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astcell · 31 March 2009, 12:02 PM

I talked to a Rolex dealer today who owns several jewelry stores and does high volume in second hand Rolexes. He told me that he is not surprised by the BH store closing, although the employees are not supposed to be talking about it.

He also said he has been in the business long enough to see what is next. He says that there is talk that Rolex USA will declare bankruptcy and then Rolex Geneva will stop production of watches for about four months to get the demand back up where it belongs. Sales are off 40% and no one is happy.

No idea if he is right or not but from the way the economy is, anything can happen. I wanted to get his comments written down so we can look back at them later and laugh, or cry.

ijen0311 · 31 March 2009, 12:04 PM

Holy guacamole!

Rolex declaring bankruptucy would be quite the blow to their name, I would think.

Bisquitlips · 31 March 2009, 12:19 PM

Quote:

Originally Posted by ijen0311

Holy guacamole!

Rolex declaring bankruptucy would be quite the blow to their name, I would think.

Wow! X222222.1763!!!!!!!!

Perish the thought!!!

Boopie · 31 March 2009, 12:21 PM

Presumably, Rolex could slow or stop production for a few months anyway, with no need for Rolex USA to declare bankruptcy. It would be a huge blow to the Rolex name to declare BK.

astcell · 31 March 2009, 12:08 PM

It's the American way!

ijen0311 · 31 March 2009, 12:10 PM

Quote:

Originally Posted by astcell

It's the American way!

Well... I bought 5,00 shares of AIG today

Seriously, I did.

mretzloff · 31 March 2009, 12:15 PM

Quote:

Originally Posted by ijen0311

Well... I bought 5,00 shares of AIG today

Seriously, I did.

"AIG, the strength to be there"

I miss their commercials.

Anyway, I wonder how this is affecting companies, such as A. Lange & Söhne, that only produce a few thousand watches a year (A. Lange & Söhne produces 4,000 I believe).

cwru32 · 1 April 2009, 01:30 PM

Quote:

Originally Posted by ijen0311

Well... I bought 5,00 shares of AIG today

Seriously, I did.

you r a smart cookie ;]

postiff · 31 March 2009, 12:13 PM

Quote:

Originally Posted by astcell

It's the American way!

Not my way!

Sad if this happens but good thing I bought my watch when I did and good thing I do not want any more. At least for now.

rob · 31 March 2009, 12:20 PM

Rolex will hire ex GM CEO, then ask the President Obama for bail out money.

Omega_Precision · 31 March 2009, 12:29 PM

I would welcome a Rolex bankruptcy like many others as well.

Hopefully, they will learn their lesson that bling is not the way to go and start making more tool-like watches.

rcher · 31 March 2009, 12:46 PM

Quote:

Originally Posted by Omega_Precision

Hopefully, they will learn their lesson that bling is not the way to go and start making more tool-like watches.

Haven't the tool watches been their bread and butter for many, many years?

The whole tacky, gaudy bling thing seems to be the antithesis of what made Rolex the standard by which all others are judged.

oh, well..... at least Porsche hasn't gone down that road.

You gotta dance with the one that brung ya.

Blown Wide Open · 1 April 2009, 12:54 PM

Quote:

Originally Posted by rcher

oh, well..... at least Porsche hasn't gone down that road.

You gotta dance with the one that brung ya.

Cough...Cayenne Turbo...Cough..

PAtrick

rcher · 1 April 2009, 01:16 PM

Quote:

Originally Posted by Blown Wide Open

Cough...Cayenne Turbo...Cough..

PAtrick

Touche. I stand corrected.

txbikerdude · 31 March 2009, 12:38 PM

wow

cody p · 31 March 2009, 12:48 PM

something's definitely in the air these days. rolex has had an aura of praeternatural invincibility for far too long. what goes up must come down, eventually.

greekbum · 31 March 2009, 01:02 PM

I see an end to the business model of having ad's in the USA.
Rolex official stores and boutiques are going to be the future.
This is the only way they can control the market for themselves.

Omega_Precision · 31 March 2009, 01:51 PM

Quote:

Originally Posted by greekbum

I see an end to the business model of having ad's in the USA.
Rolex official stores and boutiques are going to be the future.
This is the only way they can control the market for themselves.

I think AD's are the driving force for Rolex. AD's give that Omega, TAG, and Breitling the option of walking over to the Rolex display and buying a Rolex. A boutique would offer no variety, so you are essentially targeting one group of customers.

Boutiques would merely drive costs up. The cost of operating these boutiques. With a Rolex store, discounts would be long gone.

It is the "secret" discounts that AD's are giving that are selling these watches. These watches are either sold to consumers or grey dealers. As long as the watches are off the shelves or out of the case. Rolex doesn't care where it goes.

Boutique=no discount; especially when they are regulated by Rolex.

greekbum · 31 March 2009, 01:59 PM

Quote:

Originally Posted by Omega_Precision

I think AD's are the driving force for Rolex.

Boutiques would merely drive costs up. The cost of operating these boutiques. With a Rolex store, discounts would be long gone.

