By Mark Sanderson, General Manager of GMP, dated Feb 07, 2011
GMP is a solvent company and has NEVER missed a payment on our bank loans in 18 years. This is fact!. However, we are funded by two commercial bank loans that are renewable every three years just like many other business are. Unfortunately, late last year, literally the day before we were to sign our renewal, the FIDC closed and resold our local bank. The new bank as part of their due dilligence and loss/share agreement with the Feds, had all commercial property reappraised. These new appraisals came in lower than a couple of years ago so they do not meet the new ratios now in place to support the current loan. As a result, it appears the bank is not going to renew the loan. So, our problem is not related to our business, sales pace or product quality, but the new banking standards and property values both of which we have no influence over.
Nothing is finalized yet as we are still looking at alternative financing methods, but until this is determined, GMP is forced to make some very hard choices. We did not attend the show in Germany instead dealing with all the things here, but have been assured we can attend next year in the same hall we have been.
We do have a couple of ways forward, so we are not finished by any means. Three years ago we started ACME as a completely stand alone company. This was to focus more on the mid-priced products with GMP going upscale. ACME has done very well and with zero financial issues is completely healthy. We are moving ACME to a great new facility this month and for the time being Mat, Ben and I will be focusing 100% on it. ACME owns current molds, purchased others from GMP, has lease agreements for other manufacturers and is now producing it's own new one. As a result we will have an expanded product line this year. We will also annouce the website hopefully later this week which has a similar feel to GMP, but improved functionality for Safari and Firefox browsers and other obvious improvements. It will also now be the location for Tom's Garage which incorporates some changes based on collector input from last year.
This has been extremely difficult for us. We are a small close knit family trying our best to deal with the hand we have been dealt. Nine families have been affected by this bank issue which is entirely not of our doing and outside of our control, but as of now, ACME can support just five, so four of the GMP family are having to look for new employment, at least for the time being.
It is very easy to focus on our little cars and their small issues, and I understand that they can generate great emotion, but it seems that some fail to remember that making these cars is our sole livelihood. When one of the companies supporting this hobby has issues, it affects numerous real live people and their families too.
We'll be back with more on ACME very soon as well as an update on GMP as progress warrants it.
Zusammengefasst wird ACME (die neue "GMP" Company) wohl einige neue Modelle bringen. Ob noch mal eine der wirklichen GMP Formen (RR/GTX, Camaro und Fairlane) kommt steht wohl in den Sternen.
