MAtrix is closing it’s doors....

[getitdaily]

Sounds like they don't have positive cash flow and the bank is potentially going to default. Hard position to be in and you might see them file soon.

 

That's a lot of speculation. Banks typically review lines of credit, especially if it's at it's limit, below current interest rates or the business is behind in payments. So long as Matrix didn't default, there is the potential that they can secure another line of credit (though likely at a higher interest rate) from the same or another source. Matrix may have some Accounts Receivable issues given what's happened recently with GolfSmith and Adidas selling off Taylor Made.

 

If they can't pay their current line of credit then only a fool will give them another line of credit. A sound business plan doesn't include surviving on lines of credit. Sure, you have to be properly capitalized, but the more of you earnings going to interest the more trouble you're in. The shaft industry segment has long been in need of consolidation. There are about 8 manufacturers who all make high dollar shafts. Wouldn't surprise me to see this happen to a couple other companies.

[J13]

Sounds like they don't have positive cash flow and the bank is potentially going to default. Hard position to be in and you might see them file soon.

 

That's a lot of speculation. Banks typically review lines of credit, especially if it's at it's limit, below current interest rates or the business is behind in payments. So long as Matrix didn't default, there is the potential that they can secure another line of credit (though likely at a higher interest rate) from the same or another source. Matrix may have some Accounts Receivable issues given what's happened recently with GolfSmith and Adidas selling off Taylor Made.

 

If they can't pay their current line of credit then only a fool will give them another line of credit. A sound business plan doesn't include surviving on lines of credit. Sure, you have to be properly capitalized, but the more of you earnings going to interest the more trouble you're in. The shaft industry segment has long been in need of consolidation. There are about 8 manufacturers who all make high dollar shafts. Wouldn't surprise me to see this happen to a couple other companies.

 

Banks only give businesses money when they don't need it.

[Mr. Grumpy]

It may be for restructuring purposes, but what the hell do I know, I teach art. Loosing stock shaft option with manufactures has to be a huge hit. Like another poster said, they aren't in much off the rack. They are an option on some at no up charge, but that means custom ordering.

 

I liked the black tie in the Cobra.. Wonder if they will need to dump stock.. Hmm....

[cgasucks]

To clarify the post written earlier today, Matrix is not closing. Certainly these past several years have been challenging for most of us in the golf industry and we are no different. We do find ourselves in a position where we must work with our bank to ensure that their future needs are met as well as ours. In this, the aforementioned order pertains only to our doors being closed today and possibly Monday as we work with our bank on a mandated comprehensive inventory count and work together to facilitate a collaborative strategy to meet our mutual needs moving forward. That being said, we are bullish about our new MARU and Altus Tour line of products and look forward to continuing to provide great product to all of our customers for many years to come."

 

Sincerely,

 

Chris Elson

President

 

Chris,

Thank you for your transparency and forthright information.

 

Best of luck with Matrix and here's to the tides turning in a positive way.

 

Yeah,not sure if you`re thinking this or not but just to be totally clear I am not Chris Elson. I just copied and pasted what he wrote.

 

Jeff your fav still the Axe tour?

 

Put the statement in quotes and italics next time....I thought you were Chris myself as well...

[the bishop]

To clarify the post written earlier today, Matrix is not closing. Certainly these past several years have been challenging for most of us in the golf industry and we are no different. We do find ourselves in a position where we must work with our bank to ensure that their future needs are met as well as ours. In this, the aforementioned order pertains only to our doors being closed today and possibly Monday as we work with our bank on a mandated comprehensive inventory count and work together to facilitate a collaborative strategy to meet our mutual needs moving forward. That being said, we are bullish about our new MARU and Altus Tour line of products and look forward to continuing to provide great product to all of our customers for many years to come."

 

Sincerely,

 

Chris Elson

President

 

Chris,

Thank you for your transparency and forthright information.

 

Best of luck with Matrix and here's to the tides turning in a positive way.

 

Yeah,not sure if you`re thinking this or not but just to be totally clear I am not Chris Elson. I just copied and pasted what he wrote.

 

Jeff your fav still the Axe tour?

 

Put the statement in quotes and italics next time....I thought you were Chris myself as well...

Someone thought Kymar was prez of Matrix? Well I never....

[trhode]

There was a huge lawsuit between Matrix and Veylix regarding the Velox shafts. Might be something there from a financial standpoint.

[KYMAR]

To clarify the post written earlier today, Matrix is not closing. Certainly these past several years have been challenging for most of us in the golf industry and we are no different. We do find ourselves in a position where we must work with our bank to ensure that their future needs are met as well as ours. In this, the aforementioned order pertains only to our doors being closed today and possibly Monday as we work with our bank on a mandated comprehensive inventory count and work together to facilitate a collaborative strategy to meet our mutual needs moving forward. That being said, we are bullish about our new MARU and Altus Tour line of products and look forward to continuing to provide great product to all of our customers for many years to come."

 

Sincerely,

 

Chris Elson

President

 

Chris,

Thank you for your transparency and forthright information.

