[cadillac]

Can anyone give me the pros and cons on these companies?

[jollyvolly107]

cadillac i can tell you that GTS headquarters is in Grand Rapids, Mi and they were on the news in the past year for filling bankruptcy, but i think Harvey still has the company running like normal

[1catfish]

Originally Posted by jollyvolly107

cadillac i can tell you that GTS headquarters is in Grand Rapids, Mi and they were on the news in the past year for filling bankruptcy, but i think Harvey still has the company running like normal

[Musicman]

Originally Posted by jollyvolly107

cadillac i can tell you that GTS headquarters is in Grand Rapids, Mi and they were on the news in the past year for filling bankruptcy, but i think Harvey still has the company running like normal

I have a friend and former coworker who is a higher up with Lester Coggins which is owned by Gainey. He claims the companies were bought last week by a company named Michigan Trucking, which according to my SAFERS search has no operating authority that I can find. There is also a parent company to MI Trucking whose name I cannot remember.

He claims that after a big meeting with all the current presidents of all the Gainey companies and the heads of the new ownership that his understanding is that as long as the companies turn a profit they will be allowed to operate as they did before the bankruptcy. If they lose money then they will be chopped up and sold off in pieces.

I don’t know why anyone would choose to start working for a company whose future is that uncertain. They already have a record of financial failure so what would make you think that they will succeed in these tough times? I would not be surprised if in a year if LCT is the only company left intact in the old Gainey group of companies. They are in a specialized niche that gives them an added advantage over the rest and they are still turning a profit.

[jonp]

Harvey was kicked out last month when Wayzata Capitol, a private equity company based in Minnesota, bought the company at auction last month. He will remain as "chairman emeritus" but will have no say in the company.

Founder Harvey Gainey no longer owner of Gainey Corp. | West Michigan Business - - MLive.com
Wayzata Capital submits winning bid in Gainey Corp. bankruptcy auction | West Michigan Business - - MLive.com

I'm not sure I would worry too much about this, however, if you take a position with this company you would want to keep a close eye on it as private equity firms are in business to make money, period. If they don't do that they will break up the company and sell the equipment, buildings etc to make the investment back.

[Musicman]

Originally Posted by jonp

Harvey was kicked out last month when Wayzata Capitol, a private equity company based in Minnesota, bought the company at auction last month. He will remain as "chairman emeritus" but will have no say in the company.

I'm not sure I would worry too much about this, however, if you take a position with this company you would want to keep a close eye on it as private equity firms are in business to make money, period. If they don't do that they will break up the company and sell the equipment, buildings etc to make the investment back.

Wayzata is the company I couldn't remember... thank you. The way my buddy put it was "Michigan Trucking" would own Gainey, and Wayzata was the "grandparent company". I don't know where this "MI Trucking" company comes in at, but this guy should know who he is working for, especially in his position. I haven’t had a chance to talk to him since we spoke on the 22nd. Perhaps a change in the way things would be structured came after we talked. Anyway, it will be interesting to see how Gainey does under its new management. Since Wayzata is Gainey’s biggest creditor, you would think it will allow more leeway in repayment of Gainey’s debt.