BallReviews

Equipment Boards => Brunswick => Topic started by: Dewey24 on July 20, 2014, 06:14:10 AM

Title: "Corporate Brunswick" gets out.
Post by: Dewey24 on July 20, 2014, 06:14:10 AM
   Ok so rant on:
    So like most of you for the last few days I've been trying to get thru my head that Brunswick is getting out of bowling. For many of us, Brunswick has meant bowling for our entire lives, from balls, to lanes , to masking units, and scoring systems. But I think it's important to remember "Corporate Brunswick" is getting out. They view fitness equipment and boats to be better money makers. That's their prerogative.
    Rumors have already started that the sky is falling.  The bowling Products side is for sale yes. It's not going out of business it's for sale. Maybe they find a buyer and things get even better. I've read people say that they are done buying Brunswick equipment. I'm sorry I think this is a great disservice to the Products department. Billy O and his team have been putting out some top notch equipment. Phil and Mo signed their deal with Brunswick.  Thank god they did because maybe I wouldn't have tried what Radical had to offer if they hadn't. I now have three Radical pieces mixed into my bag with more on the way.
     How many times have we all asked a question on this forum and Brunsnick, or RobLaw helped us out.  It's got to be a pretty scary time for our team Brunswick friends, starting anonymous rumors on the internet can't make it any better.  The best thing to do right now is wait, and buy a lot of Brunswick/Radical/DV8  equipment. Make a potential buyer see the Products division as a winner we all know it can be.
With all this being said what do you think the next ball in the vintage line will be  ;)
Rant Off
Title: Re: "Corporate Brunswick" gets out.
Post by: BallReviews-Removed0385 on July 20, 2014, 07:04:06 AM

Nice post.

The products side has been, and is now, profitable.  Hopefully the news of a buyer will surface soon to put the uninformed speculation to bed, but time will tell. 

If you're the potential buyer, and you see the upside to owning an already profitable enterprise, you probably buy it and let it keep on going as is.  Why mess with something that's already profitable?  Certainly much depends on WHO the buyer ends up being, but for now it's business as usual.
Title: Re: "Corporate Brunswick" gets out.
Post by: skwira001 on July 22, 2014, 02:27:05 PM
Well AMF took over AMF Maplewood Lanes which was extremely profitable and shut everything down that made it so successful.
Title: Re: "Corporate Brunswick" gets out.
Post by: bradl on July 22, 2014, 03:08:52 PM
Well AMF took over AMF Maplewood Lanes which was extremely profitable and shut everything down that made it so successful.

Maplewood Lanes in Omaha?

BL.
Title: Re: "Corporate Brunswick" gets out.
Post by: skwira001 on July 22, 2014, 03:15:38 PM
AMF Maplewood Lanes in Maplewood, Minnesota.  They were extremely profitable.  I don't understand what Tom Shannon is saying about the old bowling alley and the greasy hot dogs.  I used to eat great pizza there before AMF.
Title: Re: "Corporate Brunswick" gets out.
Post by: kidlost2000 on July 24, 2014, 09:19:38 PM
The more important factor for me is who has the $$$$ to buy it? That is a lot of stuff if its all sold as one.

Balls, lanes, pins, scoring ect. That is a lot of money.
Title: Re: "Corporate Brunswick" gets out.
Post by: amyers2002 on July 24, 2014, 09:42:39 PM
I read in an article somewhere today the expected price was going to be 40 million or below. I would have thought more.
Title: Re: "Corporate Brunswick" gets out.
Post by: Spider Man on July 25, 2014, 06:48:39 AM
just shows what a drag the business has become to the co.



I read in an article somewhere today the expected price was going to be 40 million or below. I would have thought more.
Title: Re: "Corporate Brunswick" gets out.
Post by: itsallaboutme on July 25, 2014, 07:03:56 AM
I'll be surprised if they find a buyer.  Part of the problem is with the name.  What if the centers are run into the ground.  The Brunswick brand will go the same way as the AMF brand did when the centers were run into the ground. 