 

Best of luck with Matrix and here's to the tides turning in a positive way.

 

Yeah,not sure if you`re thinking this or not but just to be totally clear I am not Chris Elson. I just copied and pasted what he wrote.

 

Jeff your fav still the Axe tour?

 

Put the statement in quotes and italics next time....I thought you were Chris myself as well...

Someone thought Kymar was prez of Matrix? Well I never....

 

Seriously! Come on people.

[storm3]

Sounds like they don't have positive cash flow and the bank is potentially going to default. Hard position to be in and you might see them file soon.

 

That's a lot of speculation. Banks typically review lines of credit, especially if it's at it's limit, below current interest rates or the business is behind in payments. So long as Matrix didn't default, there is the potential that they can secure another line of credit (though likely at a higher interest rate) from the same or another source. Matrix may have some Accounts Receivable issues given what's happened recently with GolfSmith and Adidas selling off Taylor Made.

 

The content of the official statement (along with the fact that this is even being addressed publicly) does not instill confidence, thus speculation leaning towards the death of Matrix is more plausible than a business as usual downplay. A bank mandating inventory generally points to default decision time approaching.

 

Also, any Golfsmith receivables at this point are no longer valid receivables, they should be written off as a loss.

[Bushwood Country Club]

I never knew we had so many finance experts on WRX!

 

A bank mandated inventory means that the bank is lending money with inventory as collateral, and wants to ensure that the Company is not holding a lot of obsolete or aged inventory. The inventory will be performed by an independent 3rd party - thus, the Company has to suspend operations during the physical count of inventory.

 

While this isn't a positive sign, it also isn't necessarily a death knell.

 

Also;

- its incredibly common for manufacturers to use a LOC to provide cash flow for the business. It's no sign of problems in and of itself.

- the bank wants nothing more than for the Company to repay their debts. The don't want to own a bunch of shafts.

- the comments about buying Matrix on the cheap come off as pretty scavenger-like.

 

Let's see how this plays out

[storm3]

I never knew we had so many finance experts on WRX!

 

A bank mandated inventory means that the bank is lending money with inventory as collateral, and wants to ensure that the Company is not holding a lot of obsolete or aged inventory. The inventory will be performed by an independent 3rd party - thus, the Company has to suspend operations during the physical count of inventory.

 

While this isn't a positive sign, it also isn't necessarily a death knell.

 

Also;

- its incredibly common for manufacturers to use a LOC to provide cash flow for the business. It's no sign of problems in and of itself.

- the bank wants nothing more than for the Company to repay their debts. The don't want to own a bunch of shafts.

- the comments about buying Matrix on the cheap come off as pretty scavenger-like.

 

Let's see how this plays out

 

As KYMAR eluded, details are unfolding on a competing forum. Initial report based on employee interviews is court ordered receivership.

 

As previously stated, the lack of downplay in official statement does not paint a pretty picture. If this was simply a nonchalant financial formality, it is doubtful that anything would have been made public.

[KYMAR]

I never knew we had so many finance experts on WRX!

 

A bank mandated inventory means that the bank is lending money with inventory as collateral, and wants to ensure that the Company is not holding a lot of obsolete or aged inventory. The inventory will be performed by an independent 3rd party - thus, the Company has to suspend operations during the physical count of inventory.

 

While this isn't a positive sign, it also isn't necessarily a death knell.

 

Also;

- its incredibly common for manufacturers to use a LOC to provide cash flow for the business. It's no sign of problems in and of itself.

- the bank wants nothing more than for the Company to repay their debts. The don't want to own a bunch of shafts.

- the comments about buying Matrix on the cheap come off as pretty scavenger-like.

 

Let's see how this plays out

 

I never knew we had another finance expert on WRX!

[Bushwood Country Club]

Now you know...

[KYMAR]

Now you know...

 

....exactly zero more than I knew before you posted.

 

"your speculation is terrible and worthy of criticism but, mine is awesome"

 

Come on now.

[Bushwood Country Club]

My comments weren't speculation, professor. That's real world stuff.

[storm3]

My comments weren't speculation, professor. That's real world stuff.

 

Still speculation unless you are actually involved in this particular situation...

 

Also, many of the other speculative posts are real world stuff as well. A primary secured creditor will do what it takes to maximize the recovery of what is owed and if getting a judgement and having a receiver takeover to wind down the company is the best chance, that is the route they will pursue. I think we can agree that if this situation was no big deal we wouldn't have heard nor be talking about it...

[nsxguy]

My comments weren't speculation, professor. That's real world stuff.

 

Still speculation unless you are actually involved in this particular situation...

 

 

What was he speculating about ? I must have missed it.

[Colej]

Maybe selling $1000 shafts wasn't a good idea?

[Thayneil]

Maybe selling $1000 shafts wasn't a good idea?

 

they would have given away way more than they sold?

[KYMAR]

My comments weren't speculation, professor. That's real world stuff.

 

You're right. Thanks for enlightening us about the real world business intricacies such as "Banks just want to get paid" and "banks don't want a bunch of golf shafts" Seriously, you're the Tom WIshon of finance around here. Professor.