It is the "secret" discounts that AD's are giving that are selling these watches. These watches are either sold to consumers or grey dealers. As long as the watches are off the shelves or out of the case. Rolex doesn't care where it goes.

Boutique=no discount; especially when they are regulated by Rolex.

I agree that Boutique=no discount.The secret discount we all know about is Rolex number 1 problem.I am sure they are working on making it go away.We all know msrp on most watches is a joke right?This was Rolex main advantage no big discounts never.

Marrk · 31 March 2009, 02:06 PM

[QUOTE=greekbum;1077871The secret discount we all know about is Rolex number 1 problem.[/QUOTE]

Why would this be a problem for Rolex (the wholesaler)? It is the AD (the retailer) who takes the hit when a piece is discounted.

Or am I missing something here? Maybe I don't understand what you mean by "secret" discount.

Wolfgang427 · 31 March 2009, 02:48 PM

I doubt Rolex-USA would declare bankruptcy as their building on 5th ave in NYC is worth mega millions.

However there is rumors circulating on 47th st in NYC that they are looking at renting out the building or possible selling it and moving their service and distribution to LIC in Queens-NY as demand for servicing Rolex watches has dropped big time and watchmakers are sitting idle with no work to do.

Tcat55 · 1 April 2009, 08:57 AM

I heard that rolex lost about 900 million with bernie madoff anyone else heard about this

chenx15 · 31 March 2009, 01:06 PM

if it happens it happens.

diablojota · 31 March 2009, 01:37 PM

To be honest, I'd be surprised if it actually happens. Not that it isn't likely, but we may never know considering how secretive they are. Given they are a private company they have no need to disclose any financials. However, I would be willing to bet Switzerland will make sure they won't declare bankruptcy.

greekbum · 31 March 2009, 01:47 PM

Quote:

Originally Posted by diablojota

To be honest, I'd be surprised if it actually happens. Not that it isn't likely, but we may never know considering how secretive they are. Given they are a private company they have no need to disclose any financials. However, I would be willing to bet Switzerland will make sure they won't declare bankruptcy.

I dont even smell bankruptcy.It is 1 of the best known brands in the world.They have never leveraged this.Sure its a very slow worldwide watchmarket at the moment.It will be interesting to see what the new ceo does.Does he adapt to the new enviroment?They are not a public company so it is hard to follow.I feel they dont need money and are well capitalized.

CPCC · 31 March 2009, 03:05 PM

Not happening. If GM and Chrysler are not going to go under, Rolex definitely wont.
Rolex actually has a good product.

astcell · 31 March 2009, 03:17 PM

Quote:

Originally Posted by CPCC

Not happening. If GM and Chrysler are not going to go under, Rolex definitely wont.
Rolex actually has a good product.

So did Circuit City.

diablojota · 1 April 2009, 04:08 AM

Quote:

Originally Posted by astcell

So did Circuit City.

Really? I found that they couldn't compete with the others as their stores tended to be smaller, more cluttered and the prices way too high. I didn't even find that their products were any better than any other big-box electronics retailer, and their staff became less and less knowledgeable. I dunno, just my perspective.

But I have heard that Carlyle and Co. may be on the brink of bankruptcy per my AD.

timetravel125 · 1 April 2009, 04:36 AM

With the new world order, everything is possible in this day and age. I never thought that the Big Three, will suffer financial blows, like what we're seeing.

If WalMart and McDonald's will go under, then, I could definitely say, we are in deep trouble.

But, then again, there is always, hope!

Cheers.

diablojota · 1 April 2009, 04:50 AM

Quote:

Originally Posted by timetravel125

With the new world order, everything is possible in this day and age. I never thought that the Big Three, will suffer financial blows, like what we're seeing.

If WalMart and McDonald's will go under, then, I could definitely say, we are in deep trouble.

But, then again, there is always, hope!

Cheers.

It's funny you mention McDonald's and Walmart. Both are thriving in this economic climate as people are trying to get the best deals they can. When the economy improves, I wouldn't be surprised to see these two lose some of the earnings that they've been posting as of recent.

31 March 2009, 12:02 PM	#1
astcell "TRF" Member Join Date: Aug 2006 Real Name: Robert Location: Angelus Oaks, CA Watch: 116713 Posts: 6,828	After Beverly Hills closing, what's next? I talked to a Rolex dealer today who owns several jewelry stores and does high volume in second hand Rolexes. He told me that he is not surprised by the BH store closing, although the employees are not supposed to be talking about it. He also said he has been in the business long enough to see what is next. He says that there is talk that Rolex USA will declare bankruptcy and then Rolex Geneva will stop production of watches for about four months to get the demand back up where it belongs. Sales are off 40% and no one is happy. No idea if he is right or not but from the way the economy is, anything can happen. I wanted to get his comments written down so we can look back at them later and laugh, or cry. __________________ SS GMTII "D", TT GMTIIc "Z"

31 March 2009, 12:08 PM	#5
astcell "TRF" Member Join Date: Aug 2006 Real Name: Robert Location: Angelus Oaks, CA Watch: 116713 Posts: 6,828	It's the American way! __________________ SS GMTII "D", TT GMTIIc "Z"

