Astor and Black Bankrupt

Discussion in 'Classic Menswear' started by Sean McKee, Sep 4, 2013.

  1. Sean McKee

    Sean McKee Well-Known Member

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  2. VinnyMac

    VinnyMac Senior member

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  3. comrade

    comrade Senior member

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    Astor & Black’s five largest creditors are:
    Colorado Department of Revenue, $136,552
    Louisiana Department of Revenue, $118,442
    North Carolina Department of Revenue, $68,409
    BMW Bank of North America, $67,000
    Missouri Department of Revenue, $42,824

    All creditors are unsecured except BMW Bank.

    Looks like someone will be getting a new ride.
     


  4. CousinDonuts

    CousinDonuts Senior member

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    How long ago did Schottenstein sell?
     


  5. Sean McKee

    Sean McKee Well-Known Member

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    It's been a couple years. He still had a seat on the board I understand.
     


  6. MisterFu

    MisterFu Senior member

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  7. MisterFu

    MisterFu Senior member

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    Interesting. Based on all the info and pics from OTCTailor, towards the end, it looks like they were making a pretty decent product after they had been taken over by professional management. Also appears that in the early days they were a pretty sketchy and poorly managed operation that survived on rapid sales growth and slick sales presentation. With slick marketing and a good pitch, rapid revenue growth would have made them an easy sell to the less sophisticated private equity operations out there, of which there are many. Once the PE guys put in some professional management, the mess of quality and customer sat. issues became apparent and I guess the margins collapsed as they attempted to improve the product and customer sat.
     


  8. jrd617

    jrd617 Senior member

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    Last edited: Sep 6, 2013


  9. MisterFu

    MisterFu Senior member

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    At the core was a business model that was fundamentally unsustainable as described (though not as initially operated by the founder). Put simply, once the new management tried to actually deliver on the promise of a high-quality product and actual MTM-level customer service, the margins evaporated and the business proved unsustainable.

    I gotta say though, the whole outing of the dissatisfied customer was truly an outstanding moment (my jaw hit the floor when I read that part of the thread).
     


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