Ummm... youall do realize that letter mentions the $78,000 so as to limit the maximum that the court will pay in the final settlement. It does NOT say that Parallax just lost $78,000. In fact, that has yet to be decided.
On the other hand, if you were the proud owner of Radio Shack publicly traded common stock, the filing confirms that your stock is now worth $0.
With a bit of luck, Parallax may get something.... 50 cents on the dollar owed, 10 cents, 5 cents.... nobody knows. The bankruptcy court will decide in the months ahead, maybe years ahead.
++++++++
If you really want to help Parallax, publish some really useful and exciting Propeller Kickstart projects. Radio Shack ended up selling bushels of these boards for something like $7.80USD and there are tons of people that would love to get started with an easy to follow project.
===========
Please consider giving money for the medical care of Wendy Savage if you are feeling generous. I think Parallax will survive --- besides, it is just a corporation, not a needy person.
I don't take the loss lightly, and appreciate all of your support. It's difficult to say if somebody else would've got us into the same trap if they were in charge, or if it could have been worse. One certainty I have learned over the years is that a business must take risks that result in both success and failure. And though it sounds like a cliche' each win or loss increases our experience.
We're thankful for what we've got between Parallax and our customers so I tend to focus on the positive side while learning some key lessons along the way.
Sorry to hear that, Ken. Especially when you are so generous sharing parts & supplies with Forumistas. Here are my suggestions to recoup some of that loss:
1) No contests and stop giving away anything free for a few months.
2) 48-hour pledge-driven Matt Gilliland dance marathon with a live webcam. No slacking, I'll be watching. Web-vote-controlled shock jockstrap keeps Matt moving.
2) $1000 per Parallax hat and you're in the black
Others, please share your suggestions
BTW, I found Parallax in 1994 in N&V magazine while researching controllers for the THFFRC (robot contest) but of course I bought everything else at the Shack. The rest is boring history.
Ummm... youall do realize that letter mentions the $78,000 so as to limit the maximum that the court will pay in the final settlement. It does NOT say that Parallax just lost $78,000. In fact, that has yet to be decided.
The document contains what Radio Shack itself listed as its debts. For a debt of this nature recovery is likely a big fat zero, or very close to it. Given the size of RS's liabilities, it's a foregone conclusion there will be no money to repay unsecured creditors.
Ken, being on the short end of the BK stick is just a part of business life, sadly. In the mid-80s I found myself owed over $21K by a publisher. I kept working with the publisher after the filing, and while I had to effectively write off the full loss, in the end I do believe I came out okay. A few years after all that, the publisher had come out of Chapter 11, and I struck up some good deals, including being able to launch my own magazine. Even after I left it to pursue other opportunities, the title continued publishing for over 10 years, a success I could exploit to get other work.
So, you never know. Your CPA will advise how to soften the blow of the $78K, and you're right about RS likely surviving this in one form or another. Given the right net terms, they may once again be an important distributor for you.
In the rather bizarre and convoluted world of bankruptcy, it actually might be wise for Parallax to sell more product to Radio Shack immediately after it comes out of bankruptcy. But it seems like they are changing their business model.
The bottomline is how severe is a $78,000USD loss to the total annual cashflow of Parallax percentage-wise when compared to the household family budget, and was a reserve set aside in anticipation of this? Parallax is a private company, so I don't know and don't care to ask.
I am more concerned by the losses which indivuals suffer from other's bankruptcy. And the short story is we all knew that Radio Shack was rather risky for a long time coming. Overall, I supect Parallax profited from the relationship, just not as much as was agreed to.
The reason that people create a private corporation is so that they can protect a nestegg of wealth for themselves and family outside of what they have in their business. I presume Parallax is that way. A publicly traded corporation creates more reporting and more complex responsiblities, but all have their risks while enjoying limits to liablity.
Writers just starting out can often get snared by a badly managed publisher that never pays royalties as the money is being put into the next great hope of making it big or wasn't entirely collected from the book distributors. There are some famous stories of science fiction authors that gained great fame, but little income -- including Issac Asimov. Fortunately, another publisher later purchased the rights for his classics and made sure he was paid regularly. Late in life, the Foundation series provided him and his family with finacial comfort, but it wasn't always so.
Should Radio Shack emerge from Chapter 11 in any reasonable shape, I'd "leverage" the goodwill as being a trusted but unpaid creditor by asking for special merit in the stores -- things like better product placement in the physical stores and online, for a start. A lot of vendors flatly refuse to do business with a company they lost money to in a bankruptcy, but it can actually be a golden opportunity, if you play it right.
I'm just not sure how much RS is going to continue with hobby electronics. The market doesn't appear to be under-served. The really neat stuff is just a few days away online, and is there really a business model in selling "emergency" resistors?
As to whether Parallax can handle the loss, this is a private matter for the company. Fully agree with your comment, "I don't know and don't care to ask." It's none of our damned business.
