5 ms·

They had no choice but to expand. They had a fairly large corporate office, which needed income from a lot of sites to cover the overhead. I was thinking about

They had no choice but to expand. They had a fairly large corporate office, which needed income from a lot of sites to cover the overhead. I was thinking about investing and got a good look at the financials - only the three Bay Area shops were profitable. Bottom line, they overestimated how many makers out there are willing to pay $150 per month to support their laser cutter habit.

Animats 9y ago
The three Bay Area shops were all profitable? Then someone may buy at least one of them.
- icantdrive55 9y ago
  Usually the Bankruptcy Refree hires really shady resellers. Those machines will be pieced out--down to the coffee maker. Tip to those buying; find the guy in the back, barking orders at temp liquidators, with a hint of a Martinni on his breath, and quietly ask him about deals. Make sure he knows you have cash. I have always found bankruptcy sales depressing.
- URSpider94 9y ago
  I have a fantasy that someone like Google or Facebook, or even a wealthy angel, might be willing to buy all three. If you got them out from under their debt obligations and removed the need to support a corporate HQ, I think it would be do-able. @dang - YC should buy them!!!
viewtransform 9y ago
Could you reveal whether the Bay Area shops were borderline profitable or operating with decent margins ? I was surprised that they managed to stay open for more than a decade and assumed that they had figured out a decent sustainable business model.
- URSpider94 9y ago
  It's been a little while, my recollection is that they were narrowly cash-flow profitable, but I don't recall at this point whether that included debt service, and this is before they took on a ton of debt to relocate the San Jose facility. I'm pretty sure if they can get rid of all of their debt, they would make a little bit of cash. But not enough to justify their billing as a start-up. The other looming issue is that a lot of the equipment at the Bay Area sites is, er, well-loved, and will need to be replaced over the next few years, which is a major capital expense. At the Redwood City shop, the laser cutters are all getting pretty run-down.
- bagels 9y ago
  San Francisco and Mid-Peninsula were break even (as of 2015). The rest, including San Jose were hemorrhaging money.
  - cr0sh 9y ago
    I'm kinda surprised to think that about the "Phoenix" (Chandler) location; they were essentially "given" the building they used by the city; it was also a shared space with some portion of ASU (IIRC). I wonder what will happen with that ASU program (I think it was part of the engineering school)? I wonder if they will simply take over the space and continue using it (though probably closed to the public)?

Animats 9y ago

The three Bay Area shops were all profitable? Then someone may buy at least one of them.

icantdrive55 9y ago
Usually the Bankruptcy Refree hires really shady resellers. Those machines will be pieced out--down to the coffee maker. Tip to those buying; find the guy in the back, barking orders at temp liquidators, with a hint of a Martinni on his breath, and quietly ask him about deals. Make sure he knows you have cash. I have always found bankruptcy sales depressing.
URSpider94 9y ago
I have a fantasy that someone like Google or Facebook, or even a wealthy angel, might be willing to buy all three. If you got them out from under their debt obligations and removed the need to support a corporate HQ, I think it would be do-able. @dang - YC should buy them!!!

viewtransform 9y ago

Could you reveal whether the Bay Area shops were borderline profitable or operating with decent margins ? I was surprised that they managed to stay open for more than a decade and assumed that they had figured out a decent sustainable business model.

URSpider94 9y ago
It's been a little while, my recollection is that they were narrowly cash-flow profitable, but I don't recall at this point whether that included debt service, and this is before they took on a ton of debt to relocate the San Jose facility. I'm pretty sure if they can get rid of all of their debt, they would make a little bit of cash. But not enough to justify their billing as a start-up. The other looming issue is that a lot of the equipment at the Bay Area sites is, er, well-loved, and will need to be replaced over the next few years, which is a major capital expense. At the Redwood City shop, the laser cutters are all getting pretty run-down.
bagels 9y ago
San Francisco and Mid-Peninsula were break even (as of 2015). The rest, including San Jose were hemorrhaging money.
- cr0sh 9y ago
  I'm kinda surprised to think that about the "Phoenix" (Chandler) location; they were essentially "given" the building they used by the city; it was also a shared space with some portion of ASU (IIRC). I wonder what will happen with that ASU program (I think it was part of the engineering school)? I wonder if they will simply take over the space and continue using it (though probably closed to the public)?