Re: Another one bites the dust

Hi Terence,
Would you please expand on your "Bad Management"
comment. I am in NYC so have no dog in this nor do I know
any of the principals. I just seek knowledge.
I myself closed a Big Iron facility in January of 2000
This was a direct result of the internet bubble. Commercial space
in NYC was bid up and over 50.00 per square foot by
Dot.Com start ups with a ping pong table, a dog, a business plan
and 25,000,000.00 in IPO money and NO PRODUCT. So after being in the same spot for 15 years and at the end of a 15 year lease I was
presented with a 400,000 rent increase. No amount of better management would have changed the landlords position. I was there for
15 years, they owned the building for 18 months. Things happen in business that are somewhat out of the control of management.
Facilities close for a variety of reasons. In ten years from now
all of what we do might be outsourced to China via 1000GB internet
connections being wirelesly piped to the 10th generation Ipad.
Oh that's impossible you say, well I for one, who once
spent 15,000.00 on a pair of 3 gig Avid Rmag drives 18 years ago
(one of BZ's first installs, I can still hear him swear out a Quadra 950) Have no problem invisioning it at all.
Now 15,000 will by you 32 TB and I got 8 gigs on my key chain.
I wouldn't want to be the guy who buys a big Facilis system the day before BZ and gang announce their 10gige FCOE for 1/5 th money.

The point being If you blame bad management, I'd like to know specifically what you mean?
What did they do wrong?
This is a good learning opportunity.

My advice to all facility owners is to keep your eyes on two lines
and a number. The first line being revenue over time. The second being expense over time. The number being, If you pulled the plug
tomorrow what would you walk away with after settling all obligations . It is quite resonable to
think that this case was "Good Management" in that perhaps they
pulled the plug without missing the next payroll, without
stiffing their suppliers, without not paying freelancers,
without taking on personal liability
for unpaid taxes, without missing medical insurance premiums and letting everyone's insurance lapse, Knowing when to pull the plug
can be good management
I hope it doesn't happen to any here BUT for sure their is some
kid in high school somewhere with a dream of Hollywood and eyes on your rice bowl.


Neil Hurwitz