31 March 2009, 01:02 PM	#17
greekbum "TRF" Member Join Date: Apr 2007 Real Name: Nikos Location: Florida Watch: Rolex GMT 16750 Posts: 8,418	I see an end to the business model of having ad's in the USA. Rolex official stores and boutiques are going to be the future. This is the only way they can control the market for themselves. __________________ Follow Me On Instagram @nickgogas Original Owner ROLEX 16750 GMT Daily Wearer For Over 13,000 Days And Counting

31 March 2009, 01:06 PM	#23
chenx15 "TRF" Member Join Date: Oct 2008 Location: somewhere Posts: 2,891	if it happens it happens. __________________ 16 GS Titles 16 AMS titles (1 short of Agassi) 23 Consecutive GS semifinals 17/18 of the last GS finals, 237 consecutive weeks #1 5 consecutive wimbledon + 1 = 6 cups 5 consecutive US open 4 Australian open 1 Sweet french open a crown for every achievement The Greatest Of All Time loves Rolex

31 March 2009, 03:05 PM	#26
CPCC "TRF" Member Join Date: Dec 2007 Real Name: Bill Location: USA Posts: 1,857	Not happening. If GM and Chrysler are not going to go under, Rolex definitely wont. Rolex actually has a good product. __________________

31 March 2009, 12:04 PM	#2
ijen0311 "TRF" Member Join Date: Dec 2008 Real Name: Jen Location: Jax, FL Watch: Sea-Dweller Posts: 3,977	Holy guacamole! Rolex declaring bankruptucy would be quite the blow to their name, I would think.

31 March 2009, 12:21 PM	#4
Boopie "TRF" Member Join Date: Aug 2007 Location: Beverly Hills, CA Watch: Yachtmaster Posts: 3,952	Presumably, Rolex could slow or stop production for a few months anyway, with no need for Rolex USA to declare bankruptcy. It would be a huge blow to the Rolex name to declare BK.

31 March 2009, 12:20 PM	#10
rob 2024 Pledge Member Join Date: Aug 2007 Location: Northern Ca. Watch: SS only Posts: 865	Rolex will hire ex GM CEO, then ask the President Obama for bail out money.

31 March 2009, 12:29 PM	#11
Omega_Precision Banned Join Date: Dec 2008 Real Name: Henry Location: CA, US Watch: ing basketball Posts: 2,977	I would welcome a Rolex bankruptcy like many others as well. Hopefully, they will learn their lesson that bling is not the way to go and start making more tool-like watches.

31 March 2009, 12:38 PM	#15
txbikerdude Member Join Date: Feb 2009 Location: texas Posts: 622	wow

31 March 2009, 12:48 PM	#16
cody p "TRF" Member Join Date: Jun 2008 Location: Canada Watch: Air-King 114200 Posts: 2,878	something's definitely in the air these days. rolex has had an aura of praeternatural invincibility for far too long. what goes up must come down, eventually.

31 March 2009, 02:06 PM	#20
Marrk "TRF" Member Join Date: Mar 2008 Real Name: Mark Location: Los Angeles Watch: 5513 Posts: 2,192	[QUOTE=greekbum;1077871The secret discount we all know about is Rolex number 1 problem.[/QUOTE] Why would this be a problem for Rolex (the wholesaler)? It is the AD (the retailer) who takes the hit when a piece is discounted. Or am I missing something here? Maybe I don't understand what you mean by "secret" discount.

31 March 2009, 02:48 PM	#21
Wolfgang427 2024 SubLV41 Pledge Member Join Date: Aug 2006 Real Name: Wolfgang Location: New Jersey. Watch: Rolex Tudor Omega Posts: 5,592	I doubt Rolex-USA would declare bankruptcy as their building on 5th ave in NYC is worth mega millions. However there is rumors circulating on 47th st in NYC that they are looking at renting out the building or possible selling it and moving their service and distribution to LIC in Queens-NY as demand for servicing Rolex watches has dropped big time and watchmakers are sitting idle with no work to do.

1 April 2009, 08:57 AM	#22
Tcat55 "TRF" Member Join Date: Mar 2009 Location: ohio Posts: 8	I heard that rolex lost about 900 million with bernie madoff anyone else heard about this

31 March 2009, 01:37 PM	#24
diablojota "TRF" Member Join Date: Mar 2006 Real Name: Frank Location: Chattanooga, TN Watch: SS Submariner Date Posts: 4,042	To be honest, I'd be surprised if it actually happens. Not that it isn't likely, but we may never know considering how secretive they are. Given they are a private company they have no need to disclose any financials. However, I would be willing to bet Switzerland will make sure they won't declare bankruptcy.

1 April 2009, 04:36 AM	#29
timetravel125 "TRF" Member Join Date: Mar 2007 Real Name: Louie Location: California Watch: Rolex Posts: 644	With the new world order, everything is possible in this day and age. I never thought that the Big Three, will suffer financial blows, like what we're seeing. If WalMart and McDonald's will go under, then, I could definitely say, we are in deep trouble. But, then again, there is always, hope! Cheers.

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