I guess a guy could maybe "get rich quick" selling Bankruptcy Insurance!!!! Several years ago I got hosed for several grand by a company that purchased a Server and a few workstations from me along with several hours of labor. The day after I gave them the invoice they filed for Chapter 7. Two days after that they reopened as a different company name using the same equipment I sold them. I spoke to an Attorney and found out that I would end up paying him more than I would get back. Lesson learned. After that I started requiring a 50% deposit for all hardware orders.
Andy, While true a civil action would have cost you, the bankruptcy courts take a very dim view of these kinds of things, which are flatly illegal. A bankruptcy trustee makes his/her income by finding assets and selling them. They get understandably upset when thieves do this sort of thing, and will press criminal charges when they see it.
While Parallax's loss is an interesting line item in that notice, I actually am far more curious to see if Radio Shack stiffed the producers of its Superbowl ads or if they got paid in full before this moved into bankruptcy.
It would indicate how shrewd the big boys are in doing business with a failing business. On one hand, I am pretty sure they had an outstanding obligation to Parallax before they ran those ads; on the other hand, they had enough cash and credit to be willing to try to push a big remake.
IOW, did the vendors in the remake attempt get hit as hard as older debtors and smaller businesses? I suspect some manipulation with the Accounts Payable aging.
That's how I got here. It all started for me with a Boe-Bot from RS.
Kind of the same here. I first heard of Parallax when I saw their "what's a microcontroller" kit at RS. Didn't end up buying that kit from them but it put them on my radar!
"The parent company of troubled electronics retailer RadioShack look set to file for Chapter 11 bankruptcy protection for the second time as soon as Tuesday as it looks to unload even more stores.
..."
Can we as an independent entity, give some recommendations on how their future should evolve. Since we are the consumer, we have the power. It's about time we brought back the needs of the hobbyists. When we want something, we want it now (While were thinking about it). Not two weeks later when the dust has settled in our brain.
While I agree and wish I could buy parts anywhere any time, I accept the evitable. I have adjusted my "plan/hoard ahead" ways and have a great stockpile of all the parts I need in the forseeable future. If China goes bankrupt and stops selling cheap parts, I'm unaffected for 2 years.
And when the zombie apocalpyse comes, I can build all the death ray/zombie zappers (Trademark that, Spaulding!) to protect my Corvair.
Also Silicon Valley is losing Ham Radio Outlet. There will be one up in Oakland though. I guess the interest level is low and the rents are high. (The $35 Baofeng radios on Amazon can't be helping either.) I wonder if they'll consider having a booth at the Electronics Swap meet?
I would be happy if there were just one great Maker oriented store in Silicon Valley. Even here it's getting pretty slim. There's one technical bookstore left (Digital Guru now matching Amazon pricing) and a few B&N's with o.k. technical selection. And then you need to pick and choose from various stores for actual electronics supplies: Fry's Electronics, Jameco, Anchor Electronics, HSC Electronic supply (haven't seen the new downsized store), Evil Mad Scientist (small selection but can be handy), and there must be some I'm missing. (Alltronics? - never been there, or it's been a long time.)
Here in Queens, two RS stores are trying to be closed. Oddly enough for the first, that was where the company wanted to keep a store without a phone store in it.
The second has a good staff, but has management issues, and the first has only one other issue.
They say Chapter 11, but there's also news hinting at liquidation, which would be Chapter 7. So it's hard to tell, really, what's going on. I just hope the local franchise store can still hang on, despite their depleted parts inventory.
It's a trade event, closed to the general public, so you would not be able to attend. Just pointing out that my bots and I were close enough to you that you likely felt a disturbance in the Force. We were all over that city, in the subway and on buses, and left our marks indelibly all over your home turf.
Comments
I want the tee shirt AND a hat.!
That's $30 but you have to pay shipping! (we're trying to recover a loss, remember?
On the other hand, if you were the proud owner of Radio Shack publicly traded common stock, the filing confirms that your stock is now worth $0.
With a bit of luck, Parallax may get something.... 50 cents on the dollar owed, 10 cents, 5 cents.... nobody knows. The bankruptcy court will decide in the months ahead, maybe years ahead.
++++++++
If you really want to help Parallax, publish some really useful and exciting Propeller Kickstart projects. Radio Shack ended up selling bushels of these boards for something like $7.80USD and there are tons of people that would love to get started with an easy to follow project.
===========
Please consider giving money for the medical care of Wendy Savage if you are feeling generous. I think Parallax will survive --- besides, it is just a corporation, not a needy person.
We're thankful for what we've got between Parallax and our customers so I tend to focus on the positive side while learning some key lessons along the way.
Ken Gracey
Parallax is just a small (family) business which just happens to be incorporated. $78,000 is just a salary to just an employee who has just a family.
I've been spreading my generous around - a rising tide lifts all boats!
That's how I got here. It all started for me with a Boe-Bot from RS.
But I don't think I spent $78,000 over the last 9 years.
1) No contests and stop giving away anything free for a few months.
