Jegs Performance

Does not sound like the Coughlins are upset! They wanted to sell, but still get to keep a minority ownership. 

 
They will be Knee deep in Reports, that will be there life, Reports, Reporting, and Conference calls.  

But i will say, jegs is so hard to deal with, shipping price has doubled, very little stocking parts, and shipping for faster than Jegs shipping is expensive compared to other sites, 

Jegs was the number one customer service and price,  If they would have stuck to that, then i dont think they would have to sell,  

Summit racing for me has better customer service, No BS with the Customer Service Reps,  but other sites are nipping at the heals boutique parts, Like LS parts only, I think Summit has a all around good communication on when and where the parts will be, 

Jegs will show unrealistic ship dates, or will give false in stock data,   

 
You have think big picture here ....This has nothing to do with the level of customer service or lack thereof - 

While this sucks,  This is an industry trend - Not one that most of us like  ...

With many of these companies in their second and third generation of family ownership, face a current market of investment bankers  buying existing companies and paying owners big payouts they can easily retire on in the 20's 30's 40's ... these companies "say"  that they "improve efficiency" and flip these companies  - read that move engineering to China and cut quality pay employees less and cut their number, and just beat up suppliers ...

This has accelerated in the performance industry over the last 5 years .. because these companies are Not investing in startups in the Us like they were in the 90's 2000's   there is a Huge capital overhang.  The VC game their LPs have changed up the game (for the worst) and this is the result

Similar to these guys buying up block of houses ... thats a huge trend for Private equity - too much $$ and nit eniugh startups to invest in (or good ones anyway - how many Facebook and Instagram and You tube clones can you invest in ...)

The one company (or group)  most people recognize is the Holley group that is owned by an Private Equity Group- but the least evil with some independent control 

You have to realize Holley us Comp Cams, MSD, Flowmaster, Earls Pluming, Hurst, Accel, Brothers Trucks, Baer Brakes, Rocker racing wheels, Mr. Gasket, ADS shocks (some if us used them).  This new Investment group has also bought into Tremec, and  a half dozen companies makes sheetmetal for muscle car restoration in China.
and it continues ... https://investor.holley.com/news/news-details/2022/Holley-Revs-Its-Acquisition-Engine-Acquires-Four-Enthusiast-Brands-in-Highly-Strategic-Product-Categories/default.aspx

In So Cal Edlebrock was a big one, Scat is another. Wheel and tire companies are being swallowed up by My Buddy Wade Kawasaki  after he took over Coker Tire and was bought out by the same type group and is now running Legendary Company - they own Coker and a half dozen wheel manufacturers. Wade is great example, he was Chairman and CFO of SEMA he knows the industry and the players and he built the investorsa profitable portfolio and does OK for himself along the way (he has some Nice cars now 🙂

Even Eastwood is owned by Kian Capital another investment group - what is funny is that Eastwood like Holley and few others were owned by investment groups  that sold to new  private equity investment groups  BCL owned Eastwood for 2 years  and turned them from a catalog company to big e-commerce site  with 3x the number of brands - not just their own and added a bunch of Chinese products  and sold it to Kian

The Distributors Like Summit and Jegs - while still selling these products are going to China and building their own lines (usually its just ebay crap).

This trend will continue until they all suck at customer service and all sell crap 

The hot rodders that built these companies are mostly dead and gone  - like the car culture in LA 

A last hold out is Isky  only because Ed is still kicking ... 

Reality blows ...

 
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@Fullthrottleguy commented about Isky being the last hold out. that got me to wondering about Crower.  Are they still privately owned?  they make some bitchen parts. 

 
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Bobalos said:
@Fullthrottleguy commented about Isky being the last hold out. that got me to wondering about Crower.  Are they still privately owned?  they make some bitchen parts. 
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Good call  - I think Bruce crower is still around  and probably running it  - I have not thought about them for a while. I used their clutches in my old Camaro race car  - their cams were always a bit on the wild side

 
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