Ever heard of GSM Outdoors? They just bought Cold steel.

OrangeBlueOrangeBlue said:
KnifeCenter is doing a sale through Monday night on all in-stock Cold Steel products...

Could be a coincidence, but that seems to me like a liquidation, so I grabbed an SRK and a 4-Max Scout.
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I don't think it's a liquidation sale or that they're trying to clear inventory. I think it is smart business and cashing in on the panic buying.
 
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Posted this in the CS sub-forum as well but...

We have confirmation of RIF's. I called the California number and asked the kid who answered if it was true that there was layoffs. He replied, "everyone". He said he'd be gone soon as well and it was almost over.

Sad times.

Damnit, I didn't think to ask if Lynn addressed them...
 
craytab said:
I was thinking about ordering another Recon 1 since it looks like quality might take a nose dive, I've had two and decided not to keep them for various reasons at the time. Now though, if the company is going to be run like that? Not sure I want to own the product out of principle.
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Well, with the sale at knifecenter, and the double rewards points that will earn me a $20 gift card, and free shipping, and the free worksharp tool thing, I'm going to eat my words here.

Just placed an order for that Recon 1 spear point and also a War Hawk I've been lusting after. Now to source a few replacement handles for the hawk, cuz I'm not relying on the new Sold Steel for anything after the sale.
 
Eli Chaps said:
I don't think it's a liquidation sale or that they're trying to clear inventory. I think it is smart business and cashing in the panic buying.
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Yep, and it is working. Also not bad for us customers. A win win. Folks on the fence about buying something Cold Steel just got pushed over the edge.

Eli Chaps said:
Posted this in the CS sub-forum as well but...

We have confirmation of RIF's. I called the California number and asked the kid who answered if it was true that there was layoffs. He replied, "everyone". He said he'd be gone soon as well and it was almost over.

Sad times.

Damnit, I didn't think to ask if Lynn addressed them...
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That is a shame. Hope Lynn has a good Christmas...

Don't get me wrong, the man deserves to sell what he built and should get credit for all he's done, but there was a better way to go about this.
 
From a business standpoint you want to close the deal prior to 1 JAN. Failing to do that takes you into another tax year. This is common practice, and not unusual. There are a number of songs written about getting laid off at Christmas going back 100 years. And let's face it, California has been running businesses like this out of State as fast as they could.

I've been dealing with Lynn since the mid-80's when he was still running tables on the gun show circuit. Always got good product from him. It's his turn to bow out and enjoy the hard work. Like it or not, one of the reasons CS has prospered is Lynn, and there is no one to take his place.

My concern is that Cold Steel ends up like Pachmayrs or Marbles, bought up, made cheap, run into the ground and then gone. On the other hand would I like to see them do a line of Traditional folders to the quality level of the Ranch Boss? Yes, I would!
 
eisman said:
From a business standpoint you want to close the deal prior to 1 JAN. Failing to do that takes you into another tax year. This is common practice, and not unusual. There are a number of songs written about getting laid off at Christmas going back 100 years.

I've been dealing with Lynn since the mid-80's when he was still running tables on the gun show circuit. Always got good product from him. It's his turn to bow out and enjoy the hard work. Like it or not, one of the reasons CS has prospered is Lynn, and there is no one to take his place.

My concern is that Cold Steel ends up like Pachmayrs or Marbles, bought up, made cheap, run into the ground and then gone. On the other hand would I like to see them do a line of Traditional folders to the quality level of the Ranch Boss? Yes, I would!
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Agreed on the closing before year end, but you can still provision folks for a holdover with minimal tax concerns. The business transfer would be complete and they'd only have to deal a few weeks of a handful of employees taxes.
 
Sharp & Fiery said:
My thoughts too. Wad I miss?
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It was a pretty standard thing -

Lynn and Demko , and some of the old guard are staying with the brand. He went with GSM because he feels they were the best to carry on his and Cold Steel's legacy. He feels that GSM offers better buying power and logistics than Cold Steel has ever had, and that in turn will lead to some exciting projects in the future.

Ends with an apology to the industry and fans who might of thought some of his actions were distasteful over the years.

It was sort of quick and dirty, they might have pulled it to polish it up some.
 
Eli Chaps said:
Agreed on the closing before year end, but you can still provision folks for a holdover with minimal tax concerns. The business transfer would be complete and they'd only have to deal a few weeks of a handful of employees taxes.
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no, you really can't. You have to pay medical, unemployment, inventory tax, property tax, utilities, etc every month. that's another 1/12 of the yearly expenses. For a month when no one works? That's crazy. You can pay a bonus, or if the employment contract has a parachute that needs to be paid, but you do not want to go into another year with anything attached, if only to prevent having to file for the year. Remember businesses have to file quarterly and annually, and that takes time and money.
 
As one who was initially willing to give benefit of the doubt, yes, it's beginning not to look good.

HOWEVER, no offense to Eli, but I will reserve final judgement beyond 'some kid' who answers the phone. There needs to be a little more information fleshed out than that before we start condemning what someone did - or perhaps didn't do.

Eli Chaps said:
It was bugging me so I called back. Same kid. He said they got nothing from Lynn. Just came to work and BAM. Sold and you're out of a job.

I feel bad for them and for all of you are such fans of the brand.
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