CU has put Superior Auctions up for sale ??

Basilone

MW posted this information over on the SGC Board that most of us will find interesting.



Major news from Collectors Universe. The company has just released its Quarterly Financial Report (SEC form 10-Q) and some of the information will undoubtedly come as a surprise to some in the collecting community.

From the report:

Part I, Item 1: "Notes to Condensed Consolidated Financial Statements" (unaudited), Section 2, p 7.

Discontinued Operations.

"On December 4, 2003, the Company’s Board of Directors authorized management to proceed with the implementation of a plan to focus the Company’s financial and management resources, and collectibles expertise, on the operations and growth of its grading and authentication businesses, by divesting and discontinuing the Company’s collectibles auctions and direct sales businesses."

[My note: the net quarterly operating loss from these companies totaled $782,000 according to Part I, Item 1: Financial Statements, p 2.]

"Accordingly, in accordance with SFAS 144, the assets and related liabilities of the collectible sales segment, which comprises the Bowers and Merena, Superior Sports Auctions, Kingswood Coin Actions, Odyssey Publications, Lyn Knight Currency Auctions and DHRC businesses, have been classified as held for sale and the related operating results have been classified as discontinued operations. The consolidated financial statements as of June 30, 2003 and for the three and six month periods ended December 31, 2002 have also been restated to classify the assets and related liabilities of this segment as held for sale and the related operating results as discontinued operations."

"The Company currently is in negotiations to sell its collectible coin and sports memorabilia auction businesses, which are its largest collectibles sales businesses. However, there is no assurance that those negotiations will culminate in a sale of those businesses. The Company is seeking purchasers for its remaining collectibles sales businesses as well."


Translation:

Collectors Universe has officially classified Superior Auctions and the company that publishes the SMR (Odyssey) as discontinued operations in its Quarterly report to the Securities and Exchange Commission. Both companies are on the sales block.

I can only speculate why PSA has not made this announcement to collectors or at least released some information relating to the fact that Superior Auctions and Odyssey have been classified as discontinued and are being offered for sale.


Here is a link to the thread: SGC LINK

murcerfan

I heard this last night through the grapevine
edited to add (ok, maybe it was Carrollton)

It surprises me, The auction game seems like a sure money maker to me.
Perhaps the blatant conflict of interest has finally forced the issue.

spacktrack

Any idea as to what the asking price and/or bids on the Superior part of the company amount to?

Skycap

It's difficult to imagine that Superior could be losing money. I believe Superior's auctions at the National in Atlantic City and at the Chicago Sun-Times show last November were the highest grossing ones they've ever held.

Also, there seems to have been a twist in the relationship between Superior and the Chicago Sun-Times shows. You'll recall that last year Superior announced it had become the official auctioneer for future Sun-Times shows and, indeed, held an auction at that convention last November. Well, originally Superior's next auction was to happen during the upcoming March 19-21 Sun-Times show. Now they've backed off from that, and their web page indicates that the lots will merely be available for preview there, and the auction will take place the following week over the internet and phone only like the old ones. Hmmmm.

Skycap

theBobs

Superior should sell itself in the Spring Auction. That would add 15% to whatever they get for the company...

qmayer

What does that mean for the SMR magazine? No more? If there's no more SMR mag, then how will PSA compensate for that portion of our membership fees? I suggest 10 free grades at the 7-day level! *crosses fingers*

Justin

murcerfan

My sources tell me Davalillo has made a bid for buying out the SMR.

sellerman23

theBobs!

LOL!
good one!

Dave
sellerman23

Chew

I have been told that the Greg Manning company is buying Superior.

I was also told that PSA let Peter Ma head of customer service and two others go

in a cost saving move.

H. Walker

zardoz51

Heard the same thing re: Manning and his Spectrum/Teletrade empire were buying out Superior. I hope that they have the foresight to keep Chris Porter on board as he is one class act.

I had heard that Peter, and three from the PSA customer service side, as well as a couple of marketing types were let go. Perhaps they will be outsourcing these services to India like every other big corp.

It's too bad really, I rather liked Peter. He always came through for me and took care of business. I guess that he'll be at GAI in a couple of weeks.

mikeschmidt

That sucks -- I had heard from Peter less than two weeks ago. He always treated me well -- but the same can be said for most of PSA's historic customer service reps...

aconte

<< <i>Perhaps they will be outsourcing these services to India like every other big corp. >>



z,

Welcome back! I sure hope not. Just bought a new Dell pc. Talking with a phone rep was a nightmare. If it wasn't so cheap
I would of went somewhere else. Can you say clueless and confused!

aconte

1420sports

Lyle Raimer leaves a while back, now Peter Ma is gone ... I always received quality service from them.

They should have let someone else go.

Buccaneer

I think they should eliminate the free SMR for members, it seems redundant with the online SMR, Pop Reports and PSA Insider.

koby

It is unfortunate that Peter is a casualty of this downsizing. Peter was very very helpful recently when I had a problem with one of my submissions.

Virtualizard

<< <i>It's difficult to imagine that Superior could be losing money. I believe Superior's auctions at the National in Atlantic City and at the Chicago Sun-Times show last November were the highest grossing ones they've ever held... >>



Maybe it had something to do with the overhead costs involved in shipping two (2) catalogs and two (2) dvds to everyone on their mailing list over at least the last three auctions! I think I actually received three dvds from the last one.

JEB.

CW

Whoa... did I just see a post from zardoz?? Sweeeet!

Tipem

The best thing about this whole story is that Zardoz is BAAAAACK!!!!!!



Zardoz,


Welcome Back!!!! You were missed

Vic

I agree with JEBs assessment.I think that too much capital went into the last auction or two.I am sure that it is just a financial decision.Too Bad!!

Basilone

There is a guy named txwhistleblower (interesting name...eh?) that posts on the Yahoo CLCT boards....from his posts he does not seem to have much confidence in CLCT.

CDC4

I was checking things on marketguide.com when I saw the following:

"Greg Manning Auctions Acquires Bowers and Merena, Kingswood Coin Auction and Superior Sports Auction Assets from Collectors Universe, Inc.
2004 Feb 19 5:45 PM
Greg Manning Auctions, Inc., a global collectibles merchant and auction house network, announced that it has acquired the business assets of Bowers and Merena Galleries, Kingswood Coin Auctions and Superior Sports Auctions from Collectors Universe, Inc. The total purchase price paid by GMAI for the combined assets was $2.5 million."

1967topps

Did the Grader of Doom lose his job? perhaps only time (and more submissions will tell)

Griffins

Nope, he's still there.