BRS acquires Marine Depot? WOW!

[rtparty]

Let's not forget that many companies will not allow you to sell their stuff on Amazon. I personally hope we continue to see this from a lot of the companies. Amazon does nothing for the hobby. Never has and never will.

Let me know how great the Amazon Investigates series is when they release it

 

[Anchor]

OK so, let's take a wait and see attitude.. eventually more will come out about this.. there is an awful lot of risk for BRS to take if a PE is involved.. I dont see them being irresponsible in this acquisition if it did not pose some for of benefit to them.. and understanding Ryan's perspective on the hobby itself, I cant see him agreeing to anything that would be detrimental. NOW.. I could see them acquiring another company, like CoralVue or some MFG company.. in the future.. but not until the MD thing gets settled.. I know there is company loyalty here.. on R2R. if MD was your go to, I can see your problem but I still think.. wait and see and stop tossing uninformed accusations where they dont belong or are unfounded.

 

[Sleepydoc]

Guessing your reply is to my post. Yep. Amazon still has smaller vendors that use them for storefronts and I’ve never had issues (like returns etc) with Amazon Prime. Fwiw I do buy a lot of my gear from AMZN where I get same or better pricing, free 2 day shipping, and no hassle returns.

I‘m also willing to pay more to a LFS.

…and there was a story on Bloomberg today about how Amazon uses bots to track and fire its delivery drivers will little to no oversight or recourse.

Its astounding and more than a bit hypocritical for you disparage BRS for its involvement with a private equity firm yet are total willing to support Amazon which is essentially a private equity firm in and of itself and whose practices are demonstrably worse.

 

[Brew12]

Well, here's their reply. I guess we'll have to see what they're "putting together", as you suggested...

Hey there,
Thank you for reaching out to us! BRS will not be honoring the lifetime filter promo from Marine Depot. We do have regular sales on our BRS filters pretty frequently.

Please let me know if you need anything further and take care!
Matt

I pointed it out earlier in this thread, but the MD refill kit, even at 15% off, was over $7 more expensive than the regular price BRS refill kit.
The advantage to the MD refill kit is that it came with an already filled ion exchange cartridge. Personally, I'd rather save the money and reduce plastic waste by refilling it myself.

 

[GillMeister]

This might not be a hostile takeover, and maybe MD has been looking for suitors for a while. So this could be a good thing for MDs ownership.

Having said that, this transaction removes some very good competition from the market. That's bad for consumers like us.

Also, BRS is now owned by a private equity firm. Unfortunately these people have a tendency to look for ways to trample customers and competition alike to pad the bottom line. Let this sink in for a bit. Ryan and Andrew will eventually be forced out. Then,, after the new ownership has sucked all the joy out of working with what had been a very customer focused BRS, they'll discard that carcass and look for something new to feed on.

Years from now you'll say, "hey, I think I read somewhere that this would happen".

 

[Cell]

Also, BRS is now owned by a private equity firm.

I dont believe this is accurate. Nobody knows how much stake was sold.

 

[rtparty]

This might not be a hostile takeover, and maybe MD has been looking for suitors for a while. So this could be a good thing for MDs ownership.

Having said that, this transaction removes some very good competition from the market. That's bad for consumers like us.

Also, BRS is now owned by a private equity firm. Unfortunately these people have a tendency to look for ways to trample customers and competition alike to pad the bottom line. Let this sink in for a bit. Ryan and Andrew will eventually be forced out. Then,, after the new ownership has sucked all the joy out of working with what had been a very customer focused BRS, they'll discard that carcass and look for something new to feed on.

Years from now you'll say, "hey, I think I read somewhere that this would happen".

Except, Ryan and Andrew still own BRS

"I think we read that somewhere already"

 

[NowGlazeIT]

Is what it is, just keep swimming

 

[DHill6]

When the BRS carcass day comes, to the above member, it will be back to old school, using swimming pool supplies, baking soda, etc., hands on approach. Who needs all the fancy equipment anyways. The coral and fish don’t have any idea you have an Apex running or how many times a day they are dosed. They just want to eat. I’m not worried as long as there’s salt.

 

[Sleepydoc]

Has anyone else stopped to think about the bigger issue that hasn’t been addressed - the fact that Marine Depot, a good sized company with a good customer base was not able to make it financially?

In the past few years we’ve seen the demise of Vertex and Marine Depot, and Drs Foster & Smith and Live Aquaria we’re bought out by Petco. To me this is more concerning for the hobby than simply BRS buying MD.

 

[Cell]

Has anyone else stopped to think about the bigger issue that hasn’t been addressed - the fact that Marine Depot, a good sized company with a good customer base was not able to make it financially?

In the past few years we’ve seen the demise of Vertex and Marine Depot, and Drs Foster & Smith and Live Aquaria we’re bought out by Petco. To me this is more concerning for the hobby than simply BRS buying MD.

Knowing Ken has wanted out since 2015, I'm not sure Marine Depot is a good gauge of this. Ken wasn't thinking long term with MD, he was trying to make it valuable enough to entice a buyer. I think BRS, which has tripled in the same time frame, would be the better indicator. I'm not sure what we are seeing is any different than any other industry with small companies being bought by larger companies for various reasons.

 

[GillMeister]

Except, Ryan and Andrew still own BRS

"I think we read that somewhere already"

And that's where we pick up on my line about them being eventually forced out. It happens when a well financed 'partner' gets introduced to the mix. No way this equity firm doesn't own some substantial part of the company or they never would have had the funding to buy Marine Depot. Once they have full ownership I'm afraid we'll be introduced to a new kind of company.

