SiCo founder out as CEO, looking for new CEO

[SC-Texas]

The self inflicted bloodletting goes on. Josh Waldron, the guy who started Silencerco with Mike Pappas and Jonathan Shults is now out as CEO. Jason Schauble, of Tracking Point and Remington lineage left a few months ago. Shultz is apparently taking over as cOO which is a demotion from president. This reshuffle followed the multiple rounds of massive layoffs at SiCo. One has to wonder what this means for SiCo's future. Josh and Shultz are the two largest equity holders and one wonders why the shuffle is happening at this time.

How bad is the debt situation? The guy who started SiCo is now gone from the daily operation of the company. How long does SiCo have? Is there a buyer ready to snap SiCo up and save the company? Stay tuned. The drama probably isn't over.

https://www.businesswire.com/news/h...r-Giant-SilencerCo-Announces-Shift-Leadership

 

[SC-Texas]

I love the spin regarding the "successful advocacy for the company and the industry". I have to wonder if either silencerco or the industry itself can survive any more of the successful legislative advocacy since the last legislative advocacy pretty much killed the entire suppressor industry and this company

Sent from my SM-N920V using Tapatalk

 

[tact]

Well either way......their products are great.

 

[oldag]

May be just as simple as stated in the press release.

 

[SC-Texas]

Actually Shultz was demoted from President to COO and they are looking for a new CEO

Sent from my SM-N920V using Tapatalk

 

[SC-Texas]

May be just as simple as stated in the press release.

Yeah . . . .right. uumkay.

I'll ask you this question, if you own the company do you leave it when the revenues are below expenses because that is the time to company is set up to most likely succeed and be successful? If you're the owner of the company do you accept a demotion from president to C00?

The fact is that press release has more spin than a 40 grain projectile traveling at 4000 feet per second

Sent from my SM-N920V using Tapatalk

 

[SC-Texas]

Well either way......their products are great.

They make good stuff. Not my favorite. The real question is are they being sold like gemtech was

Sent from my SM-N920V using Tapatalk

 

[tact]

Happens to companies all the time.....even in this particular industry. AAC had a tumultuous revamp as well.

 

[SC-Texas]

Happens to companies all the time.....even in this particular industry. AAC had a tumultuous revamp as well.

Kevin sold the company at its height. For a profit and then a year later was wrongfully terminated and won that lawsuit.

No sale has been reported here. The company has taken own an excessive amount of debt in the run up to 41 f with the expectation that HPA would pass.

The company has been through several large layoffs and layoffs have continued.

Josh is supposedly the largest equity owner with Shultz.

He is not leaving a company poised for success.

He is not leaving a company that is financially healthy.

Kevin Brittingham and AAC are not the example you are looking for. They are the opposite.



Sent from my SM-N920V using Tapatalk

 

[TheDan]

I'll ask you this question, if you own the company do you leave it when the revenues are below expenses because that is the time to company is set up to most likely succeed and be successful? If you're the owner of the company do you accept a demotion from president to C00?

Maybe he realized that he's better at managing operations than the business, and wants to hire someone that can turn the business side of things around? I can relate...

 

[SC-Texas]

Maybe he realized that he's better at managing operations than the business, and wants to hire someone that can turn the business side of things around? I can relate...

I'm more on the skeptical side of the analysis.

Wasnt that why they brought Jason Schauble in from tracking point and Remington?

Generally, these shakeups occur more frequently as the business declines. I wonder if someone buys SiCo at a cheap price in the near future.





Sent from my SM-N920V using Tapatalk

 

[tact]

Well apparently you have it all figured out here and all forms of business.......blasted fake news.

 

[SC-Texas]

There are often reasons for forcing the majority shareholders into "advisory" positions and demoting them.

I doubt that the founders who used to answering to no one and being in charge of their company since 2008 just decided to do some other stuff when the market is down and the company is in serious financial trouble. Further they can't pull money out of it to finance their retirement.






Sent from my SM-N920V using Tapatalk

 

[SC-Texas]

Well apparently you have it all figured out here and all forms of business.......blasted fake news.

Why is it fake news?

Sent from my SM-N920V using Tapatalk

 

[oldag]

Yeah . . . .right. uumkay.

I'll ask you this question, if you own the company do you leave it when the revenues are below expenses because that is the time to company is set up to most likely succeed and be successful? If you're the owner of the company do you accept a demotion from president to C00?

The fact is that press release has more spin than a 40 grain projectile traveling at 4000 feet per second

Sent from my SM-N920V using Tapatalk

You could be right, could be spin. But you could be wrong.

I have personally known founders who finally realized they were not the right person to continue leading the company. And yes, that can (and often should) happen in times when the company is in financial distress.

 

[oldag]

There are often reasons for forcing the majority shareholders into "advisory" positions and demoting them.

I doubt that the founders who used to answering to no one and being in charge of their company since 2008 just decided to do some other stuff when the market is down and the company is in serious financial trouble. Further they can't pull money out of it to finance their retirement.
Sent from my SM-N920V using Tapatalk

You are overlooking the fact that shareholders in closely held companies do not all have egos that dwarf their financial outlook (although some certainly do). Did you ever consider that the founder might realize he has responsibility for the company being in distress, and he realizes that his investment is going to zero value unless someone else can take over and turn it around?

 

[SC-Texas]

You could be right, could be spin. But you could be wrong.

I have personally known founders who finally realized they were not the right person to continue leading the company. And yes, that can (and often should) happen in times when the company is in financial distress.

You may be right. I have long said that they were structuring the company for a sale to a larger manufacturer. I've also said in the past they have some severe debt issues due to overexpansion Prior to 41f F being enacted.

I think if we will see in the next 6 to 12 months what happens.

Sent from my SM-N920V using Tapatalk

 

[Dawico]

My outsider's guess is that they want some fresh blood to turn everything around. Sometimes between the headlines and a well known name on the door everything changes.

 

[Renegade]

They were fired. IMO, they are being held accountable for their poor decision making wrt 41F and some failed products.

In a few months another press release will say they "left to pursue other interests."

 

[F350-6]

A year ago, HPA seemed like a done deal. Ramping up to meet the resulting demand didn't seem illogical.

Cleaning house during the current mess to get ready or become more attractive for a sale also seems to make sense.

Unless HPA somehow comes back into play. Then all bets are off.