Way to much risk vs. possible reward in a declining market to purchase and run it as it is now.  Someone would have to come in with a vision and a plan to reorganize sales and distribution, but I don't think there are enough possibilities out there to make it worth the risk.
Title: Re: "Corporate Brunswick" gets out.
Post by: Armourboy on July 25, 2014, 02:43:37 PM
Short of some conglomerate, I think it is possible  that they will be forced to break it up in order to sell it. I could see someone buying the ball part just for the brand name, and other parts that are specific to a certain part of an industry, but I don't see someone like Storm, or EBI, etc buying the whole thing.

Could be wrong though, I don't know enough about the other parts of the bowling side to know what is profitable and what they were making just because they always had.
Title: Re: "Corporate Brunswick" gets out.
Post by: avabob on July 26, 2014, 09:58:31 AM
The question is does anyone see value in the pinsetting, and lane manufacturing business.  Lots of ball manufacturers out there.  We wouldn't miss one that shut down, even if it was a venerable brand.  However Equipment is another matter.  If there is value, I could see a Storm expanding into that part of the business, by buying the equipment side. Centers are another issue entirely. 
Title: Re: "Corporate Brunswick" gets out.
Post by: Armourboy on July 28, 2014, 04:11:43 AM
Dont know how many new lanes and pinsetters are bought every year. Wouldn't think on a year to year basis it would be that great, then again parts alone may be the better side of it.

At this point I don't even know who is left that still does that stuff. I mean if there is another business out there doing it short of maybe the parts side I'm  not sure why you would pay anything for, would probably be better long term just to let it go away if you are them.
Title: Re: "Corporate Brunswick" gets out.
Post by: ccrider on July 28, 2014, 08:38:22 AM
Brunswick's product side was supported by Brunswick centers. I would bet that AMF has a different supplier. If this is true, the products line may loose a large amount of business.

Who knows what will happen to the bowling ball production in Mexico. My guess is that it would sell quickly if separated. Got to be cheaper to make balls there, plus Brunswick is making good balls now.

The closest center to me (50 miles) has not announced any changes for the upcoming league. Everybody is wait and see.
Title: Re: "Corporate Brunswick" gets out.
Post by: BallReviews-Removed0385 on July 28, 2014, 09:15:19 AM

There are tons of centers who are/were not owned by Brunswick that have A-2, GS, and GSX pinsetters that will continue to need their parts forever.  Based on what we pay for parts, whoever buys that division should do quite well.
Title: Re: "Corporate Brunswick" gets out.
Post by: bradl on July 28, 2014, 01:47:39 PM

There are tons of centers who are/were not owned by Brunswick that have A-2, GS, and GSX pinsetters that will continue to need their parts forever.  Based on what we pay for parts, whoever buys that division should do quite well.

This. Now that I think of it, only Sam's Town and Wildfire Lanes in the Vegas area are the only alleys that don't use Brunswick pinsetters.

BL.
Title: Re: "Corporate Brunswick" gets out.
Post by: itsallaboutme on July 28, 2014, 03:12:46 PM
I guess you guys missed the other thread that JustRico said the bowling centers supported that division when he was there.  Consumer products and capital equipment hasn't turned around since he left Brunswick.
Title: Re: "Corporate Brunswick" gets out.
Post by: BrunsNick on July 28, 2014, 05:08:37 PM
All the product side is a viable business. We will see how it plays out.
Title: Re: "Corporate Brunswick" gets out.
Post by: itsallaboutme on July 28, 2014, 05:29:21 PM
Unfortunately the annual report and the Sr. leaders wanting to get out of bowling manufacturing doesn't present as rosy of a picture.

