Jacuzzi/Sundance going under?

[Hot Tub Ryan]

Hi everyone. I work in the industry and I lurk here from time to time to see what consumers are saying and how other dealers are doing. I finally registered today because a friend of my sent me a New York Times article with an interesting blurb about Jacuzzi in it and I wanted to get everyones take. I know there are a lot of Jacuzzi guys here too.

The article mostly focuses on Apollo Group (the company that owns Jacuzzi), it's management and business practices but this is the blurb that caught my attention...

"It acquired a broad range of companies — cruise lines, paper companies and grocery store chains. Mr. Black allows that five of those companies are “cyclically challenged.” Those five are the hot-tub manufacturer Jacuzzi; the accessories retailer Claire’s; Realogy (which owns Century 21 and Coldwell Banker) and the Countrywide real estate firm in Britain; and a gambling company, Harrah’s. WHILE Mr. Black remains upbeat about the prospects for those companies, some analysts say most of them are severely indebted and are crumbling quickly because of the economy.

It's actually a pretty fascinating article. You should read the whole thing and tell us what you think. Here's a link.

http://www.nytimes.com/2008/12/07/business/07leon.html?_r=1&scp=1&sq=apollo%20jacuzzi&st=cse

[stuart]

It's ironic that everyone has been worried about the financial stability of the smaller, privately owned factories however, many of them may be better suited to ride this out then some of the mega conglomerates just because of banking.

Any way you look at it we're in a pretty good storm....

Casey Loyd said something to me at the show after hours that I thought was very poignant....He said "everyone in our industry is feeling the crunch but we're all in this together and those of us that keep our heads and don't overreact will make it through together"

[Zep]

wow that was an interesting read.....

scary stuff for the companies involved...pretty sad really when
these investment guys buy a company and saddle it with huge debt

i would think even if Jacuzzi was to "go under" with these Wall Street
managers.... such a well known brand as Jacuzzi would bounce back in some form.

hopefully things will turn around or maybe this guy will spin off Jacuzzi to a new better owner

[Pathfinder]

I recently read in Pool & Spa Marketing (a canadian Industry mag) That Jacuzzi Brands just signed a big licensing deal with Global Icons to expand the brand into more backyard leisure products. As the said they want make the company a one stop shopping experience for spa buyers.   Which my take is they are going to slap there name on everything they can think of.  So with that move I dont think they are in too much trouble. But who knows???

[James]

Even if this Apollo holding co. decided to slice Sundance/Jacuzzi away, the brand has too much history and name recognition to have it just vanish. Some other entity would buy it.

It might be a confusing bumpy ride for a while for them, but Sundance/Jacuzzi will still be a player in the long run.

[Hot Tub Ryan]

i would think even if Jacuzzi was to "go under" with these Wall Street
managers.... such a well known brand as Jacuzzi would bounce back in some form.

I never thought we would see a huge name like Mervyn's go away. They were much bigger than Jacuzzi. These are crazy times for sure...

[Zep]

"I never thought we would see a huge name like Mervyn's go away.
They were much bigger than Jacuzzi. These are crazy times for sure."

Ryan I agree in some ways, hell we may see Chrysler go away......
I hope the Jacuzzi brand survives this wall street nightmare....the
difference could be that Jacuzzi/Sundance are offering a top
quality product where I'm not sure a Chrysler is?

[Vanguard]

I wonder if Watkins/Masco would be interested....

[hottubdan]

I recently read in Pool & Spa Marketing (a canadian Industry mag) That Jacuzzi Brands just signed a big licensing deal with Global Icons to expand the brand into more backyard leisure products. As the said they want make the company a one stop shopping experience for spa buyers.   Which my take is they are going to slap there name on everything they can think of.  So with that move I dont think they are in too much trouble. But who knows???

They have been trying to do that for years.

[Spatech_tuo]

I wonder if Watkins/Masco would be interested....

If anything happened I'm sure Living Waters would step in and buy the name to go with their Lazyboy and Coleman brands LOL!!!

[Chas]

I have watched Watkins buy another brand. That one wasn't in financial trouble - or if it was, it was not publicly known. Since then, they have already added a new name of their own - Limelight spas - so I doubt there would be any interest in buying up a bunch of debt.

Just my opinion.


  8-)

[michiganwinter]

Interesting

I brought this up a month ago on this thread http://www.whatsthebest-hottub.com/cgi-bin/yabb/YaBB.pl?num=1226263540

I did buy the Sundance and took delivery yesterday. Hopefully if they do go belly up the dealer wont (like them a lot and they have been carrying SD for years) and we'll still be able to get it fixed and under warranty.  Who knows. Many of you said there was no way Jacuzzi and SD would be going under.  This is an economy like no other for sure!

[Jacuzzi Jim]

 A very interesting and scary article, I think a lot of it is speculation, but none the less its a concern. I emailed the link to a few so will see if anything comes up.  This Mr Black doesn't sound to worried though?    I am guessing his pockets are very deep,but its up to him where he wants to spend his money?

 Jacuzzi and Sundance are strong enough to survive and if sold off someone would pick them up, debt or not, its a bit different industry then Linen and things.

  Who knows in the end.  There will always be other lines available to sell, but I really think things will be alright.

[Vanguard]

I have watched Watkins buy another brand. That one wasn't in financial trouble - or if it was, it was not publicly known. Since then, they have already added a new name of their own - Limelight spas - so I doubt there would be any interest in buying up a bunch of debt.

Just my opinion.


  8-)

Companies have been known to buy other companies just to shut them down.   Or, they could buy them and just let them run independent of one another.  

Doubt either case would happen.  Since we're all speculating, I thought I'd join in.

[Jacuzzi Jim]

Companies have been known to buy other companies just to shut them down.   Or, they could buy them and just let them run independent of one another.  

Doubt either case would happen.  Since we're all speculating, I thought I'd join in.

 I could see that happening to dynasty,LA spas a few others I cant think of, but to let a name like Jacuzzi or Sundance go down just to get rid of them wouldn't make any sense,not to mention what you'd have to pay to acquire them .

 After I win the 170 million mega millions this week I am not going to worry anyway!  Of course I am just speculating