Of course, I don't know any of the details beyond what's been publicized so I could be wrong. (I'm not wrong)

 

[NowGlazeIT]

Has anyone else stopped to think about the bigger issue that hasn’t been addressed - the fact that Marine Depot, a good sized company with a good customer base was not able to make it financially?

The thought did cross my mind but not enough details/facts for me. MD sold instead of filing chapter9. So who is to say that they weren’t having one of their best years, then took their numbers to Investors to cash out.
I always went to brs for stuff. Till last year when I started using aquamaxx products.
All I am thinking about now is
saltwaterAquarium.com sold me a HR nitrate Hanna checker last week, without needing to pre order. i got my eye on that company.
Enjoy the Bahamas Ken

 

[wareagle]

But it is relevant. Are you paying attention to what's happening? Your version of the events is a private equity firm bought a [controlling] stake in BRS and they are now moving to [ruthlessly] acquire and eliminate all the competition, but we actually have evidence to the contrary - insider reports that Marine Depot was in poor financial condition, that employees were actively leaving the company and that the owner was looking to sell, specifically that the owner had approached BRS 6 years ago to sell, well before any private equity firm came on the scene. If MD was in dire straits and on the way out then they would either be bought out by someone or close their doors and liquidate. As @rtparty said, better BRS than Amazon or Petco.

It may well be that the equity partner provided capital to do something that BRS wanted to do but couldn't without the capital. It may also be that the value of MD had declined over the past 6 years and BRS would have acquired them anyway, or it may be that the equity firm was pushing BRS to expand. There's actually evidence for the first two possibilities. The third possibility is supported only by assumptions.

There is only one version, it's the truth and BRS/Bertram Capital has purchased a market competitor and eliminated them. I'm sorry I hurt your feelings so bad that you're now completely inventing a "my version" to try and twist things.


Prices are controlled by competition, we now have one less competitor in the market.
This means reduced value for me, the consumer.

There are zero assumptions or possibilities that you have invented here that have any impact on what happens to me, the consumer. I happen to be the #1 entity that I care about, not a brand, not a business figure, and not the latest trend. I spend my money when I shop, and I want the most value possible.

This isn't about the little guy vs the big guy, or some other narrative that you're trying to spin. It's about me the consumer.

 

[Mikedawg]

At the risk of being flamed (I really don't care ) let me add another bit of perspective to a discussion that seems to be devolving into good vs. evil, class warfare, etc.

I am a passive investor in a PE firm which specializes in finding "mom and pop" technology companies that are poorly managed, under capitalized, owners want to retire, etc. After conducting a thorough evaluation (including a pay and class study so we can project labor costs going forward and be confidant we can attract and retain workers) and considering other relevant factors, the company is bought and our managers are put in place. Their job is to execute the "new" business plan/practices, add accountability, etc., etc. Basically, turn a failed enterprise into a viable one, one which will reward the previous owners, reward productive employees, and give the "takeover" firm an acceptable ROI.

It is not simply about cutting up a company, getting rid of employees and the other draconian scenarios some have posited here. It is about saving a business which would soon be out of business, and savings jobs where there would be none. Of course change is necessary just like on Restaurant Impossible or Shark Tank, lol.

So, why take alarmist positions, even worse guess as to the motivations and values of others, and just wait and see. Frankly, I don't know what anyone can do but that. And, the wonderful thing is that there are many, many companies that want your business.

My 2 cents worth.

 

[rtparty]

Of course, I don't know any of the details beyond what's been publicized so I could be wrong.

Yep

 

[Tuffyyyyy]

Of course, I don't know any of the details beyond what's been publicized so I could be wrong. (I'm not wrong)

Odd way to finish your post when your signature says "I'm only smart enough to know that I don't know anything." haha

 

[mike550]

…and there was a story on Bloomberg today about how Amazon uses bots to track and fire its delivery drivers will little to no oversight or recourse.

Its astounding and more than a bit hypocritical for you disparage BRS for its involvement with a private equity firm yet are total willing to support Amazon which is essentially a private equity firm in and of itself and whose practices are demonstrably worse.

@Sleepydoc what did I say to disparage BRS for its involvement with a PE firm?

 

[CODE3EMT]

BIG NEWS FOLKS! Bulk Reef Supply as just bought out Boeing........Airbus.......Lockheed Martin.........oh wait, Disney........New Line Cinema............20th Century Fox...........Randy said they have now acquired CNN, FOX News, but wait there's more. BRS to buy out AT&T, TESLA, Space X. Oh lord say it ain't so..............

Reef Chilli now on sale for $349.99 for 2oz.

 

[Brew12]

There is only one version, it's the truth and BRS/Bertram Capital has purchased a market competitor and eliminated them. I'm sorry I hurt your feelings so bad that you're now completely inventing a "my version" to try and twist things.

Is this worse than just having MD fold and close up shop? By all indications, that was what the only other option was.

Prices are controlled by competition, we now have one less competitor in the market.
This means reduced value for me, the consumer.

Actually, most prices in this hobby have MAP pricing. For the stuff that doesn't have MAP pricing, you can get most of it on Amazon so there is plenty of competition.

This isn't about the little guy vs the big guy, or some other narrative that you're trying to spin. It's about me the consumer.

What actually happens remains to be seen, but I have hope this could be good for the consumer. Because this hobby is so dominated by MAP pricing we, the consumer, rarely get a price break. I am hoping BRS becomes large and dominant enough to force the major equipment players to reduce their MAP pricing and offer larger discounts during traditional sales. It could be good for BRS and for us consumers.
Will it play out that way? Who knows... BRS may not be large enough to make that happen even with MD out of the picture.