GAI filed Chapter 11
blades3
Posts: 141
Sorry if this has been discussed already, but I haven't seen it and I follow these boards pretty closely. GAI filed Chapter 11 on Dec. 18, 2008. They list 50,000-100,000 in assets and $1 million to $10 million in liabilities. Baker, Rocchi and the IRS are all listed in the top 20 creditors. Not a pretty picture. I have confirmed all of this through court documents.
Steven Bloedow
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Mike
good stuff, though not surprising at all!
there's almost 3,000 GAI eBay auctions currently running; I wonder how this news will effect the count.
I smell a possible GAI fire-sale
PoppaJ
<< <i>Uh....I was about to send in about 10 1989 Fleer racks to get slabbed for my collection. Should I proceed or wait for PSA to get holders ?...someday. >>
I'm holding out all the racks I have for a someday PSA holder.
Case Number?
<< <i>
<< <i>Uh....I was about to send in about 10 1989 Fleer racks to get slabbed for my collection. Should I proceed or wait for PSA to get holders ?...someday. >>
I'm holding out all the racks I have for a someday PSA holder. >>
Looks like I am doing that too.
Have 7 Black Box racks that were ready to summit this week.
All my FF versions are in GAI holders (with the specific version name on the flip) and I have one that was miscut so it had to go in a GEM holder. Well I now found one so I could have my whole FF collection in the same holder.....not now.
I know they have issues but for me and my collection, it was a perfect fit.
hopefully consumers will benefit by being able to buy graded cardboard at even more discounted prices...
J
RIP GURU
You are correct about the Chapter 11 reorganization thing, it's more of a protection against debtors while they reorganize, but either way it's a very bad sign.
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/s/ JackWESQ
1989FleerBillRipkencollector, due to your unique collection, I would go ahead and hurry up and send them in. Chapter 11 does mean they will be around in the short term at the least.
Raw: Tony Gonzalez (low #'d cards, and especially 1/1's) and Steve Young.
Good for the business, bad for everyone they owe money to.
I'm shocked, shocked
<< <i>Chapter 11 is not always a bad thing for a company...usually the opposite. The difference here in most big companies is whether the GAI name can continue to take public hits like this to its brand. That I would question.
1989FleerBillRipkencollector, due to your unique collection, I would go ahead and hurry up and send them in. Chapter 11 does mean they will be around in the short term at the least. >>
Thanks for the vote of confidence. I decided to go ahead and submit and cross my fingers. If I see "1989 Fleer rack packs" listed as their property then I'll freak out. lol
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This is known as “bad luck.”
John
HOF SIGNED FOOTBALL RCS
<< <i>Watch GAI sales closely to get a feel as to what might happen to PSA cards if PSA ever bites the big one. >>
PSA's downfall won't look like GAI's downfall. GAI was never the market leader. They were always on the outside looking in.
WTB: 2001 Leaf Rookies & Stars Longevity: Ryan Jensen #/25
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It'll be interesting to see where Baker ends up (my guess is Beckett).
<< <i>Has GAI ever really stood behind its cards like PSA does? >>
No.
WTB: 2001 Leaf Rookies & Stars Longevity: Ryan Jensen #/25
<< <i>Watch GAI sales closely to get a feel as to what might happen to PSA cards if PSA ever bites the big one. >>
PSA's downfall won't look like GAI's downfall. GAI was never the market leader. They were always on the outside looking in. >>
In this crazy economy, so-called, market leaders have been going South, some bankrupt, some bailed out for now! So being #1, or near the top,is not all that safe anymore. I'm sure Joe orlando and company, are well aware of just how tough 2008 was.
GM
Ford
Chrysler
Citigroup
AIG
Freddie mac, Fannie Mae
Lehman Brothers
Washington Mut.
Wachovia
Indy Mac
Countrywide
AM Ambro
...and many more, Merryl, Bear, etc.
rd
Think the auto manufacturers are better off making cr@ppy cars. This way, we will all need to buy new ones every few years, and get little or nothing for that trade in?
