This is a Wall Street Journal article (dated 15 June) posted on another site. Looks like somebody's still trying to salvage the company:
NEW HAVEN, Conn. -- Few industrial names are as woven into U.S. history as Winchester.
It was the rifle that won the West. Jesse James swore by his. So did Buffalo Bill Cody and Annie Oakley and Sitting Bull. It was also the rifle that won the Saturday matinee. Jimmy Stewart starred in a movie about one called "Winchester '73," and the lever-action rifle was so ubiquitous in John Wayne's horse operas that a statue of the burly, slow-talking actor stands in the lobby of the gun maker's shuttered factory here.
Now, it has fallen to an unlikely modern-day Winchester fan, Michael H. Blank, a 32-year-old who quit his job as a Merrill Lynch stockbroker, to salvage the venerable company. Despite its glorious past, modern times haven't been kind to the gunsmith. In March the Belgian owners shut down the relatively modern factory built on a site where Winchesters have been made for 140 years, citing a bloated cost structure and slumping sales.
The move has sparked a frantic hunt for a buyer, a debate over what to do with the bronze of Mr. Wayne in the lobby, and a shot of soul-searching by gun owners themselves, who know the value of their Winchesters will soar if the factory closes forever.
Mr. Blank, who is a paid consultant in the search for a buyer, says there's no reason Winchester's U.S. factory has to die as long as there are people like him around. The main reason for slumping sales is that the company was making and marketing the wrong guns, not that there aren't enough people willing to buy them.
"I have 10 Winchester lever-actions," he says, "but if I had 5,000 more, I'd never have enough. By and large, I believe that whoever dies with the most guns, wins." Mr. Blank says the company can thrive again if it goes back to its roots, producing high-quality guns for enthusiasts and collectors like him.
He contends the Belgian owners, Herstal Group, don't have the right vision, pushing, among other things, low-end guns sold through Wal-Mart Stores Inc. Instead, he believes the company should concentrate on the burgeoning market for replicas of historic Winchester models and on upgrading its modern rifles. Today, many replicas, which aren't allowed to bear the Winchester name, are made in Italy and sell for up to $1,200. Those rifles -- with their blued barrels, wood stocks and distinctive levers for cocking the weapon with an unforgettable metallic "cha-chink" sound -- are avidly sought by collectors fascinated by the history of firearms and of the American West.
"If we put out real replicas, and slap on the Winchester name, we'll have the Italians out of the business in three years," Mr. Blank predicts.
Michael Bane, a gun-industry expert and host of the Outdoor Channel's "Shooting Gallery," says Mr. Blank's business model has merit because that's where the growth is in the U.S. rifle market. He notes, for instance, that there's a fast-growing market for "cowboy-action shooting" guns. This is a sport in which people dress up like cowboys, assume cowboy names, and shoot authentic guns. That said, he's not sure it's feasible that such guns can be made cost-effectively in the U.S. "You have issues with unions, you have issues with finding the right skilled workers," he says, not to mention a tough U.S. regulatory climate that many gun makers say adds to their costs.
Many Winchester aficionados grumble that Herstal's actual intent is to shift all Winchester production overseas. The company already makes a few models in Europe and Asia. However, it's not so simple. The Winchester name is owned by St. Louis-based Olin Corp., the conglomerate that has licensed production to a series of owners of the New Haven plant since 1981. The existing license, due to expire next year, as well as a union contract which is still in force, doesn't allow Herstal to move Winchester's best-selling lines out of New Haven.
Then there's the problem of the city. The Winchester plant sits on only a small portion of what was once the original gun factory. Much of the old complex was demolished a decade ago as part of a huge redevelopment project that included millions of dollars worth of government incentives aimed at getting Winchester to stay put. So if the plant closes for good, New Haven wants a partial refund.
Mr. Blank, aided by a Connecticut bankruptcy and reorganization consultant, Workout Solutions Inc., enlisted by the city, was able to broker a settlement that includes an $850,000 payment from Herstal to the city as well as a so-called stand-still agreement that gives more time to find a U.S. buyer. Proposals have to be submitted by June 23, with a closing no later than Sept. 1. Mr. Blank, who hopes to have some part in any deal that would resuscitate the factory, says he's heard from "over a dozen potential bidders," including other U.S. gun producers and private-equity groups.
There are other wildcards. "We still would like a new license with Olin to keep the Winchester name," says Pierre Bourgeois, the Belgian chief executive of Herstal's U.S. Repeating Arms, Winchester's formal name. He notes that negotiations between Herstal and Olin are ongoing and says that after three years of trying to upgrade the plant, he's convinced there's no way to make guns profitably in New Haven. Herstal also makes weapons in South Carolina, but that factory is mainly dedicated to military machine guns.
It's clear from the main lobby that this isn't just another failing factory. There's a towering bronze statue of John Wayne, holding a Winchester, while the American flag hangs from the rafters -- but it's actually two flags hung together to assure that the stars are in the upper left-hand corner when viewed from either side.
"We learned early on that people who come here pay attention to flag protocol," says Paul DeMennato, the plant's facility director.
