LCM going down....

[Magic Medicine]

Boat dealerships as stand alone businesses are not ideal anymore.

You really need service and storage revenue generation to complete your business model. Boat sales are solely based on volume and like realtors right now if you can't sell you don't make any money. Service/Storage are still necessary whether or not the customer likes it or can afford it. Service can be somewhat delayed but if the boat needs a repair and the owner still wants to use it then he/she needs to pay to fix it. Storage is great (particularly rack storage) since the boat is hostage most of the time if the owner doesn't own a truck/trailer to get it out of there to avoid paying the monthly rate.

Service is what pays the bills and keeps the doors open. When I was working at the local Sea Ray dealership 10 years ago they brought in over $1 mil in revenue just in winter storage.

[cigdaze]

To keep this on track and to dispel any further conjecture, I'll quote the following:

Marine Retailer Seeks Reorganization

Somerset, KY (July 19, 2009) – Lake Cumberland Marine, LLC , one of the World’s largest Marine retailers, reacted to ongoing floor plan and banking difficulties by filing a voluntary petition under Chapter 11 of the Bankruptcy Code on July 19, 2009, in the U.S. Bankruptcy Court , Eastern District of Kentucky. Given the havoc that has gripped our global economy, banks have made a major exodus from the recreational lending arena at a staggering rate. The company’s cash position was severely affected by the loss of these credit lines. It is against this economic backdrop and unprecedented credit crisis that Lake Cumberland Marine has encountered a need to file for Chapter 11 reorganization. The company sees protection under the court petition as the most viable option to continue to confidently provide its customers with the same high level of sales and service that they have come to expect.


Incorporated in 1995, Lake Cumberland Marine, LLC quickly developed a niche for high quality watercraft and high performance boats. From 1995 through 2009, Lake Cumberland Marine, LLC has diversified its inventory to include even the most exotic powerboats and mega yachts. Through all the years of hard work, dedication to quality and exemplary customer service, Lake Cumberland Marine has developed a reputation for providing the highest quality to a vast clientele list all over the world.


Lake Cumberland Marine has retained L.S. Associates, a highly reputable management team from Louisville, KY, to develop a reorganization plan that will enable LCM to preserve its product offerings, current vendor and customer relationships. While working through this process, Randy and Von Hartmann, Managing Members, stated that the company’s clients can confidently anticipate a continued guarantee of quality products and superior sales and service as Lake Cumberland Marine, LLC moves forward. Sales and service operations remain at the same location, 105 Collins Avenue Somerset, KY. The company will be represented in these proceedings by Taft A. McKinstry of Fowler, Measel & Bell, LLP in Lexington, Kentucky.



Please contact Randy Hartmann if you have any questions. You may also want to visit our website at www.lakecumberlandmarine.com . As normal, we have a great selection of new and pre-owned powerboats.

See Here:
http://www.seriousoffshore.com/forum...ead.php?t=8741

[cigdaze]

Public Record info:

Lake Cumberland Marine, LLC Files For Chapter 11
# Debtor Name: Lake Cumberland Marine, LLC
# Year Filed: 2009
# Jurisdiction: United States Bankruptcy Court / Eastern District of Kentucky
# Asset Size: 10,000,000 to 100,000,000
# Case Number: 09-61089
# Industry: Retail, Marine

[Geronimo36]

Boat dealerships as stand alone businesses are not ideal anymore.

You really need service and storage revenue generation to complete your business model. Boat sales are solely based on volume and like realtors right now if you can't sell you don't make any money. Service/Storage are still necessary whether or not the customer likes it or can afford it. Service can be somewhat delayed but if the boat needs a repair and the owner still wants to use it then he/she needs to pay to fix it. Storage is great (particularly rack storage) since the boat is hostage most of the time if the owner doesn't own a truck/trailer to get it out of there to avoid paying the monthly rate.

I'm gonna have to go ahead and agree with you on that!

Having friends who own and run marina's and dealerships I can attest that is true... And those that can't pay their bills get the boat repoed by the marina and after a certain period of time (I don't remember how long), the marina takes ownership, it's like a salvage right or something... Either that or the owner can't afford to pay the back-storage and they have to give the boat up. It's very sad to see but it happens more than you think.

Was just talking to a marina owner this week and the sales office (seperate company who is housed at the marina) is slow so they're 1099'ing all their riggers... which for the past say 10 yrs were all employee's... No sales to support the salaries...

The marina will always have a revenue stream (storage) so even if service revenue is down they can just trim fat when need be.

[Dreamer]

So are you going to buy something, or just talk about it?

ive been BOATING on my 28ss for over a year.... not building a 28ss for over a year

[Tony]

perfection takes time.

[Outdrive Man]

a couple of these boats are at the cedar point show this weekend

[LEOPAJM]

ive been BOATING on my 28ss for over a year.... not building a 28ss for over a year

Ouch !

