It's Comes As No Surprise...

[Backlash Ar]

Cobra's website is now down.

[mochuck]

So, I guess we are on our own again. Just how big is the debt that Cobra owes? May some of us could invest, but definately new management would be a must.

[MigAz]

Man, am I glad I didn't go the new Cobra route. I just had that gut feeling. I am sick to my stomach w/ all that's going on...again.

[Al from Canada]

Hmmmmmm.......now that's not a good sign.

[Backlash Ar]

Chuck...IMO, it's more than just about the money. From a business standpoint there will be ways to take care of what liabilities any Company owes. I believe it's more about perception and viablility because it certainly isn't about the quality product that was being produced. It's difficult for any company to grow and prosper when the stability of that company remains in question. People just aren't going to spend their hard earned money buying anything from a company that they perceive as not being on solid footing, and who can blame them?

Cobra, with Ed Fry at the helm, was making a valiant effort to get "over the hump" after Viper went into receivership back in 2002; but that "hump" Cobra was trying to get over has now become more like an Ozark mountain thanks to Chip. It's going to take investors who have allot of money (and who are willing to lose millions initially), who understand management, who understand the boating industry, who know how to market their product, who understand that they need a few reps out on the road beating the bushes looking for dealers who would be willing to network the Cobra line, and who understand that it will probably take 5-7 years for Cobra to even come close to showing a profit. We all have our fingers crossed and some of us have even said a few prayers. We'll just have to wait and see if anything developes, miracles do happen! Keep the faith!

[5over15]

Well maybe it's time to talk with Brunswick Marine or Genmar....Between them they probably own 30+ boat companies. Taking this one over would be a drop in a bucket for either one. It will take a well known company similar to one of those I listed to give Cobra Boats any consumer credability.

[Backlash Ar]

Mark, I hope that doesn't happen but if that's the only way to survive then it would be better than nothing...I might add that when Cobra went into receivership in 2002, for whatever reason, none of the bigger companies showed up then and I don't think it will happen now....Cobra is just too small a company and doesn't put much of a dent in the overall national sales $$ that bassboat owners are spending. IMO, I hope there is another option. I just don't think we need another huge conglomerant corporation like Genmar gobbling up the small companies. We still need the smaller companies that are willing to give their customers more than just a little personal touch, i.e., BassCat, Legend, Charger, Blazer and others. The more company's conglomerate corporations own the more they can set the price structure...and all bassboats are already overpriced. Just my 2 cents worth.

[5over15]

I agree, but somebody will end up with the molds and you just got to hope it's somebody who does quality work.....I think Bumble Bee is still a privately owned company (small operation in Middle TN), would rather somebody like that take it over but the $ is the issue. Heck wish I could!

[Gary L]

It would take at least $8,000,000.00 to bring it out of the dumps and get it on track. Most of that would go into advertising and obtaining a Dealer Network that stretches across the country.

[Backlash Ar]

King Cobra....I don't have that figure, (multi-millions) but needless to say, more than a wheelbarrow full. Advertising alone would run in the millions. With your background (and contacts) it looks like you would be more able to assess the $$ figure than the rest of us. What do you think? I've been told 5-7 years before they could get back in the black after what Chip has done.

[Al from Canada]

Given the size of the company I'm not sure where you're getting that kind of estimate of what it would take. Obviously there's debts that need to be paid off and I've no idea how much they could total, but then you'd have the costs of payroll, heat/hydro/taxes, etc.,etc.

You'd need to regain the trust of suppliers and be able to purchase supplies, trailers, motors, etc.,etc.

As far as advertising, I don't see it being all that expensive; you could advertise on websites such as BBC, be in 2-3 magazines and slowly put it all back together.
No question that it would be big bucks but I just don't see it being $8M or even close to that. Just my .02 cents worth.

