Oct. 18, 2004 – Global’s New Show Format is a Hit
Global Motorsport Group’s new format that combined shows for its Custom Chrome and Motorcycle Stuff companies for the first time was successful in attracting plenty of dealers.
The show, held Oct. 8—10 at Global’s Morgan Hill, Calif., headquarters, drew more than 2,000 people from some 1,200 dealerships, said Dave Scott, director of communications. A total of 176 vendors participated.
“Obviously, we have dollar order objectives that we can measure,” said Scott, who said the show was a success. “We tried to gauge the dealer reaction and it all seemed to be positive.”
There was plenty of news at the show, as well. Global announced that it has signed an agreement in principle for a new $90 million credit facility. The deal is scheduled to close Oct. 29, 2004.
Global has been struggling with a cash flow problem since an earlier refinancing package fell through last year. The company had been paying interest and principal on a large loan incurred when current owner Stonington Partners took Global private in 1999.
The cash flow problem caused Global to get behind in payments to several vendors, a situation that has since been remedied, said Scott during an interview with Powersports Business. “We’re current and have been for the past three months,” he said.
At the same time, Global was forced to let its inventory levels slip, a move that hurt its fill rate earlier this year. Those rates have since improved, Scott said.
In June, the best fill rate in its six warehouses for its top 2,600 products was only 48%, Scott said. The overall fill rate on those top products improved to 70% in July and 80% in August. It’s now in the low 90s to mid 90s, he said. “In talking with our dealers,” he added, “it’s gotten unbelievably better and they’ve noticed, and that’s the key.”
Global also announced that it has hired Geoff Burgess, a top international motorcycle engineer, to head its technical operations.
Burgess most recently was vice president of product development at S&S Cycle, the Viola, Wisc., engine maker. He also has held engineering positions at BSA, Victory Motorcycle, Ski-Doo and General Motors.
In other news from the show, Roger Goldammer, of Goldammer Cycle Works Ltd., Kelowna, British Columbia, Canada, won the World Championship of Custom Bike Building in the freestyle class. He took home a trophy and $25,000 for his efforts. Second place went to Jesse Jurrens & Michael Prugh of Independent Cycle, Inc., Rapid City, SD, and third place honors were grabbed by Fred ‘Krugger’ Bertrand of Krugger Motorcycles, Basse-Bodeux, BELGIUM.
The first place trophy in the HR3 Class was won by Paul Binford of Binford Custom Cycles, Manteca, Calif. Second place went to Dawn Norakas & Butch Mitchell of Stinger Custom Cycles, Cedar City, UT. Third Place was won by Rich DeSha & Ron Thomas of Central Valley Choppers, Chowcilla, Calif.
First place in the OEM Class was won by Art Hendey Jr. of Performance Meter, Beaumont, Calif. Second place was taken by Billy Enders of Bill’s Monterey Custom Motorcycles, Seaside, Calif., and third place went to Paul Binford of Binford Custom Cycles, Manteca, Calif.
