Will Rolex ever go bankrupt?

[Brunotheboxer]

no

[charliec]

Why? Are you hoping all models will become extremely rare and treble in value overnight??

[chazha]

No. I know so many people who want a Rollie you guys wont even believe it. The only thing that stops them buying one is they cannot afford it. And these people they have loads of friends with the same interest. Well thats is back in China :-D

[JJ Irani]

Not till they've squeezed all of us dry and then.....maybe not!!

[STEELINOX]

EEEYowee !

[Scojay]

...Only if they go public; and then they can get a gov't bailout.

[Lol-x]

Technically anyone can go bankrupt.

Practically and realistically, the chance of Rolex going bankrupty is extremely remote that it would not even rate on the radar.

[Goodwatch]

No. Firstly, is this legally possible as Rolex are a foundation? Rolex are not a Ltd. or Corp. But I'm not a lawyer so I don't know this. Furthermore, the market that Rolex caters for consists of people who will buy a watch in this price bracket anyway. And like Peter said, Rolex was one of the manufacturers that sailed through that very tough storm in the seventies

[Nakow]

Rolex is a big fish !! Lets start observing the other small watch companies first ,which direction are they going with the current crises ,then Rolex comes after !

[f16570]

They might have tighten their belts, but I would say they will be okay.

[rolex_addict]

i highly doubt!

[Latrodectus]

sure not

[SLS]

I think JJ has a better chance of growing his hair back!
~Scott

[JJ Irani]

Originally Posted by SLS

I think JJ has a better chance of growing his hair back!
~Scott

So how the hell did I get dragged into this one?

[KenrickJ]

Countries would go down before Rolex would be bankrupt =)

[Perdu]

I voted yes because I did not read the words "in this ecomonic crisis" But one day, yes, because all companies have a lifespan. I do think Rolex price increases were badly timed.

[Blown Wide Open]

Ten grand for a stainles steel chronograph with either a white or black face and there are waiting lists 20 persons deep?

I think Rolex will mubble through.

PAtrick

[mretzloff]

I fail to see how a company that is not-for-profit can go bankrupt...

Either way, there isn't the slightest chance. The quantity of Rolexes demanded may fluctuate, but the demand itself will always be there.

[Nica64]

Don't think so....... Other brands will go first.

[DJF881]

Originally Posted by mretzloff

I fail to see how a company that is not-for-profit can go bankrupt...

Happens all the time. Not-for-profit doesn't mean that it does not require capital. It also doesn't mean that it can't utilize credit. If a not-for-profit doesn't have capital to pay its debts or continue its operations, it goes bankrupt.

[bodybump]

Bank will..but not Rolex

[waltk1026]

As posted earlier I believe Rolex is a trust or something like that, kind of like a non profit organization, I doubt if they would or could run out of money.

[folexhater]

Originally Posted by teo

Will Rolex goes bankrupt in this economic crisis or depression? What you think Rolex watch will worth if the company close down?

Sure! When pigs fly!

[JJ Irani]

Originally Posted by folexhater

Sure! When pigs fly!

[cstegall]

ANY company can bankrupt itself. Sometimes economics is the driver and sometimes it is by company choice.

If Rolex was to bankrupt and they reorganized into a vehicle that still sold a quality watch in different volumes....would we care? Wouldn't we still buy the watch? Of course we would.

Sorry for the thread hijack...the original question is whether or not Rolex will be able to ride out the current "developing" worldwide economic recession? I think they will but they may be a little leaner for the process.


Clark

[Lol-x]

Will Rolex ever go bankrupt?
Well no one has a crystal ball.

However, just to look at this from a technical perspective.

Bankruptcy in the corporate/trust sense means when the relevant entity is unable to pay its debts as and when they fall due.

Now Rolex is a company that is owned by a charitable trust.

Rolex the company and the controlling trust are very asset rich.

However, suppose the day arrives when:
(a) People no longer care for Rolex; or
(b) Wristwatches for whatever reason (technological obsolescence or a fashion trend or otherwise become redundant).

Rolex may:
(a) diversify into who know what, and still trade profitably;
(b) cease to trade altogether;
(c) continue to trade as it does now, but unprofitably.

Whatever happens, as long as Rolex can pay its bills and employees at the end of the day it will not become insolvent.

If Rolex ceased to make a profit and made an annual loss, the question might be how long could Rolex and the controlling charitable trust supporting Rolex continue to support this unprofitable trading? This is difficult to say, but given their enormous wealth, it is rumored to be many many decades.

Only when Rolex the company and the controlling charitable trust are unable to pay the debts incurred on a daily basis (from profits and reserve funds and if necessary liquidating assets) would the company and trust possibly go into liquidation and possibly be sold off to a third party.

There is no chance, as far as I can see, this possibly happening in the far foreseeable future

Welcome to the Law of Insolvency 101

[mdx77]

I thought Rolex printed its own $$$$$$.......

[cstegall]

Steve,

You may have a pet squirrel that's rapidly becoming a lush....but you did a great job explaining the situation that would drive Rolex to "rethink" its market presence.

Nice job.


Clark

[JJ Irani]

Thanks for that interesting explanation, Steve!!

[GradyPhilpott]

A Rolex watch is practically legal tender at almost every coordinate on Earth.

The economy might collapse, but the trade in Rolexes will continue.

Rolex can expand or contract its production as the market demands.

Anything can happen, but I don't see things getting so bad that Rolex would cease to exist.

It is my considered opinion that Rolex exists as it does today because it's what the people want.

Marine Lt. Gen. Victor Krulak was once asked why America needs a Marine Corps. His response was that America does not need a Marine Corps. America wants a Marine Corps.

Similarly, the world does not need Rolex. The world wants Rolex and Rolex has demonstrated the ability to deliver what the world wants.