Even the statue of Mr. Wayne is a sore point. The Belgians would like to take it to Europe for their own corporate weapons museum, which already includes an extensive collection of Winchester memorabilia. But Mr. Blank says that "would probably cause a riot," noting that "many interested parties" have inquired about the fate of the statue. If all goes well with the auction, he says, it should stay put.
For collectors, the shutdown of New Haven is a two-edged sword. David Bichrest, executive secretary of the Winchester Arms Collectors Association, says the factory shutdown upset many collectors, who view the guns as American icons. "Everyone is really hoping it can stay in this country," he says. But they've also seen prices surge. Winchesters made before 1964, when the factory made significant changes in its production methods, were already considered premium collectibles. "The shutdown really enhances the value of the post-'64 firearms," he says.
Indeed, David Kennedy -- curator of the Cody Firearms Museum in Cody, Wyo., which houses the world's largest collection of Winchesters and has custody of some of the company archives -- says he's been swamped with requests for so-called factory letters since the shutdown, indicating increased trading activity in the rifles. These letters are official documents prepared by the museum that list all the information from the factory about a particular gun, including the date it was shipped from the factory and any customization that occurred, such as special engraving. Old Winchesters can range in value from $500 to $1 million, he notes.
"But it's bittersweet," he adds. "The tradition in many people's minds is that Winchester is the gun that won the West."
Oliver F. Winchester, a Connecticut shirt maker, began making Winchesters in New Haven in 1866, spearheading the development of rifles that allowed hunters, soldiers, outlaws and, of course, cowboys and Indians to squeeze off multiple shots without having to stop to reload. Hence the term "repeating" rifle.
The weapons were a hit not just on America's western frontier. Stephen Murray, a gun dealer in Melbourne, Australia, says Winchester has a dedicated fan base there as well. "During the same period as your western expansion in the U.S., our Outback was opening up, and Winchester was the preferred rifle," says Mr. Murray, whose own collection includes about 25 of them.
In some ways, Winchester's historic nature has worked against finding buyers, says Mr. Blank. News reports on the company's woes often include pictures that show an aging complex of sprawling factory buildings. Winchester once sprawled over a huge tract, and employed more than 19,000 workers during World War II. However, the plant being sold was actually opened in 1992 on a small slice of the former Winchester site. It employed only 186 when it closed.
Hoping to project a better image, Mr. Blank enlisted a Yale film student to make a short film showing the modern facility, which is now part of the sales package. "People need to see that this place is modern," says Mr. Blank. "It's not a wreck."
NEW HAVEN, Conn. -- Few industrial names are as woven into U.S. history as Winchester.
It was the rifle that won the West. Jesse James swore by his. So did Buffalo Bill Cody and Annie Oakley and Sitting Bull. It was also the rifle that won the Saturday matinee. Jimmy Stewart starred in a movie about one called "Winchester '73," and the lever-action rifle was so ubiquitous in John Wayne's horse operas that a statue of the burly, slow-talking actor stands in the lobby of the gun maker's shuttered factory here.
Now, it has fallen to an unlikely modern-day Winchester fan, Michael H. Blank, a 32-year-old who quit his job as a Merrill Lynch stockbroker, to salvage the venerable company. Despite its glorious past, modern times haven't been kind to the gunsmith. In March the Belgian owners shut down the relatively modern factory built on a site where Winchesters have been made for 140 years, citing a bloated cost structure and slumping sales.
The move has sparked a frantic hunt for a buyer, a debate over what to do with the bronze of Mr. Wayne in the lobby, and a shot of soul-searching by gun owners themselves, who know the value of their Winchesters will soar if the factory closes forever.
Mr. Blank, who is a paid consultant in the search for a buyer, says there's no reason Winchester's U.S. factory has to die as long as there are people like him around. The main reason for slumping sales is that the company was making and marketing the wrong guns, not that there aren't enough people willing to buy them.
"I have 10 Winchester lever-actions," he says, "but if I had 5,000 more, I'd never have enough. By and large, I believe that whoever dies with the most guns, wins." Mr. Blank says the company can thrive again if it goes back to its roots, producing high-quality guns for enthusiasts and collectors like him.
He contends the Belgian owners, Herstal Group, don't have the right vision, pushing, among other things, low-end guns sold through Wal-Mart Stores Inc. Instead, he believes the company should concentrate on the burgeoning market for replicas of historic Winchester models and on upgrading its modern rifles. Today, many replicas, which aren't allowed to bear the Winchester name, are made in Italy and sell for up to $1,200. Those rifles -- with their blued barrels, wood stocks and distinctive levers for cocking the weapon with an unforgettable metallic "cha-chink" sound -- are avidly sought by collectors fascinated by the history of firearms and of the American West.
"If we put out real replicas, and slap on the Winchester name, we'll have the Italians out of the business in three years," Mr. Blank predicts.