[WMF]

Service is what pays the bills and keeps the doors open. When I was working at the local Sea Ray dealership 10 years ago they brought in over $1 mil in revenue just in winter storage.

100% correct!!! with out service, I would have no business at all!!! sales are way down!! but service is up! I will winterize and store over 400 PWC's and Jetboat this year!!

[fund razor]

ive been BOATING on my 28ss for over a year.... not building a 28ss for over a year

Yours will be sweet when its done though.

[RUNNINTHERIVER]

you mean someone is talking negative about Randy and the thread has not been pulled?

No thread should be pulled when facts are presented properly. Its news, thats all.
The best source of info is court documents.

Can't wait.

[OneBadInjun]

Boat dealerships as stand alone businesses are not ideal anymore.

You really need service and storage revenue generation to complete your business model. Boat sales are solely based on volume and like realtors right now if you can't sell you don't make any money. Service/Storage are still necessary whether or not the customer likes it or can afford it. Service can be somewhat delayed but if the boat needs a repair and the owner still wants to use it then he/she needs to pay to fix it. Storage is great (particularly rack storage) since the boat is hostage most of the time if the owner doesn't own a truck/trailer to get it out of there to avoid paying the monthly rate.

Jupiter, This has been the case for the last 30 years, nothing new.

[Bgchuby01]

I have a friend that wired money to randy for a boat last week and randy so far has refused to let the transporter pick up the boat. The buyer has contacted an attorney and called the sheriff yesterday to get what he paid for. Randy keeps coming up with excuses of why he can not release the boat even though he confirms that he has received the funds in full. I find it funny that randy had him wire the money to an account that did not say LCM on it. I hope the best for my friend. When he sent the money he did not know Randy was in BK and now he is worried if he will ever get the title to the boat or trailer. Or even get the boat.

[RUNNINTHERIVER]

I have a friend that wired money to randy for a boat last week and randy so far has refused to let the transporter pick up the boat. The buyer has contacted an attorney and called the sheriff yesterday to get what he paid for. Randy keeps coming up with excuses of why he can not release the boat even though he confirms that he has received the funds in full. I find it funny that randy had him wire the money to an account that did not say LCM on it. I hope the best for my friend. When he sent the money he did not know Randy was in BK and now he is worried if he will ever get the title to the boat or trailer. Or even get the boat.

These are the kinds of posts that are not good. Post something thats not hearsay.

BTW.

The court documents that I referred to, that I cant wait for, a few posts back, are yours.

[Bgchuby01]

This is NOT hearsay, I was on the phone with him all this week and he is getting nervous that he may not get the boat he paid for. I have also talked personally to the transporter that is there in somerset that is being refused to load the boat. I will be talking to him later today to find out the lastest saga in his battle. What worries me for him is that Randy instructed him to wire the money to an account that is not under an LCM name. I hope that it is to the bank trustee so that he gets his boat and paperwork

[Bgchuby01]

The reason I made that reply in this thread about it being pulled is that about 3 months ago I added a reply to a thread about Randy's problems and I guess someone thought it was a little too personal even though it also was fact.

[cigdaze]

We didn't pull this one because thus far we've been discussing factual matters in a cordial fashion. As long as it stays that way it will continue. This is about LCM, the the bankruptcy, and the boats heading to NL. We need not get into personal matters.

And regardless of how close your are to this friend of yours, and how truthful your story may or may not be, the bottom line is that it IS hearsay. That's the definition of hearsay; second-hand information. Unless he comes on here personally, it will still be hearsay.

[paston1]

Have a close friend waiting for a title to a pontoon boat bought at LCM back in July before their BK. Not hearsay, hard honest fact

[RUNNINTHERIVER]

I have a friend that wired money to randy for a boat last week and randy so far has refused to let the transporter pick up the boat. The buyer has contacted an attorney and called the sheriff yesterday to get what he paid for. Randy keeps coming up with excuses of why he can not release the boat even though he confirms that he has received the funds in full. I find it funny that randy had him wire the money to an account that did not say LCM on it. I hope the best for my friend. When he sent the money he did not know Randy was in BK and now he is worried if he will ever get the title to the boat or trailer. Or even get the boat.

This is NOT hearsay, I was on the phone with him all this week and he is getting nervous that he may not get the boat he paid for. I have also talked personally to the transporter that is there in somerset that is being refused to load the boat. I will be talking to him later today to find out the lastest saga in his battle. What worries me for him is that Randy instructed him to wire the money to an account that is not under an LCM name. I hope that it is to the bank trustee so that he gets his boat and paperwork

Your friend sent money to a company name he didnt recognize last week.
LCM problems have been common knowledge for weeks.

And this good friend of yours isnt using you to transport the boat.

Curious.

[Bgchuby01]

Yes now that the boat was finally released today my driver is going into somerset to pick it up and bring it to the new owner. As for Randy's problems he did not know about them and had only heard good things.