Hot Rods Jegs sold

Jegs has sold a controlling interest to an investment group .

 

Yep, Greenbriar Equity. Heard about it a few days ago.

 

This type of deal never seems to work out to be a good thing.

 

Reduced product variety and increased prices here we come!

 

Investments from Equity firms never seem to work out for the consumer.

 

Or for the employees of the business....

 

Early hot rod building days here we come.
Yeeee haaaaaaa

 

Your stash of vintage parts just went up in value.....

 

A bunch of the smaller independent outfits that I have purchased parts from for pony cars have been bought out by the same investment group.

I was using them as a source for Falcon parts, as many interchange. The investment firm killed off lower performing products, and much of what I was using.

Just one example of what can happen.

 

Yeah, that's another pretty typical result in these deals.

 

I don't understand why investment groups seem to do this over and over....it never works out, it is a fail for everyone. Current prime example....The Eckler Group!

 

We've all seen this before, remember USA manufacturing ? Investment groups liquidate assets, inventory, employees gone, it's a good game only for the seller and the investment company. Jegs more than likely will become a name from the past shortly. Our great Hobby will never stop, just another step in the changing times.

 

I think (could definitely be wrong) investment firms are in it for short term and a high return. As opposed to building/making a company for the long term.

 

Will go the way of Super Shops, just a memory

 

. Loved Super Shots, fun place in the 80s. Our local one was well stocked and had cruise-ins.

 

Hmmm, Greenbriar bought into GM’s Electro-Motive Division and that was the beginning of the end. Layoffs, farm outs of much of what we had produced in-house for decades, cheapening of the locomotives and more.
Jeg’s won’t follow the same path but whatever happens there won’t be good.

 

It will be interesting to see if the new owners continue Jegs sponsorships/contingency awards in NHRA and/or other racing series. Although Jegs doesn't seem to have the same presence like Summit does.

 

If they offshore their customer service it'll be over for me....

 

Noticed a lot of more esoteric parts price-reduced recently w/ no back stock available. Have to keep your nose to the stone on those, as some pop up mysteriously in small batches from time to time.

Joe

 

These type firms buy small successful company's to crash them. They become the losses that keep the major investments alive. I'm sure it's a tax thing.

 

Guess it coulda' been worse, they could of been bought out by the Hoffman Group

 

Same difference ...

 

Barbarians at the gate!

 

This is not new! WR Grace bought a bunch of manufacturers in the seventies and failed to make it work. Anybody here remember the Lee Eliminators? The theory hasn’t changed in forty years…the MBA’s go to the SEMA show or the NHRA finals and look at the market and manufactures and tell them selves that with our MBA knowledge, we can make this business really profitable. The only thing the MBA’s lack is passion for the industry.

I’m surprised that Jeg’s went this route as he has a couple of sons that were involved with the business. All four of Bill and Joyce’s sons are deeply involved in Speedway and the museum. Edlebrock’s sellout was not really a surprise. No doubt this will be happening more and more as pioneers of the industry cash out.

 

I miss Super Shops!!!

 

Just a sign of the times I suppose. I have gone through the same thing at my own employer...family owned business that sold out after the first generation died and the next generation saw dollars instead of headache. Glad we still have some salvage yards with good stuff and lots of friends with stashes. Honestly, I shy away from 1-800 and www. parts places for the most part anyway. Trying to teach my boys to look for old stuff first too.

 

Brain guys being replaced by money guys!

 

Super Shops started as San Bernardino Racing. I met the owner while he was still in the Air Force up by Victorville. He hailed me down on our cruise route and asked if he could join my San Berdoo Roadster Club. "No, sorry, it's very exclusive (me)." He was going to start a speed shop here when he got out of the service. I told him that might not work as we already had Fred Peake's and Scotty's Muffler Service. But he did. And it grew into Super Shops, the world's largest BF Goodrich dealer (or was it Goodyear?). It's gone. But Scotty's still here!

 

no more free hats?

 

Thats all well and good for you. However, many places in this country have no junk yards left to speak of. And us guys that race these old cars are not going to find a blower, blower belt etc. in a salvage yard. I do understand your point, just saying.