyors would start dropping from the market. How many guys can babbit a model T connecting rod? Again a market that has entered the point of "diminishing returns". Most of these companies chase cashflow and "sales for sales sake" (the new accounting?) and forget about profitability. That is a very hazardous business plan in a shrinking market. As Dave said the real pain will be on the backs of the employees, notwithstanding the creditors.
Lets hope they can shed some fat and get back to business ASAP.

[Alan Roehrich]

Holley going bankrupt has nothing to do with the fact that they make carburetors. It has everything to do with the fact that they were run into the ground by Jeff King. Their problem is that he leveraged everything they'd have made for 25 years to buy up every company he could get his hands on. They had ten times as much debt as they could service, and a poor business plan to service their debt.

Holley makes fuel pumps, carburetors, intakes, cylinder heads, fuel injection components, and if you count Hooker, they make headers. Edelbrock makes fuel pumps, carburetors, intakes, cylinder heads, fuel injection components, and headers. Holley is foundering, Edelbrock is surviving with relative ease. Why? Because Edelbrock is not loaded with debt they can't service, but Holley is. Holley is sort of like this country. Loaded with debt it can't service, and foundering.

[mjacquesjr]

Originally Posted by Alan Roehrich

Holley going bankrupt has nothing to do with the fact that they make carburetors. It has everything to do with the fact that they were run into the ground by Jeff King. Their problem is that he leveraged everything they'd have made for 25 years to buy up every company he could get his hands on. They had ten times as much debt as they could service, and a poor business plan to service their debt.

Holley makes fuel pumps, carburetors, intakes, cylinder heads, fuel injection components, and if you count Hooker, they make headers. Edelbrock makes fuel pumps, carburetors, intakes, cylinder heads, fuel injection components, and headers. Holley is foundering, Edelbrock is surviving with relative ease. Why? Because Edelbrock is not loaded with debt they can't service, but Holley is. Holley is sort of like this country. Loaded with debt it can't service, and foundering.

A-men