Is Beckett in trouble?

RonBurgundy

Hearing rumors in Dallas that Beckett may be in trouble. Also work close to their offices and their building, which is prime real estate along the Tollway in North Dallas, is up for sale.

helionaut

What kind of trouble? I doubt they own their land, but with the sale last year, their site and magazines have been going through changes that seem like cost cutting. Maybe they are looking to relocate offices.

SDavid

Legal trouble or financial trouble?

RonBurgundy

Hearing $$$, and that new ownership didn't realize the extent of it until taking over.

stormsurge

It could be that the private equity owners are trying to suck cash out of the company.

Several articles today in the major financial papers are covering how private equity owners will purchase companies and immediately pay themselves sizable dividends by leveraging the balance sheets.

ndleo

I doubt that the investment fund is sucking cash out of Beckett. Their stated goal after purchasing Beckett was to grow the internet business and grading. You could draw the implication that the price guide magazine business would not receive any new investment. Maybe they don't need as much office space if they don't plan to grow the magazine business.

The real money from private equity comes from growing the business and then selling it to another sucker. I have a feeling that the fund will eventually sell it to Ebay. It would make a perfect fit.

GOODLIEU

I agree with Stormsurge. These Private Equity owners could care less about card grading, registry's or anything else the Company they bought a piece of has to offer they simply want to make a quick buck than move on to the next deal Gordon Gekko style! (Love that Movie). I wonder if Fleer fell victim to this type of manipulation? More importantly with the collectibles market making huge profits nowdays, can it be long before all these different companies involved in it come under attack. It makes me a little nervous as a collector with a lot invested in my hobby.

lawnmowerman

I know their grading department's work is suffering. The quality in my opinion is at an all time low.

Matt

ndleo

I don't see what is wrong with Apprise Media trying to make a profit on Beckett. I don't see how ruining the company will benefit them. They paid $20 million to Dr. Beckett, so they will probably try to grow the company.

That probably means that Beckett will start doing things that may offend traditional collectors. The most valuable asset the company has is its name, so they will probably leverage that into retail.

Fleer was brought down by poor management. They borrowed a lot of money from the banks to buy the company and they couldn't make the payments to the leagues, players, or suppliers. Banks don't care about the hobby, they just want their interest payments.

Beckett was purchased by investment funds, so they can take a longer view of the business.

rbdjr1

Without looking up the "fall of Fleer" articles, does anyone know if the Fleer name is still being used in some limited capacity on some new items?

rbd

edit: I just didn't remember the "fall of Fleer" details?

phreakydancin

<< <i>Without looking up the "fall of Fleer" articles, does anyone know if the Fleer name is still being used in some limited capacity on some new items?

rbd

edit: I just didn't remember the "fall of Fleer" details? >>

Yes, Upper Deck bought it, and UD Fleer Ultra hockey will be out soon.