GinSan / Industrial Vacuum

[Self Serve 101]

The other day I reported that Ginsan and industrial vacuum systems were bankrupt and that new investors bought the assets from the bank. I reported that Jeff Anderson, the owner and founder was forced to surrender the companies to the bank. I have been a supplier to the company for some time. I also concider myself a friend of Jeffs after many years and I had an assurance that the new owners, <who apparently were really running the companies for the past 6 months or so> would pay me the money that they owe to my company. Well, guess what? I received a letter dated 7/3/08 that said the company that owes me has no assets, no employees and no money to pay me. Funny thing is, most of the employees that we've been dealing with are still there. Now the new company wants to open a new account with us and buy the same stuff and the same prices and begin again. I know that other suppliers of theres are on the forum and if you could send me a private message about what there telling you I would appreciate it. I'll scan the letter and email it to anyone that wants a look. Companies shouldnt be able to get away with this sketchy stuff, and this is really threatening my business and the jobs of my people.

 

[Randy]

We got one of those letters also. It?s pretty sad that they can just wipe off the debt owed and get away with it. I think there are a number of car wash suppliers who are on the fence about to fall off.

 

[pitzerwm]

101, I sent you an email after your first post, you didn't respond, that makes me unhappy. Send me the letter.

Its not uncommon at all that the new people refuse to buy the liabilities, JC did that when they bought Hanna. They figure that the name is worth the heat that they will take in the short term.

IMO if Jeff is such a good friend he would have protected you some way. BK is ugly and a lot of the times the owner isn't paying enough attention to day to day operations and one day they wake up BK. I don't know if this applies to Jeff or not, but I see it a lot.

 

[Fatboy769]

Who are the new investors?

 

[rph9168]

Does that mean if anyone owes money to the old company they don't have to pay?

 

[Earl Weiss]

OK Guys Business class 101. If you extend credit to a company and they go belly up you are an unsecured creditor and you get paid last, if at all. You can protect yourself as lots of my suppliers / creditors do by requiring personal guaranties (with a personla guaranty the person can still go BK)or letters of credit. Some people will choose to use your competitors who do not require these things, unless the industry as a whole does.

Now, what seems to have happened is the bank was a secured creditor. The company failed and the bank ended up owning the assets which they then chose to sell in order to recoup some of their losses. So, the business did not do something "Shady" .

 

[Earl Weiss]

Does that mean if anyone owes money to the old company they don't have to pay?

<<<

If the bank as a scecured creditor acquired the assets, they now own the debt owed to the company and can seek to enforce it or in turn sell it to someone else who may try this.

 

[rph9168]

<<<

If the bank as a scecured creditor acquired the assets, they now own the debt owed to the company and can seek to enforce it or in turn sell it to someone else who may try this.

The announcement doesn't say anything about a bank.

 

[Earl Weiss]

The announcement doesn't say anything about a bank.

See initial post on this thread ::--------------------------------------------------------------------------------

The other day I reported that Ginsan and industrial vacuum systems were bankrupt and that new investors bought the assets from the bank. I reported that Jeff Anderson, the owner and founder was forced to surrender the companies to the bank. ____________

Not sure what "Announcement" you refer to but "Bank" is stated twice, once in each of the first 2 sentences.

 

[rph9168]

See initial post on this thread ::--------------------------------------------------------------------------------

The other day I reported that Ginsan and industrial vacuum systems were bankrupt and that new investors bought the assets from the bank. I reported that Jeff Anderson, the owner and founder was forced to surrender the companies to the bank. ____________

Not sure what "Announcement" you refer to but "Bank" is stated twice, once in each of the first 2 sentences.

Here is the announcement

*** FOR IMMEDIATE RELEASE ***
Sigrid Valk-Feeney in partnership with a Grand Rapids, MI/Nashville, TN based private equity fund has acquired the assets of GinSan Industries and Industrial Vacuum Systems. Sigrid?s credentials include over 25 years in manufacturing and demonstrated accomplishment as an entrepreneur. Jeff Anderson, the former owner of the companies will remain involved with the
business as a technical advisor and customer support resource.

The capital infusion that has been provided will allow the company to aggressively pursue product development initiatives and strengthen its commitment to quality and timely delivery. In addition, the company intends to pursue strategic acquisitions within the industry to expand its
product offerings and create value for its distribution.