Quicksilver Messenger Service - Smokestack Lightning (Live) 1968
Quicksilver Messenger Service - The Hat (Live) 1971
As Gomer used to say:
- John Wooden
Steve
WTB: 2001 Leaf Rookies & Stars Longevity: Ryan Jensen #/25
<< <i>I think this just shows that the market for 3rd party graders is pretty much closed. If you're not PSA, SGC, or Beckett, you won't survive. >>
I disagree with that. I think if someone wanted to (not sure why they would considering the small profit margin potential) they could get a headhunter to pick off execs from a few of those companies and start a reputable new company. But like I said, who would want to take a big risk for a small profit?
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<< <i>not surprising...
hopefully consumers will benefit by being able to buy graded cardboard at even more discounted prices...
J >>
julen, you assume the "graded cardboard" is unaltered.....thats a BIG assumption with GAI...
Yes, Chapter 11 has bailed out many companies and gotten them back on their feet. Many of those companies may have expanded too quickly and their expenses grew faster than their income. However, after a while the increased income exceeded their increased expenses and they went on to be thriving companies. HOWEVER, it does not seem like this is what caused GAIs filing. I do not know what caused them to file ... could it be that the owners took huge returns over the past years without caring about what happened to the company? (Sound a little like some of the recent bank failures?) Whatever it might be, how long do you think it would take GAI to profit FIVE MILLION DOLLARS to pay back their creditors? (Just guessing as to the amount.)
At this point in time I would not feel safe sending in anything to GAI. If your packs are there if and when they file Chapter 7, don't hold your breath waiting for them to be returned to you! Also, don't you think they may be a little more hesitant to send back packs as "resealed"? I never bought many GAI cards, but most of my "sold" pack collection was holdered by GAI. I would not feel comfortable at all purchasing (for fair market value) any unopened pack with the new GAI flip.
For the sake of the collecting community I hope things work out for GAI ... but I have my doubts.
Doug
Liquidating my collection for the 3rd and final time. Time for others to enjoy what I have enjoyed over the last several decades. Money could be put to better use.
I do not work for GAI, nor do I have an interest in their business. Like many, I have, and have had, items authenticated by GAI, as well as PSA/DNA and JSA.
I simply get tired of the unwarranted bashing and rumor mongering that is mainly directed at GAI by a few individuals, while consistently ignoring the same issues with the other companies.
I took it upon myself to verify information from various sources.
Here are the facts:
GAI - Global Authentication, Inc has not filed for bankruptcy
The parent company GLOBAL AUTHENTICATION ACQUIRING, INC, of which GAI is an independent subsidiary, filed for Chapter 11 protection on December 16, 2008.
Chapter 11 is a reorganization, as opposed to Chapter 7, which is a liquidation.
The day to day operations of GAI have not, and will not be affected.
GAI was recently acquired by a new owner, with new management and support personal brought in. They have also moved to a new location in Tustin, CA with newer and more advanced facilities.
The parent company filed for reorganization to settle past obligations in reference to the company's prior landlord and contractual obligations.
This reorganization of the parent company was taken in order to place all of it's subsidiaries in a more advanced position for future growth.
This will enable GAI in particular, to better serve the collecting community in the future with improved customer service, state of the art authentication facilities, and a smooth and enjoyable experience for all past, current, and future hobbyists.
If you have any questions or concerns, you are welcome to call 949-366-9500 and speak with a member of the management, or visit their new and improved web-site at: http://www.globalauthentication.net/default.asp
On a side note:
When the FBI raided The 29th National Sports Collectors Convention in July of 2008 and handed out subpoenas, the only major authentication company at that show who was not issued a subpoenas, or visited by the FBI was:
GAI - Global Authentication, Inc.
Food for thought.
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Mickey did you mean to say GAI?
Steve
Yeah. I just edited it. On your comment about the best grader. Baker is the best. The problem is, he's obviously not using his talent. Unethical and maybe even illegal practices have come into play. This is very sad. When GAI first started grading, I honestly believe they were incredibly accurate. They were using the half grade perfectly on vintage cards. Their standards were very high and the customer service was fantastic. Then came a sickening downfall. To me, GAI was the worst thing to ever happen to the sportscard industry. People put alot of faith in them and they let everyone down. Sad but true. Look at some of the very high grade GAI cards on EBAY, most are a joke. I only deal in older cards 1930's thru 75.
Mickey71
Thanks,
David (LD_Ferg)
1985 Topps Football (starting in psa 8) - #9 - started 05/21/06