[autronicdsm]

Dang, I was just tossing an idea around of trying a TPHDe in my 3W :(

[autronicdsm]

Maybe selling $1000 shafts wasn't a good idea?

 

Those were made to order... probably

[J13]

I never knew we had so many finance experts on WRX!

 

A bank mandated inventory means that the bank is lending money with inventory as collateral, and wants to ensure that the Company is not holding a lot of obsolete or aged inventory. The inventory will be performed by an independent 3rd party - thus, the Company has to suspend operations during the physical count of inventory.

 

While this isn't a positive sign, it also isn't necessarily a death knell.

 

Also;

- its incredibly common for manufacturers to use a LOC to provide cash flow for the business. It's no sign of problems in and of itself.

- the bank wants nothing more than for the Company to repay their debts. The don't want to own a bunch of shafts.

- the comments about buying Matrix on the cheap come off as pretty scavenger-like.

 

Let's see how this plays out

 

If the bank is going to lend money they will want more then just a physical inventory. A sound business plan will need to accompany that inventory count and even then a bank might say no thanks. It's never easy when people lose jobs but golf is shrinking and there are more shaft companies then ever.

[Colej]

Maybe selling $1000 shafts wasn't a good idea?

 

Those were made to order... probably

 

I don't think it works that way....

[TollBros]

It honestly doesn't surprise me. When I was a college player, they were the class of the industry, making great and continuously innovative products. The guy who really put them on the map left on bad terms and after they rode out the last product cycle or two that he had set up, it was all downhill. They still make a decent product, but they are no longer considered the innovators or Pinnacle of the industry. When that JC dude left it was the worst thing that could have happened to them. They should give the man a call and beg him to come back to save them.

[trhode]

He's definitely doing his happy dance right now.

[nova6868]

Maybe selling $1000 shafts wasn't a good idea?

 

they would have given away way more than they sold?

 

I'm pretty sure most shaft companies have this business model. The shafts only cost them $10-$20 to make, they seed the product all over the professional golf world to get exposure, then turn around and retail the shaft for $400+.

 

Hey, whatever works for them. I guess I'm just a little jaded about the business model. I like Matrix, but I also thought their $1000 shafts were just ridiculous.

[nsxguy]

I never knew we had so many finance experts on WRX!

 

A bank mandated inventory means that the bank is lending money with inventory as collateral, and wants to ensure that the Company is not holding a lot of obsolete or aged inventory. The inventory will be performed by an independent 3rd party - thus, the Company has to suspend operations during the physical count of inventory.

 

While this isn't a positive sign, it also isn't necessarily a death knell.

 

Also;

- its incredibly common for manufacturers to use a LOC to provide cash flow for the business. It's no sign of problems in and of itself.

- the bank wants nothing more than for the Company to repay their debts. The don't want to own a bunch of shafts.

- the comments about buying Matrix on the cheap come off as pretty scavenger-like.

 

Let's see how this plays out

 

If the bank is going to lend money they will want more then just a physical inventory. A sound business plan will need to accompany that inventory count and even then a bank might say no thanks. It's never easy when people lose jobs but golf is shrinking and there are more shaft companies then ever.

 

Watch out for the incoming snark. The angry clown is still around.

[Golfspinner]

Matrix made deals with OEM companies to supply iron shafts and other stock shafts by the ten's of thousands for a pennies profit per shaft. Then they did some batches incorrectly and had to fix it. Cost them. This has been in the works for months. A few key people left this year.

[Bushwood Country Club]

Get some professional help for your issues dude. I made no speculations / just explained some facts about why a lender wants an inventory done. Go find someone else to troll..

[hardcaliber]

It honestly doesn't surprise me. When I was a college player, they were the class of the industry, making great and continuously innovative products. The guy who really put them on the map left on bad terms and after they rode out the last product cycle or two that he had set up, it was all downhill. They still make a decent product, but they are no longer considered the innovators or Pinnacle of the industry. When that JC dude left it was the worst thing that could have happened to them. They should give the man a call and beg him to come back to save them.

 

The high end shaft segment seems so saturated and tough to compete in, I definitely agree with the earlier poster who stated consolidation is on the way.

 

Just about everyone is using the same resin (T1100, nanoalloy, etc.). Everyone has the same product lines more or less (high launch, low launch, etc.). Heck, half the companies even use the same color schemes to differentiate performance categories (blue, white, etc.) The companies that aren't Japanese seem to want to use fake japanese names or graphics to get in on the magic fairy dust marketing.

 

Really no way to differentiate these products as a consumer anymore, so it's all down to marketing. Who is tiger using? Who has a 100 page thread on WRX? More often than not, the thread is really long because the company is giving away free stuff to generate posts.

 

I've become addicted to shafts recently and from my research there are two companies that stand out to me in some way. MRC, because they have some unique materials such as boron tip, kevlar, titanium wires. Also project x, because the hand crafted in the US thing is appealing to me. Even then, I'm really bending over backwards to find differentiating factors.