Thread: GMC goes into receivership

Originally Posted by Waldo

As always Rob, a very well structured and thoughtful post.

hear hear

Originally Posted by Different

Simple if a large supplier of low quality products goes belly up then the average quality of what is then available goes up. The key word here is average!
No doubt only for a short time untill some other manufacturer of cheap tools fills the void.


ross

You may look at it as "average quality" going up, I look at it as "average price" going up.

This is a bit of a moot point, as no one buys an "average". Everyone looks at the mix of features and prices, decides which product best suits their needs, and buys (or decides not to buy). Having fewer players may mean the average quality of what is available either goes up or down, but it also will mean the average price goes up or down, and so the market grows or shrinks.

Do you think the presence or absence of GMC will directly affect the sales of Festool? Not very likely in the short term. But in the long term, budget tool makers bring more people into the market, and so the overall market grows. And some of those will eventually decide they need a Festool, or another premium brand.

So the real effect of a company like GMC is to increase the size of the tool market, and drive average prices down. Personally, I think GMC has done more to change (as in improve) the tool market in Oz than any other company over the past 20 years, and it will be a sad day if they disappear.

I do not have much GMC only what was bought as a gift IE:small router, and a small sander but I wonder what happens to all those people counting on a replacement warranty, or guarantees of 2 year replacement Warranty.

Harvey Norman were selling a small GMC Chainsaw with 2 year replacement Warranty about three months ago.

There were also a lot of 18 inch mowers with a four stroke chinese motor, looks as if the scrap metal dealers will be able to boost their stock pile with a more than likely chance of no warranty for any thing.

You usually only get what you pay for in this world.


Comiserations to all the employees who are caught up in this, but it would be fair to say most of them would be in China.

Regards Mike

Just picked up a GMC compound mitre saw for $40 at Makit Hardware. Noticed that:
a) the store clerk didn't know they stocked GMC even though it is in their ad campaign
b) they have almost all GMC stock marked down significantly.

As much as I love my Makita stuff, GMC will leave a hole if they don't get a decent buyer. At least I/we may be able to pick up some good gear cheap.

So does this mean I should or shouldn't buy a new Triton router?

Originally Posted by atregent

So does this mean I should or shouldn't buy a new Triton router?

Well depending on what happens to GMC/Triton, you could be buying a router with no warranty, spare parts or support. Personally I wouldn't be buying any GMC/Triton gear until it is sorted out.

I guess that would be the smart approach to take. Pity, I thought I'd done all the appropriate research and the better half was going to get me one for christmas. Back to the drawing board I suppose!

Originally Posted by MICKYG

I do not have much GMC only what was bought as a gift IE:small router, and a small sander but I wonder what happens to all those people counting on a replacement warranty, or guarantees of 2 year replacement Warranty.

Harvey Norman were selling a small GMC Chainsaw with 2 year replacement Warranty about three months ago.

There were also a lot of 18 inch mowers with a four stroke chinese motor, looks as if the scrap metal dealers will be able to boost their stock pile with a more than likely chance of no warranty for any thing.

You usually only get what you pay for in this world.


Comiserations to all the employees who are caught up in this, but it would be fair to say most of them would be in China.

Regards Mike

the chainsaw which is model PCH25 comes with a 6 month warranty...not 2 years.

Contact GMC direct for any warranty problems until the new owners are announced.

Wrong on the employees, most are in Oz.

Eagle

The following items manufactured by GMC have been part of an advertisement in a Harvey Norman Flyer

PCH25 Chain Saw, EDG3 electric edger, LTP26SS 25cc petrol trimmer, 22CCHT petrol hedgetrimmer, PB26D 26cc petrol blower

The above includes 2 (two) YEARS replacement warranty as stated in the Flyer distributed by Harvey Norman in NSW approximately 29/08/2008 Page 32 V2.

You are suggesting that it takes more staff to distribute and sell it than it takes to manufacture the equipment.(( I am apparently wrong on this point as Peter has pointed out so no staff from China involved )) A friend of mine ordered and paid for the pch25 chainsaw over three months ago and was recently advised it would not be supplied and an offer of their money back, I consider him to be very lucky not to have to deal with another dodgy arrangement where quality control is poor. I do have the page with the advertisement in which covers the above models.

I guess it is possible as a reseller to be advised of something quite different to what in actual fact exists. I am fortunate I only have two pieces of GMC which are well out of warranty but it still all comes down to "you only get what you pay for".

When you make a purchase you generally do not wish to have any hassles if there is a problem with warranties you really need something that you can count on.

Regards Mike.

Originally Posted by Eagle

Contact GMC direct for any warranty problems until the new owners are announced.

In light of our many recent PMs, you might want to retract this gem of advice (assuming GMC and Triton are one and the same)!

A lot of misconception seems to be about warranty claims on GMC products if they breakdown during the warranty period. The answer is simple.

IF the tool is bought before GMC went into receivership and you have (or will have later on) a warranty claim then you become an unsecured creditor of the company and stand in line for a share of the eventual payout to unsecured creditors. These are the last in the food chain unlike employees that are first in line.

If the tool is bought after GMC went into receivership (which is a different legal entity) you bought it from the receiver and by law he is required to make good any liability he incurs (including lawful warranty claims) during the receivership before any one of the creditors get any money. So make sure you keep proof of the later purchase date as this will be essential in securing your claim.

The exception to this will be if the receiver can get an eventual purchaser to take over the warranty claims on the before and after receivership as part of the goodwill purchase but this is doubtful and possibly only with the Triton brand name as this has some value.

This is what I learned when I was working in a company that went through similar troubles.

Peter.

Originally Posted by MICKYG

You are suggesting that it takes more staff to distribute and sell it than it takes to manufacture the equipment. .

That would be true as GMC bought the goods it sold from overseas manufacturers and those people are not staff. GMC only employed people to sell and distribute their goods.


Peter.

Originally Posted by Sturdee

A lot of misconception seems to be about warranty claims on GMC products if they breakdown during the warranty period. The answer is simple.

IF the tool is bought before GMC went into receivership and you have (or will have later on) a warranty claim then you become an unsecured creditor of the company and stand in line for a share of the eventual payout to unsecured creditors. These are the last in the food chain unlike employees that are first in line.

If the tool is bought after GMC went into receivership (which is a different legal entity) you bought it from the receiver and by law he is required to make good any liability he incurs (including lawful warranty claims) during the receivership before any one of the creditors get any money. So make sure you keep proof of the later purchase date as this will be essential in securing your claim.

The exception to this will be if the receiver can get an eventual purchaser to take over the warranty claims on the before and after receivership as part of the goodwill purchase but this is doubtful and possibly only with the Triton brand name as this has some value.

This is what I learned when I was working in a company that went through similar troubles.

Peter.

Interesting info Peter. So it seems to me that you may be in a better postion, warranty wise, if you buy GMC/Triton (Triton is the brand I have in mind) after they went into receivership than just before?

I thought the tax office was first in line when a company goes into receivership?