2) 48-hour pledge-driven Matt Gilliland dance marathon with a live webcam. No slacking, I'll be watching. Web-vote-controlled shock jockstrap keeps Matt moving.
2) $1000 per Parallax hat and you're in the black
Others, please share your suggestions
BTW, I found Parallax in 1994 in N&V magazine while researching controllers for the THFFRC (robot contest) but of course I bought everything else at the Shack. The rest is boring history.
The document contains what Radio Shack itself listed as its debts. For a debt of this nature recovery is likely a big fat zero, or very close to it. Given the size of RS's liabilities, it's a foregone conclusion there will be no money to repay unsecured creditors.
Ken, being on the short end of the BK stick is just a part of business life, sadly. In the mid-80s I found myself owed over $21K by a publisher. I kept working with the publisher after the filing, and while I had to effectively write off the full loss, in the end I do believe I came out okay. A few years after all that, the publisher had come out of Chapter 11, and I struck up some good deals, including being able to launch my own magazine. Even after I left it to pursue other opportunities, the title continued publishing for over 10 years, a success I could exploit to get other work.
So, you never know. Your CPA will advise how to soften the blow of the $78K, and you're right about RS likely surviving this in one form or another. Given the right net terms, they may once again be an important distributor for you.
The bottomline is how severe is a $78,000USD loss to the total annual cashflow of Parallax percentage-wise when compared to the household family budget, and was a reserve set aside in anticipation of this? Parallax is a private company, so I don't know and don't care to ask.
I am more concerned by the losses which indivuals suffer from other's bankruptcy. And the short story is we all knew that Radio Shack was rather risky for a long time coming. Overall, I supect Parallax profited from the relationship, just not as much as was agreed to.
The reason that people create a private corporation is so that they can protect a nestegg of wealth for themselves and family outside of what they have in their business. I presume Parallax is that way. A publicly traded corporation creates more reporting and more complex responsiblities, but all have their risks while enjoying limits to liablity.
Writers just starting out can often get snared by a badly managed publisher that never pays royalties as the money is being put into the next great hope of making it big or wasn't entirely collected from the book distributors. There are some famous stories of science fiction authors that gained great fame, but little income -- including Issac Asimov. Fortunately, another publisher later purchased the rights for his classics and made sure he was paid regularly. Late in life, the Foundation series provided him and his family with finacial comfort, but it wasn't always so.
I'm just not sure how much RS is going to continue with hobby electronics. The market doesn't appear to be under-served. The really neat stuff is just a few days away online, and is there really a business model in selling "emergency" resistors?
As to whether Parallax can handle the loss, this is a private matter for the company. Fully agree with your comment, "I don't know and don't care to ask." It's none of our damned business.
I would have had all of the Bot's in their stock preprogrammed to attack and force payment at the first sign of cash-flow problems LOL
It would indicate how shrewd the big boys are in doing business with a failing business. On one hand, I am pretty sure they had an outstanding obligation to Parallax before they ran those ads; on the other hand, they had enough cash and credit to be willing to try to push a big remake.
IOW, did the vendors in the remake attempt get hit as hard as older debtors and smaller businesses? I suspect some manipulation with the Accounts Payable aging.
Kind of the same here. I first heard of Parallax when I saw their "what's a microcontroller" kit at RS. Didn't end up buying that kit from them but it put them on my radar!
Here goes another one.
I think RS has made some bad choices, and corporate hasn't gotten any better at knowing what people want.
I would never have known how much I love programming.
http://fortune.com/2017/03/07/radioshack-bankrupt-again/
"The parent company of troubled electronics retailer RadioShack look set to file for Chapter 11 bankruptcy protection for the second time as soon as Tuesday as it looks to unload even more stores.
..."
Sounds more like Misfortune magazine. Think I saw Radio Shack on the TV's "America's Least Wanted".
Doggonnit, but don't blame me, I did my part. I spent $140 last month at a Shack in Long Beach:
https://forums.parallax.com/discussion/comment/1398375/#Comment_1398375
And when the zombie apocalpyse comes, I can build all the death ray/zombie zappers (Trademark that, Spaulding!) to protect my Corvair.
Oh, and protect my family too.
I would be happy if there were just one great Maker oriented store in Silicon Valley. Even here it's getting pretty slim. There's one technical bookstore left (Digital Guru now matching Amazon pricing) and a few B&N's with o.k. technical selection. And then you need to pick and choose from various stores for actual electronics supplies: Fry's Electronics, Jameco, Anchor Electronics, HSC Electronic supply (haven't seen the new downsized store), Evil Mad Scientist (small selection but can be handy), and there must be some I'm missing. (Alltronics? - never been there, or it's been a long time.)
The second has a good staff, but has management issues, and the first has only one other issue.
Oh and erco why are your robots all moving out?
-Phil
Buck, my robots really were running around the Javits center at NYTF 2 weeks ago. Where were YOU?
Huh? I don't get e-mail from that group. And there wasn't any mention here.