S E Shires files for bankruptcy

Discussion in 'Trumpet Discussion' started by trumpetsplus, Apr 19, 2014.

  1. motteatoj

    motteatoj Mezzo Forte User

    Feb 23, 2013
    Tuckahoe, NY
    What upsets me so much about this is what upsets me about all business nowadays...Wall Street.
    Wall Street sets such high expectations of what companies must make, look like, act like, and produce that it is systematically destroying what i consider to be choice and quality (let alone the uncountable damage to people and families.
    Why is Wall Street responsible for this? Because Shires couldn't get loans for less than 20%-40% INTEREST from regular lenders!!!
    Banks wont take 'risks' on things that are not viewed by WS analysts, one investment bank exec makes more in one bonus than Shires needs to stay fluid.

    I work for one of the largest companies in the world, so much of what we do is guided by WS analysts who make decisions based on greed and not what is good for a healthy society. We lay off to simply re-hire to meet analysts suggestions, we don't terminate the people that should be for fear of legal repercussion (a whole other topic and soap box), we price products in a way that does not reflect an appropriate profit, but what we are guided to do. Its all gross.

    I'm not going to camp outside of Wall St (we all saw how that worked), but until we all get less greedy and more caring about society, it will only get worse.

    There is an in-balance in our financial systems, overrun by GREED.
    We need a little Jimmy Stewart to give some lessons in how banks are supposed to work....then again, who would listen...

    <steps off soapbox>
  2. rowuk

    rowuk Moderator Staff Member

    Jun 18, 2006
    Well, I think that there is a different take on this. Having a decent product is not good enough. The right to existence is not a better Bach or Yamaha. Look at what Yamaha did with the Xeno - they created a completely new market niche. Even the Chicago and New York instruments have NOTHING to do with the Bach sound - they still are selling the horns like crazy because they do something special.

    Shires problems do not stem from the lenders. By the time that card is played, it is close to the end anyway. It is just delaying the end. Eastman won't put up with losses either. Companies like Shires do not have the mass to be run on credit - regardless of the interest rate.

    I believe that Shires failed because they are offering too many different types of instruments. With $2-3 million turnover, you can't support manufacturing and R&D for a complete brass line. Something else is "funny" - Sales have grown to about 1000 instruments costing between 3 and 6 grand but turnover was only $2.8 million. The losses were 380K - about 15% - the difference in the interest. This means even with standard credit they make no money.

    Shires could be a great trombone company OR a great trumpet company. It will most likely end up as the high end Eastman and be forced to use some Eastman parts (Valve block for trumpets? Cases?) to bring costs down. That means only the bell, braces and leadpipe would be Shires. It doesn't have to be a bad thing, but it for sure won't be the same thing. What future customers will do is also not clear.

    So, Wall Street is not very benevolent, but that was not Shires problem.
  3. bumblebee

    bumblebee Fortissimo User

    Jan 21, 2010
    Great Southern Land
    Hi Patrick,
    I emailed Shires when I read this news and got a reply back saying production was on a firmer footing after Eastman stepped in. I hope that is continuing.

  4. trumpetsplus

    trumpetsplus Fortissimo User

    Jun 11, 2006
    South Salem, NY
  5. kehaulani

    kehaulani Fortissimo User

    May 14, 2011
    Hawaian homey
    That's a great turn of a phrase. It begs to be a song title. (Billy Joel, maybe?)
  6. TrentAustin

    TrentAustin Fortissimo User

    Oct 28, 2003
    Boston, MA
    bumblebee likes this.
  7. Reedman1

    Reedman1 Piano User

    Sep 5, 2013
    NY, USA
    Cheer up, everybody. Even though the kind of music that calls for lots of brass is now mostly popular with people that play brass, there are still a lot of those, and it only takes one or two prominent players to cause a wave of interest. Play! And remember the saying:

    "Did you want fries with that...?"
  8. rowuk

    rowuk Moderator Staff Member

    Jun 18, 2006
    Your business model is different! Your on line musings also show that you are continually thinking about what your horns do. If your goal was 1000 instruments a month, things would have to change. Do you need 50 hours for a horn or do you reduce this by buying things like valve clusters? Would your business be sustainable by someone else?

Share This Page