125 replies to this topic

[mawcatax]

I must be losing my mind.     I first wanted to post the reference below, then I thought I saw discussion of the same in the pinned topic on CS Manufacturing, so I deleted it.  Now I can't find that discussion, so here goes again ...  My apologies if this is a duplication.

 

Tancred, on FPN, posted the link (below) to this article on CS in administration - "Cowgill Holloway Business Recovery, were appointed as joint administrators to Conway Stewart Manufacturing (UK) Ltd on 28 August 2014 by the company's director.

 

A spokesman for Cowgill Holloway confirmed to Insider that a reduction in sales and turnover had caused a "distressed financial position" at Conway Stewart.

 

Following the administrators' appointment, the company ceased trading resulting in four redundancies."

 

Curious what the four redundancies were and if there is any other information out there?

 

 

http://www.insiderme...h-west/122790-/

 

Cheers!

Mike

mawcatax

Edited by mawcatax, 08 September 2014 - 02:13 PM.

[Hugh]

This should surprise no one who's been following the saga. Just goes to show you can be virtually given a pen company and still go under.

 

Regards

Hugh

[mawcatax]

Hugh

Agreed - I understand that CS has gone through "administration" a number of times; perhaps more drastic changes are in order this time. One would think the trade name has some value whereas manufacturing needs to be done at a lower cost somewhere else, etc...

Mike

[AndyR]

Think of the parent company 'Plymouth Pen', not the subsidiary 'Conway Stewart (Manufacturing) UK' while all this plays out....

 

Andy

[Hugh]

Well Andy this article doesn't paint a rosy picture with the claim of "ceased trading" and "redundancies", maybe your info is different. How accurate time will tell but it seems to rule out another pre pack.

 

Regards

Hugh

[mawcatax]

Think of the parent company 'Plymouth Pen', not the subsidiary 'Conway Stewart (Manufacturing) UK' while all this plays out....Andy

Andy,

If the business had been structured properly, then the intellectual property (IP) such as the trade names, patents, etc... should have been owned by a different corporation than the operating business ... If that is what you are suggesting. I am not sure how Onoto is connected with Plymouth Pen(PP) but presumably Onoto still has the right to use that IP - only the business assets of CS, e.g., inventory, equipment, etc... are at risk and may need to be sold to satisfy the creditors. It is also possible that PP has a secured interest in all or part of those assets.

Mike

Edited by mawcatax, 09 September 2014 - 09:24 PM.

[Hugh]

Being rather cynical I've wondered all along if a bit of asset stripping hadn't occurred. Few would take a £300,000 feebie and walk away losing anything, I've always assumed the owners funds never at risk and when it became clear all was not well a little profit making would seem a logical action. Why there was a change of management recently seems somewhat lost on me at this point as it's now clear it was in big trouble. A bit of running away to save face?

 

Is the CS name worth much or even anything is a good question. To me it seems the last incarnation has devalued the name somewhat ( trashed it) so I'm not sure it's worth a lot especially given a low consumer base. Frankly I can see little reason why anyone would buy it as a serious business, maybe someone who can afford a loss making venture as a "hobby".

 

The Brand Cellars venture failed to eventuate which was probably the key for the 2010 buyers then FPN changed it's "rules" effectively ending free advertising for CS. It would be ironic  if Wim actually contributed to CSs demise. Real world marketing was atrocious here in Australia, a distributor who was next to useless. You could not buy a CS in Sydney, that says it all.

 

I hope people heeded my numerous warnings not to buy directly from CS, anyone with money out and no pen will most likely end up with neither.

 

Regards

Hugh

[david i]

Though I am far from steeped in the nuances of CS's current business situation, in my role of  collector and of collecting-context pen seller I see the CS label still as having value.  Collectors know the pen. The recent modern incarnation saw pretty and usable products which better than some remakes did channel the originals, evoking their look.  If a stable manufacturer issue new pens under that name-- especially pens that look like Conways-- the pens could sell well.

 

regards

 

david

[mawcatax]

David,

I agree with the points made by both you and Hugh - though the value of the IP may have diminished in the hands of the current owners, it might well thrive in the hands of the right owners. The brand and all of its names such as Churchill, etc... will need to undergo a substantial and visible remediation, including addressing the quality issues that have plagued them, if it is to be successful. That will also necessitate a "clean sweep" of any remaining management.

Most important of all, I also hope that very few individuals and/or sellers are exposed as Hugh mentions in that they have paid for but not received pens they had ordered from the company - they will not receive either their payments/deposits or their pens.

Mike

[AndyR]

Some brief answers to the points raised by Mike, David & Hugh....

 

There is no connection between Onoto and Plymouth Pen, other than Alastair purchased 25% of Plymouth Pen when he joined CS, matching his holding of 25% in Onoto.

 

Hugh asks 'why the change in management'? I can see three possibly more relevant questions. Why would the owners let the situation run on as it was for so long before doing something about it? Why would someone with a good track record in a successful pen company want to get involved with an operation that was obviously failing? And what (if anything) has changed in the last few months?

 

Those who bought or paid deposits for unreceived pens directly to CS using a credit card (as I suspect most would have done) will be covered by their credit card companies, at least under UK law. Not so for debit cards, unfortunately.

 

I doubt the value of the CS name has been reduced any further by this - all those who continued to buy CS pens after the 2010 administration, despite all the reports of poor customer service & QC issues, are unlikely to be influenced by a little thing like a further period of administration. Unfortunately, there are apparently just not enough of those to allow the business to flourish in its present (or should I say pre-adminstration) form.

 

Andy

Edited by AndyR, 10 September 2014 - 07:08 AM.

