Race Face's Demise - An Insiders' View

You are correct IF the company is public.

Nope. You don't have to be public to have an agreement with your shareholders.

IF investors and other stakeholders support Pollack in a new venture, they'll have to sleep in the bed they've made and shouldn't be surprised with what they get after this unfortunate (and unnecessary) failure.

I would have to assume that the 'good guys/girls' presently in the industry hope this NEVER HAPPENS with this individual again.

If all the allegations are true (and generally when a person does not dispute them you have no other options to believe unfortunately) then this person has ruined himself in this industry for a LONG, LONG time if not forever. One could argue that for the pain/suffering he caused (again, if it is all true) the RF employees/partner groups/investors and customers, not being part of this industry anymore is a very small price to pay.

He potentially made more money (again,if the allegations are true) then some of the RF employees would have made in a lifetime. You would think that there could be a few people/investors looking at him to recoup some losses through the legal system.

How this guy can look at himself in the mirror is beyond me? What his family/friends think of him after this all shakes out in the public eye…..sad - hope the money was worth it to you dude.

One for the Legal Weasels.

Is there a law in BC that states Employees wages are secured debt? Basically the employees wages come out of the bank's share.

http://forums.mtbr.com/showthread.php?t=698720

It's federal program - the Wage Earner's Protection Program Act. The Bankruptcy and Insolvency Act was amended in 2009 such that unpaid wages, vacation pay, commissions, employee source deductions, union dues, and unfunded pension contributions would be assembled under a common claim and granted superpriority, that means they rank higher than the bank's claim (or any other creditor). However the claim rests against the current assets of the company (assets like cash, raw goods, finish inventory, certain investments etc). Claims are limited to (I think) 3 weeks wages and max out at a salary level of $39,000 - so not a whole lot.

Shame on the bank for not reviewing inventory or even asking the question about obsolescence. I am going to bet the reporting/statement quality was too low for what really amounts to be an unsecured operating loan. I can't believe someone just woke up one day and realized that all the old crap in the corner gathering dust isn't marginable inventory.

If any of the article is true then either the internal accountant(s) was or were woefully inadequate, or you had the all-too-often-seen CEO distain for the Controller.

It's federal program - the Wage Earner's Protection Program Act. The Bankruptcy and Insolvency Act was amended in 2009 such that unpaid wages, vacation pay, commissions, employee source deductions, union dues, and unfunded pension contributions would be assembled under a common claim and granted superpriority, that means they rank higher than the bank's claim (or any other creditor). However the claim rests against the current assets of the company (assets like cash, raw goods, finish inventory, certain investments etc).

i thought wepp payouts came from a federal fund, not the estate

it sucks that so many good people lost their job…but 400k/yr for running a 10 mil/yr company doesn't seem out of line to me at all.

It's all about your profit margins and volumes. Giving away parts to Giant at Shimano and SRAM OEM prices doesn't make for a solid business when your costs are higher than the big two.

Anyways, I was really interested in working for Race Face 6-7 yrs ago and interviewed with Pollack 3 times. In the end I thought he was such an a-hole that I really didn't want to work there. I thought maybe he was having bad days during the first 2 interviews but I ended up bailing out of the 3rd interview because this guy gave me the worst feeling about his business.

where's koochdog been lately in this thread?

where's koochdog been lately in this thread?

Maybe heeding your suggestion?

The worst part of this story is that the employees were left hanging with travel expenses and wages unpaid, and only a hope of getting some of the latter.

I think it's easy to criticize people for not noticing things, but from what I can tell Race Face employees were hard-working people, passionate about their product. They extended themselves believing that things were going to come through and now they're out in the cold.

Whether or not it was a deliberate screw-job or just bad business may or may not be known but right now I really feel for the people who worked there. I hope they all manage to come through this OK.

Maybe heeding your suggestion?

LOL, well played sir…

:beer:

Maybe heeding your suggestion?

it's kinda too bad b/c he did have some good input with some of his points.

where's koochdog been lately in this thread?

The snow is starting to melt out here in Onterrible, so he's probably out on the Bruce Trail working on his riding skills.

The snow is starting to melt out here in Onterrible, so he's probably out on the Bruce Trail working on his riding skills.

what's the bruce trail?

what's the bruce trail?

a hiking trail that goes from just north of niagara falls all the way to the bruce peninsula…

what's the bruce trail?

Technical Onterrible riding at it's finest: