Ch. 7 Bankruptcy Filed 9/6/18

Old employer prior to doing Pelfreybilt full time. Many on here know that Tyler started selling products out of his old employer’s shop (with permission) in Poway.

 

No there were a few from some years ago, but our swing arm and latch design has evolved a lot over the years. I believe his was bushing pivots right on the tail light tubing for the arms and a bolt/wing nut latch, we use a completely different style than that now.

 

And yours has gone through a few updates/changes too.

 

Although not definitive with regards to share ownership, at one point there were two Directors. Satin and Tyler. Later the company was re-organized with only Satin as sole Director. Almost certainly, anyone with any real ownership stake in the company (beyond family) would have been a named Director. That of course does not have anything to do with debt. They could have borrowed $ as a company or individuals.

I strongly suspect S-Corp organization, which means as you imply it is a direct pass through - the owners/directors are the responsible parties.

If I were a lawyer (I'm not) representing clients, I'd be looking into why Tyler was dropped as a Director in April of 2018. The timing is suspect IMO.

Note that there is a previous filing in 2014 with them both as Directors and that it is definitely not registered as an LLC, but as you suggest either a S-Corp or C-Corp. C-Corp is MUCH less likely.

 

I’ve got no stake in the matter, nor have I dealt with them, but it’s surprisingly easy for a small company to end up under water if their sales volume skyrockets quickly. A small company likely does a lot of work on credit.

Hypothetically:

Let’s say I run an imaginary company that builds tool boxes. My distributors for the sheet metal, hinges, and latches are going to extend me a certain amount of credit. Likely on NET 30 terms, which means I’m going to get an invoice for my materials when they ship and have 30 days to pay my distributors.

Now I’ve got 30 days to manufacture, ship things out to my customers, recieve payment from my customers, and get my distributors paid.

Let’s say sales are picking up and I’m constantly riding that credit and dropping orders before my sales guys close deals, in an effort to keep lead times down.

Now I land a giant contract with a hardware store that wants to sell my boxes.

The hardware store drops an order for 1,000,000 units and I may tap out my credit lines ordering my materials. Now I find myself with 30 days to get my distributors paid, but 180 days worth of work to get the shipment out.

The next thing I know, I’m struggling to make payroll, keep the lights on, and get my distributors paid before they send my ass to collections. The whole time the interest is eating me alive and my big need contract customer isn’t going to pay me until the order is complete.

Things snowball fast.

 

Hey, baby.

 

Maybe the new Pelfreybilt will startup again be like they were 6 years ago taking orders and customizing them before they got popular!

 

Did the hardware store give you a deposit/pay in full in advance for those 1,000,000 units?

 

Being a Woman Owned business is a huge advantage to winning govt contracts. Might have something to do with the USAF being named in the list.

 

@RelentlessFab

 

IIRC, I think it had something to do with Tyler’s ex wife and protecting the business. I’m sure some of you know how that shit goes, lol.

 

I mean they are not wrong, the bad PR spooked their investors and ruined their hope of resolving the issue of capital without just closing up shop and losing everything.

 

On a hypothetical, they probably wouldn’t pay in full and the deposit may exhaust itself if the imaginary company can’t spin up production fast enough.

I’m just pointing out that it’s easy for things to snowball. If they indeed landed some government contract as others have hypothesized, it’s hard telling what terms they negotiated of if they were blinded by the potential profit and over-committed.

They definitely produced some nice products that a lot of people liked, and and sold a lot of them. I think it’s likely they grew too fast and lacked the business smarts to control things.

Or it’s a big fat scam. I dunno. Either way it’s unfortunate for many.

 

please dont do this. it didnt go so well last time

 

Lol he said it satirically. As in relentless isn’t bullshitting people with feel good bullshit and instead give some realistic expectations.

 

hey now, dont make it my fault just because I am a relentless customer. Here we go all over again....

 

Can I ask/request that we please keep this about Ch. 7 Bankruptcy Filed 9/6/18 what matters at the current time is how can we get everyone effected a full refund for goods and or services that will never come to fruition. Also those that have reached out to me thank you I'll be emailing you back later tonight.

 

Not to try to take anything away from Relentless but Jerry at BAMF makes a pretty beastly trilogy set of skids. I have one of his first IFS skids and it is indestructible, all 1/4" plate with gussets built in.

 

there is another thread for that