[Hugh]

Hi Andy,

 

As always more questions than answers !! Recapping the last couple of months with appropriate arse kicking of some under performers I wonder if Alan Cheshire suddenly realized it was his majority stake meant he was the big loser ( or gained least ...).....and calling in some (successful) experience the best option. Now 25% of PPC would be worth....not much...so little financial risk to buy in v possible speculative gain.

 

Mentioned on FPN was the decision was made by Cheshire and not supported by Alastair indicates who was controlling the show and adds weight to Alastair there to try to salvage the company.

 

While a lot hold the CS name in high regard I think a reality check is needed. David I. loves quoting Einstein....this would appear to support that often seen quote about expecting a different result. The real CS died a long time ago....and every reincarnation has failed for one simple reason...they don't sell enough pens. Frankly I can't think of a good financial reason why anyone would try again, still time will tell.

 

Regards

Hugh

[Hugh]

....I should also add it seems Cheshire acted sooner rather than later, probably the best call in a difficult situation for all involved.

[AndyR]

Sorry, Hugh, only more questions than answers this time because I don't actually have any precise answers at present!

 

I have no idea how all this will play out, but it may be complicated. Whatever actualIy happens, I do believe that the only way CS can continue successfully in any form is if manufacturing, sales, QC etc., are merged with Onoto - somewhere, somehow...

 

I too noted the point made on FPN that Alastair didn't actually make the decision to go for administration, but I seem to remember that whether he supported it or not was not explicitly stated. Strangely, when I went back to the FPN topic to check the precise wording, that bit appears to have been edited out completely (at least, I couldn't find it again), so make of that what you will. The decision had to be made by Alan Cheshire, because he was the sole director, and he and his family own almost 75% of the shares in Plymouth Pen, so of course he was controlling the show.

 

As a complete aside, did you know that John Sorowka, Oxonian on FPN, and nib grinder to Onoto and, latterly, CS, currently owns the company 'Conway Stewart limited', along with Amos Peek, another WES member? The same pair also own 'R.C. Phillips limited', another name that will be very familiar to British vintage pen collectors. This information is freely available on the 'CompanyCheck' website.

 

Andy

[mawcatax]

Gentlemen,

 

The CompanyCheck website is truly full of interesting tidbits when searching for "Plymouth Pen", "Conway Stewart", etc... and I was quite enamoured by it last evening as I searched through it - and for free, no less!

 

As for the value of the CS name and all its trademarks, etc..., I agree with Andy that some sort of merging with Onoto is its best chance of success - this will include a reduced number of pen models available in fewer colours, with options for steel and gold nibs (the steel nibs allowing it to be competitive at lower price points), charging more for non-standard nibs such as the italics currently offered at the same price as standard nibs, likewise charging more for bespoke colours, standard vs. deluxe packaging choices, etc...

 

The business can be made more profitable through increased sales (by adopting the practices noted above) as well as a complete overhaul of the brand - new management with dramatic improvements to quality control and customer service.  Of course, the other side of the equation is a reduced cost structure so that the gross margin on every pen sold is increased.

 

Surely someone/some pen company has the resources and business acumen to make CS a winner?

 

Mike

[vintage penman]

This latest bout of administration comes as no surprise to me.

I do wonder where and how Conway Stewart Limited and RC Phillips ltd fit into all this - surely these are two totally unconnected ventures that could conceivably be used as vehicles to make / sell / distribute future CS products.

I'm sure their owners will be happy to expand upon this speculation when the time comes

[AndyR]

Sorry if anybody was getting ready to make an offer for the company - it seems you should have registered your interest by last Friday!

 

http://www.winterhil...ing-uk-limited/

 

Interesting to note they are still saying the company has been making luxury pens for over 100 years rather than 4 years or so since the last administration....

 

Andy

Edited by AndyR, 11 September 2014 - 01:56 PM.

[malcolm]

Sorry if anybody was getting ready to make an offer for the company - it seems you should have registered your interest by last Friday!

 

http://www.winterhil...ing-uk-limited/

 

Interesting to note they are still saying the company has been making luxury pens for over 100 years rather than 4 years or so since the last administration....

 

Andy

 

That 100 years thing is just totally bizarre!

 

I was just so disappointed to see that the updated CS web site still claimed 'British Luxury Pens Since 1905'. So much for the 'pens by the million'.

[Paul M]

Now very confused. 

 

Andy's link is for expressions of interest in what is presented as a going concern

 

There is then a link to a Winterhill site listing the machinery for sale by online auction next week. Surely there is no way back from there

[FarmBoy]

Sorry if anybody was getting ready to make an offer for the company - it seems you should have registered your interest by last Friday!

 

http://www.winterhil...ing-uk-limited/

 

Interesting to note they are still saying the company has been making luxury pens for over 100 years rather than 4 years or so since the last administration....

 

Andy

So were there any potential buyers here that missed the opportunity due to short notice?

[AndyR]

Now very confused. 

 

Andy's link is for expressions of interest in what is presented as a going concern

 

There is then a link to a Winterhill site listing the machinery for sale by online auction next week. Surely there is no way back from there

 

Perhaps this just reflects that the administrators have now decided from the interest expressed by the deadline that there is no value in the manufacturing business (Conway Stewart (Manufacturing) UK ltd) by itself - the value is only in the brand name. This ties in with my earlier assertion that Conway Stewart needs to share manufacturing facilities to have any chance of being a going concern. As far as I can see, the Conway Stewart trademark is currently owned by Conway Stewart Global Brands ltd. - the shareholders in this company are Alan Cheshire, his brother in law Mr Rawji (formerly a director of CS Manufacturing, and another shareholder in Plymouth Pen) and the now defunct Brand Cellars ltd., information again courtesy of Company Check.

 

I told you it would be complicated.....

 

Andy

 

Edited by AndyR, 11 September 2014 - 08:04 PM.