Michael Bane, a gun-industry expert and host of the Outdoor Channel's "Shooting Gallery," says Mr. Blank's business model has merit because that's where the growth is in the U.S. rifle market. He notes, for instance, that there's a fast-growing market for "cowboy-action shooting" guns. This is a sport in which people dress up like cowboys, assume cowboy names, and shoot authentic guns. That said, he's not sure it's feasible that such guns can be made cost-effectively in the U.S. "You have issues with unions, you have issues with finding the right skilled workers," he says, not to mention a tough U.S. regulatory climate that many gun makers say adds to their costs.
Many Winchester aficionados grumble that Herstal's actual intent is to shift all Winchester production overseas. The company already makes a few models in Europe and Asia. However, it's not so simple. The Winchester name is owned by St. Louis-based Olin Corp., the conglomerate that has licensed production to a series of owners of the New Haven plant since 1981. The existing license, due to expire next year, as well as a union contract which is still in force, doesn't allow Herstal to move Winchester's best-selling lines out of New Haven.
Then there's the problem of the city. The Winchester plant sits on only a small portion of what was once the original gun factory. Much of the old complex was demolished a decade ago as part of a huge redevelopment project that included millions of dollars worth of government incentives aimed at getting Winchester to stay put. So if the plant closes for good, New Haven wants a partial refund.
Mr. Blank, aided by a Connecticut bankruptcy and reorganization consultant, Workout Solutions Inc., enlisted by the city, was able to broker a settlement that includes an $850,000 payment from Herstal to the city as well as a so-called stand-still agreement that gives more time to find a U.S. buyer. Proposals have to be submitted by June 23, with a closing no later than Sept. 1. Mr. Blank, who hopes to have some part in any deal that would resuscitate the factory, says he's heard from "over a dozen potential bidders," including other U.S. gun producers and private-equity groups.
There are other wildcards. "We still would like a new license with Olin to keep the Winchester name," says Pierre Bourgeois, the Belgian chief executive of Herstal's U.S. Repeating Arms, Winchester's formal name. He notes that negotiations between Herstal and Olin are ongoing and says that after three years of trying to upgrade the plant, he's convinced there's no way to make guns profitably in New Haven. Herstal also makes weapons in South Carolina, but that factory is mainly dedicated to military machine guns.
It's clear from the main lobby that this isn't just another failing factory. There's a towering bronze statue of John Wayne, holding a Winchester, while the American flag hangs from the rafters -- but it's actually two flags hung together to assure that the stars are in the upper left-hand corner when viewed from either side.
"We learned early on that people who come here pay attention to flag protocol," says Paul DeMennato, the plant's facility director.
Even the statue of Mr. Wayne is a sore point. The Belgians would like to take it to Europe for their own corporate weapons museum, which already includes an extensive collection of Winchester memorabilia. But Mr. Blank says that "would probably cause a riot," noting that "many interested parties" have inquired about the fate of the statue. If all goes well with the auction, he says, it should stay put.
For collectors, the shutdown of New Haven is a two-edged sword. David Bichrest, executive secretary of the Winchester Arms Collectors Association, says the factory shutdown upset many collectors, who view the guns as American icons. "Everyone is really hoping it can stay in this country," he says. But they've also seen prices surge. Winchesters made before 1964, when the factory made significant changes in its production methods, were already considered premium collectibles. "The shutdown really enhances the value of the post-'64 firearms," he says.
Indeed, David Kennedy -- curator of the Cody Firearms Museum in Cody, Wyo., which houses the world's largest collection of Winchesters and has custody of some of the company archives -- says he's been swamped with requests for so-called factory letters since the shutdown, indicating increased trading activity in the rifles. These letters are official documents prepared by the museum that list all the information from the factory about a particular gun, including the date it was shipped from the factory and any customization that occurred, such as special engraving. Old Winchesters can range in value from $500 to $1 million, he notes.
"But it's bittersweet," he adds. "The tradition in many people's minds is that Winchester is the gun that won the West."
Oliver F. Winchester, a Connecticut shirt maker, began making Winchesters in New Haven in 1866, spearheading the development of rifles that allowed hunters, soldiers, outlaws and, of course, cowboys and Indians to squeeze off multiple shots without having to stop to reload. Hence the term "repeating" rifle.
The weapons were a hit not just on America's western frontier. Stephen Murray, a gun dealer in Melbourne, Australia, says Winchester has a dedicated fan base there as well. "During the same period as your western expansion in the U.S., our Outback was opening up, and Winchester was the preferred rifle," says Mr. Murray, whose own collection includes about 25 of them.
In some ways, Winchester's historic nature has worked against finding buyers, says Mr. Blank. News reports on the company's woes often include pictures that show an aging complex of sprawling factory buildings. Winchester once sprawled over a huge tract, and employed more than 19,000 workers during World War II. However, the plant being sold was actually opened in 1992 on a small slice of the former Winchester site. It employed only 186 when it closed.
Hoping to project a better image, Mr. Blank enlisted a Yale film student to make a short film showing the modern facility, which is now part of the sales package. "People need to see that this place is modern," says Mr. Blank. "It's not a wreck."
:
I'd stock the whole product line in my shop if I could just go across the street and geth 'em.