For additional information please contact:
Doug Empie
P: (616) 735-5641
E: dempie@ginsan.com

Kerri de Vides
P: (616) 735-5614
E: kvides@ginsan.com

Dave Spoehr
P: (616) 735-5609
E: dspoehr@industrialvac.com

 

[mac]

I would like to see if anyone can clarify the remark by rph about owing them money. It would seem fair that if the new owners can dismiss the former debts, we can dismiss any accounts payable. I know that what's fair is not always that which happens though.

 

[Earl Weiss]

I would like to see if anyone can clarify the remark by rph about owing them money. It would seem fair that if the new owners can dismiss the former debts, we can dismiss any accounts payable. I know that what's fair is not always that which happens though.

<<<

It works like this. Any company, insolvent or not can sell it's assets. Among those assets is accounts recievable. The new owner of the acount has the right to collect the account. Now, the seller has recieved something in return for selling the assets, presumably money. That money is used to pay debts of the company in order of priority set by law which may vary but is typicaly as follows: Taxes, wages, secured debts and unsecured debts.

If you are in the list of priorities after the money runs out, you get -0-. If there is some money for your level it is pro rated among creditors at that level. Most often there is nothing left after priority debts such as taxws, wages and secured debts. Although recently I was able to get 10 cents on the dollar for some clients with unsecured debts in a bankruptcy. That was an exception to the rule.

 

[Greg Pack]

Based on what I have seen, The original poster is correct. As it was, Ginsan is no more. The new company purchased the assets from Mercantile bank.

In a letter I saw addressed to the creditors of Ginsan it states: " the companies have ceased all operations. There are no employees left. There are no assets left"

 

[JMMUSTANG]

If Indutrial Vac is out of business Bill might want to take off their advertisement in the upper left hand corner of this page, that says "click here."

 

[pitzerwm]

The new group that bought the assets which included the name are a new legal entity. Same name different company. I doubt if they are foolish enough not to pay this bill.

 

[chadrpalmer]

cant remember if it was this forum or another, but i will reiterate, ivs sucks, in that they cant even produce a display on their vending machine bright enough to read....does ANYONE have a way to make the display brighter? a retrofit? anything, we are losing plenty of money on this fancy new machine, because nobody can read it on a sunny day. a fella from ginsang/ivs doug empie emailed and said he could help with "vending issues" when i emailed him with my issue, and then emailed again, he has never responded...great customer service... while im ranting, lets talk about dilling harris, as well. twice in the last six months weve ordered parts for a fragrance/shampoo combo, both times the original order is jacked up, we call back three weeks later, and then the order is shipped...what a bunch of malarky, if we ran our company like this, it would not last...ahhhhhhh feel better...on the flip side, companies i like customer service from are...siemens water technology, huron valley, and ferrell gas, as well as our local chemical supplier

 

[Kevin Reilly]

Chad you might look at Dixmor's LED-9. It has a dual time read-out and is bright. I don't know what the dimensions are but it's probably workable and worth checking out. They do have a web-site.

 

[Back4More]

How old are the vacs? IVS used to use IDX LTT802 Little Two Timers, least in their combo vacs. If it is IDX, I would contact them and ask for Mike Oliver. He's always helpful.

 

[mac]

Chad is referring to the display on the vending machine. He is quite correct in his description - it is unreadable in even faint sunlight. A really poor choice for a machine designed to be outdoors. It does appear to be an opportunity for someone to design and sell a display.

 

[DOUGLAS EMPIE]

Vend-it Display

Chad,

Bill Pitzer forwarded me you request. I tried e-mail twice but with no success. Please call me direct at 616-735-5641.

cant remember if it was this forum or another, but i will reiterate, ivs sucks, in that they cant even produce a display on their vending machine bright enough to read....does ANYONE have a way to make the display brighter? a retrofit? anything, we are losing plenty of money on this fancy new machine, because nobody can read it on a sunny day. a fella from ginsang/ivs doug empie emailed and said he could help with "vending issues" when i emailed him with my issue, and then emailed again, he has never responded...great customer service... while im ranting, lets talk about dilling harris, as well. twice in the last six months weve ordered parts for a fragrance/shampoo combo, both times the original order is jacked up, we call back three weeks later, and then the order is shipped...what a bunch of malarky, if we ran our company like this, it would not last...ahhhhhhh feel better...on the flip side, companies i like customer service from are...siemens water technology, huron valley, and ferrell gas, as well as our local chemical supplier