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Discussion Starter · #1 ·
I'm not trying to start any fights here, but what was the reason for AC going out of business in the early '80's. I was 6 or 7 years old, not a big ordeal for me at the time.

Thanks.
 

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Spent too much on racing.
 

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Discussion Starter · #4 ·
<div class='quotetop'>QUOTE (Boris the Cat @ Jan 12 2007, 06:25 PM) <{POST_SNAPBACK}></div>
I guess they had some hard times. does it really make a difference now? it's been so long since they came back.[/b]

Yes, I'd like to learn more about something I don't know much about.
 

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This may not tell the whole story but it does give you an idea of what was happening

"To the chagrin of the workers and management at Thief River Falls, history continued to repeat itself in the decade ahead, as the early 1980s paralleled the early 1970s and rampant growth quickly disappeared. This time, however, the effects were much more devastating. Sales in 1980 climbed to $185 million, despite a decline in snowmobile sales throughout the country, but by far the most telling and most depressing financial figure for the year was the company's profit total. Arctic Enterprises lost $11.5 million during the year, a staggering blow that was followed by another $10 million loss the following year. As production totals in 1981 fell to their lowest levels since 1969, the bankers who had granted the company loans over the years became disgruntled and alarmed. Worried that the company would not be able to make good on its financial promises, the bankers called for the payment of $48.5 million in loans on February 6, 1981. Eleven days later, Arctic Enterprises filed for protection under Chapter 11 of the U.S. Bankruptcy Act. In a year that otherwise would have been celebrated as the company's 20th anniversary year, Arctic Enterprises was ruined financially."
 

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Looking at the bright side... Arctic Cat is the only sled/ATV company with 8 lives left!

Rockerdude :D
 

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<div class='quotetop'>QUOTE (catman6 @ Jan 12 2007, 07:21 PM) <{POST_SNAPBACK}></div>
I'm not trying to start any fights here, but what was the reason for AC going out of business in the early '80's. I was 6 or 7 years old, not a big ordeal for me at the time.

Thanks.[/b]
A snowless winter in 1980 and over-production forced Arctic Enterprises to scale back operations and close boat manufacting subsidiaries. Arctic Enterprises went bankrupt in 1981 and ceased production in 1982. In 1984, a new startup company was formed, called Arctco to continue production of the Arctic Cat snowmobile line. In 1996, the company officially changed its name to Arctic Cat.

Bought boat manufacturers such as Spirit Marine, Silver Line, Larson, and Lund. Spirit Marine produced the first Wetbike in 1978. Ill advised purchase(s) , Sucked the cash flow to critical levels.
Rampant Inflation (remember "WIN buttons'.."whip inflation now!"..RIP Jerry Ford)
Snowless winters
Fiscal greed by AC execs.= reckless borrowing.
Too many leftover/ used sleds in pipline
Carryover technloogy
OPEC,and friends
Dealers going belly up w/o paying floor plan or inventory.

Dead but not forgotten, Arctic Enterprises was etched in the memories of its loyal customers, some of whom vowed never to ride a snowmobile again.>>

http://www.answers.com/topic/arctco-inc

..and last but not least,YAMAHA.

mmmmmm...mm Sounds like deja Vu..all over again?
 

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<div class='quotetop'>QUOTE (cehyoopers @ Jan 13 2007, 02:20 PM) <{POST_SNAPBACK}></div>
they were down but never out,[/b]
Huh? How do you figure? Going bankrupt is about as OUT as you can get and thats recorded and on the books as I understand it.

<div class='quotetop'>QUOTE (cehyoopers @ Jan 13 2007, 02:20 PM) <{POST_SNAPBACK}></div>
even when they had no model sled to sell they were making and selling their own line of outdoor clothing,something they have done right up till today.Although they now also import.They had recorded sales every year,and rumour has it they kept the first production "A" arm sled hidden from the sight of the head hunters,only to put it into production the following year.No other company can boast this type of success,they may even still have 9 lives left AG.[/b]
Boast? I don't get it. What in filing bankruptcy allows one to boast. Usually the boasting is reserved for successful bank accounts, not sticking somebody with 48.5 million in debts. The success was in the comeback, not the bankruptcy. To come back from nothing to what they did was pretty good and maybe something to boast about.
 

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<div class='quotetop'>QUOTE (A G @ Jan 13 2007, 05:38 PM) <{POST_SNAPBACK}></div>
<div class='quotetop'>QUOTE (Jeff H @ Jan 13 2007, 06:15 PM) <{POST_SNAPBACK}>
The success was in the comeback, not the bankruptcy.[/b]
That success of the comeback... Is worthy of a boast IMO.

:chug:
[/b][/quote]


I agree, it certainly is. Thats a helluva corporate wall to climb! :thumbsup:
 

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<div class='quotetop'>QUOTE (bodd @ Jan 13 2007, 10:51 AM) <{POST_SNAPBACK}></div>
... Spirit Marine produced the first Wetbike in 1978. Ill advised purchase(s) , Sucked the cash flow to critical levels.
Rampant Inflation (remember "WIN buttons'.."whip inflation now!"..RIP Jerry Ford)
Snowless winters[/b]
Jimmy carter was President in 78, He brought us double digit inflation, not Ford.
 

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<div class='quotetop'>QUOTE (Boris the Cat @ Jan 13 2007, 10:52 PM) <{POST_SNAPBACK}></div>
<div class='quotetop'>QUOTE (bodd @ Jan 13 2007, 10:51 AM) <{POST_SNAPBACK}>
... Spirit Marine produced the first Wetbike in 1978. Ill advised purchase(s) , Sucked the cash flow to critical levels.
Rampant Inflation (remember "WIN buttons'.."whip inflation now!"..RIP Jerry Ford)
Snowless winters[/b]
Jimmy carter was President in 78, He brought us double digit inflation, not Ford.
[/b][/quote]


Was his his legacy even though peanut brain caused it..and FORD was the one that helped wip it.(!)
 

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Damn poor winters, to many hands in the cookie jar, poor decisions amoung many other problems. All of us dealers at the time really took a screwing !
 

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<div class='quotetop'>QUOTE (Jeff H @ Jan 13 2007, 08:32 PM) <{POST_SNAPBACK}></div>
<div class='quotetop'>QUOTE (A G @ Jan 13 2007, 05:38 PM) <{POST_SNAPBACK}>
<div class='quotetop'>QUOTE (Jeff H @ Jan 13 2007, 06:15 PM) <{POST_SNAPBACK}>
The success was in the comeback, not the bankruptcy.[/b]
That success of the comeback... Is worthy of a boast IMO.

:chug:
[/b][/quote]

I agree, it certainly is. Thats a helluva corporate wall to climb! :thumbsup:
[/b][/quote]
Exactly just like Harley Davidson and AMF splitting up early in the 80's. Structured and Shaped it's difficult finances so forth and rebounded over the years. In my eyes, AC and HD rules !. :D
 

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I just took the numbers from a previous post. I don't know what their exact debt was but I know they filed bankruptcy. In that light, the numbers mean squat. From hero to zero before the ink was dry.
 

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Discussion Starter · #19 ·
I am also glad that they are back, I would still be riding around on my '79 Jag. Let's hope for more snow for us and Cat. ( Oh, and I suppose the other companies).

<div class='quotetop'>QUOTE (Snotcicles @ Jan 14 2007, 10:04 AM) <{POST_SNAPBACK}></div>
Im just glad their back now, hope they stay around awhile. Low snow winters must put the big hurt on 'em.[/b]
 
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