Title: Re: "Corporate Brunswick" gets out.
Post by: JustRico on July 28, 2014, 10:39:24 PM
I only tell it like I know it was, while I was there...and question much else

And big difference between viable and profitable
Title: Re: "Corporate Brunswick" gets out.
Post by: Tenth Frame Products on July 28, 2014, 10:45:26 PM
Brunswick consumer goods is going to be a tough sell. Extremely doubtful they will find a buyer by the end of the year or ever. Unless of course they are willing to take a bigger loss than anticipated.

Brunswick isn't the only company looking to exit. There are more.....
Title: Re: "Corporate Brunswick" gets out.
Post by: nocarey on July 29, 2014, 11:16:55 AM
not sure if anyone posted this yet. . .Open letter to the bowling industry-
http://www.brunswickbowling.com/news/article/open-letter-to-the-bowling-industry/
Title: Re: "Corporate Brunswick" gets out.
Post by: milorafferty on July 29, 2014, 11:27:41 AM
Would it make sense for Kegel to buy Brunswick Bowling Products? Or maybe a company like Nike?
Title: Re: "Corporate Brunswick" gets out.
Post by: JustRico on July 29, 2014, 12:04:07 PM
Nike - no they like to make money
Why would Kegel buy them when they don't need to?
Title: Re: "Corporate Brunswick" gets out.
Post by: itsallaboutme on July 29, 2014, 12:09:36 PM
Take the bowling emotion out of it and ask yourself why it would be a good business decision for a company like Nike to re-enter a declining industry like bowling.  An industry they were in and made the decision to get out of.
Title: Re: "Corporate Brunswick" gets out.
Post by: milorafferty on July 29, 2014, 12:15:05 PM
Nike - no they like to make money
Why would Kegel buy them when they don't need to?

To grow their brand. One, they would be buying their largest competitor. Two, it would give them a ready made entrance into lane manufacturing, both equipment and lane surfaces. The balls, shoes and other products would probably not be an interest to them.

As for Nike, the balls, shoes etc would fit under their umbrella, IF they see a future in bowling. Just because they got out before, doesn't mean they might not see it as a possible revenue stream in the future.

Besides, it was just a question. I have no emotional stake in Brunswick surviving as a brand or not.
Title: Re: "Corporate Brunswick" gets out.
Post by: JustRico on July 29, 2014, 12:24:00 PM
Mine response was in a rhetorical sense

If you do take emotion put of it they don't need to buy their competitor to grow their brand...their brand is strong and in the alternative they could sit and play wait & see...they don't need to do anything right now
Nike would not venture into a market where the marginals are so minimal...no real growth or ROI that's why they got out 25 yrs ago
Title: Re: "Corporate Brunswick" gets out.
Post by: ccrider on July 29, 2014, 02:11:19 PM
My thoughts are similar to Justrico's. Brunswick is selling to focus on more profitable areas. If they weed not making enough to stay in the market, I don't see anyone outside the industry running in to purchase.

There is no guaranty that Bowlmor will continue to use Brunswick product. If Bowlmor's long term plan is to move away from Brunswick that will have an impact on the sale of the product division.   
Title: Re: "Corporate Brunswick" gets out.
Post by: Armourboy on July 31, 2014, 06:24:31 AM
Just being on the outside looking in, the only thing I think anyone will have any great interest in is the balls, if nothing else just for the brand name. Heck even with that, if you are a current ball company, there is no real need to buy it unless you need a facility to produce in. Why have another line when there are already so many to begin with?
Title: Re: "Corporate Brunswick" gets out.
Post by: Dogtown on July 31, 2014, 01:00:13 PM
Nike is in skate boarding and snow boarding.  I can't image those lines being as profitable as what bowling could be.
Title: Re: "Corporate Brunswick" gets out.
Post by: itsallaboutme on July 31, 2014, 03:17:07 PM
Etonic was in pretty deep and bailed. And now Brunswick wants to bail on a supposed profitable division.  That should pretty much kill the speculation of an outside company jumping into bowling. The people that make the money decisions at companies like those are pretty smart.