[Gary L]

You have been out in the cold to much Al. Advertising is expensive to say the least. You will need to advertise in high profile Magazines not small scale publications and the bigones get big bucks. BBC although a great web site and a good place to have advertising is never going to bring a company like Cobra back into the lime light. It will take money and honesty to get it working again. You need to show the suppliers that you have the capital to pay them by ordering and pay with a certified check at time of order. It would build trust and later company checks would be used to pay the bills. The work force is top knotch and needs to be taken care of. They need to be asured that they are going to have a job. With that they need to asure the owner that his product is going to be produced with no flaws and in a time frame that suits the dealers needs. The advertising will be the biggest expense. The Cobra Boat is a high quality product but will it sell itself? I say no not without intergrety, honesty and a dealer network fueled by advertising and presentations at the biggest shows in the country. Give me $10,000,000.00 and in five years I will have it up and producing.

[Backlash Ar]

Costs run approximately $25K a month just to keep the doors open; i.e., building rent, employee wages, and utilities, and that doesn't count the materials and supplies needed from the vendors to actually build the boats, most of which are petroleum based...so as oil prices rise so does their costs, and that price "to just keep the doors open" is going to go up immediately because electric power down here in the Ozarks just took a gigantic leap in price. Then there's little things like equipment maintenance, engines, trailers, electronics, etc. IF new ownership doesn't come in and spends millions on advertising right from the git-go to try and reverse the negative image Chip has made for the Company then they might as well not even bother.

[bugman]

well i can tell you the advertising is very high.my wife writes the checks for it at the ford dealer she works for,billboards and tv ads are unreal.one big billboard a mile from there store cost 18,000 a month.and i wont even say what a 30sec tv add cost.

[Al from Canada]

Gary, I'm not disagreeing with you, you may be right. To do a proper job it would definitely take a dealer network, promotion at shows and some serious advertising. My background is 35 years of advertising/sales promotion so I know how expensive it can get.

I guess I was thinking more along the lines of "walk before you can run" and possibly stand a better chance of pulling it off with less capital but it would definitely take a lot longer.

It's definitely not something that could be done with someone coming along with say $2M in their pocket........

With everything that's gone on before, and now Chip putting the final nails in the coffin I'd have to say that it's looking pretty bleak. I don't think Ed helped any by thinking that they could sell direct; that just couldn't work.

[JoeBro44]

I'm gettin excited! When is the Trifecta of Gary, King Cobra, and Al planning on completing the takeover!

[TULSABOB]

Guys, Guys!....I am just as dissapointed as anyone on this crap but the truth is it is OVER.
No one is going to come in and save the plant. Too much money for such a great risk. Just not good business sense to do it. Would take WAY, WAY too long to recover the investment just to get the company back on it's feet, and Lord knows where the economy will be in 5 to 10 years anyway.

There is but one thing left to say: Viper/Venom/Cobra Bass Boats......<U>RIP</U>

JMHO

[Al from Canada]

I agree with you Bob........even if they got back on their feet, how many boats would realistically be built in a year? What would the net profit be on those boats? Would think it would take many years to get back your initial investment and there's far better ways these days (and far less risky) to invest your money. It's unfortunate but I'd have to say it's a realistic statement.

[Backlash Ar]

King Cobra...First of all, if the current profit from a boat sale was raised to reflect a bigger profit margin you'll sell about as many boats as Chip did. Under what was the current pricing the company would have had to sell ~100 boats a year to break even and new owners coming in aren't going to come close to that many boats for quite awhile, so they better have plenty of "expendable" cash to start with. What would also make your so-called "hobby" or "special interest" venture even more difficult is how the buying public views the credibility of the Company; and currently Cobra's reputation is more than just a little bit tainted.

[Al from Canada]

But regardless of how it would/could be done........the bottom line is that it would take $300,000 per year (at $25,000 per month) to just stay afloat (no pun intended).

You can only make so much profit from boats and you sure can't come out with a new Cobra or a new "brand X" at a high price.....you'd better have a top quality product at a reasonable price or no one's going to touch it.

Do the math.......how many boats would you have to build per year to just break even?

I think if you were going to try resurrecting Cobra or start a brand new brand you'd need a smaller (less expensive) facility that what Cobra currently has, but would be one huge gamble in my opinion.
You'd have to have pretty deep pockets to pay the bills until you even started to come close to breaking even. Not something that most of us would be capable of doing.