After Beverly Hills closing, what's next?

[astcell]

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]

Holy guacamole!

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

[astcell]

It's the American way!

[ijen0311]

Originally Posted by astcell

It's the American way!

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

Seriously, I did.

[postiff]

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.

[mretzloff]

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).

[Bisquitlips]

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!!!

[rob]

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

[Boopie]

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.

[Omega_Precision]

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.

[txbikerdude]

wow

[rcher]

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.

[cody p]

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]

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.

[chenx15]

if it happens it happens.

[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.

[greekbum]

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.

[Omega_Precision]

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]

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]

[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]

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.

[CPCC]

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

[astcell]

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.

[gregdolley]

Rolex USA declaring bankruptcy? I don't see it happening. There are still a lot of rich people making money (some making more money than before the economic downturn). And Rolex's more blingy newer models entice rich people more than tool watches. Plus, we all know Rolex's markup is huge, so if things got really bad for them, they'd start offering "special" discounts to AD's. The AD's, in turn, would offer greater discounts to their potential customers.

[seantk]

Robert,

Interesting information! I hope not though

How long should we wait until we dig this thread up and see if it holds any truths!

Sean

[diablojota]

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]

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]

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.

[fsujp]

Frank,

From what I hear the Carlyle in Tally mall is no longer stocking Rolex in the store. You can still order them, but as far as I know, in store sales have fallen off of a cliff.

[diablojota]

Originally Posted by fsujp

Frank,

From what I hear the Carlyle in Tally mall is no longer stocking Rolex in the store. You can still order them, but as far as I know, in store sales have fallen off of a cliff.

That's what the guy at the Gem Collection said as well about Carlyle. I used to like the collection at Carlyle, much better than at the Gem Collection. But then again, the Tally mall has really gone downhill as well, IMO.