||11-03-2007 10:53 AM
As a PDQ owner, I received the following email yesterday from one of its brokers.
"This week we were notified by PDQ management that they were “closing their doors” until a buyout by new investors can be finalized.
In spite of the PDQ’s popularity and success in the market, it appears that a number of factors have all combined at the same time to force PDQ into this action.
PDQ’s profitability has been eroding rapidly due to the significant increases in material costs, the historic devaluation of the US dollar (vs the Canadian dollar) and the recent slowdown in the entire recreational boating market has effectively dried up new orders. As you know, pricing on the new PDQ’s has escalated in the last twelve months, but has not kept up with their costs and has left them with insufficient cash to continue operating.
This is obviously a very sad day for [us], but more so for the outstanding PDQ employees with which we have had the opportunity to work. For those of you who have had contact with the PDQ staff, I think you will agree that we could not find a more professional or dedicated group of people in the industry! The PDQ team developed an outstanding product and they were very proud to deliver and support it.
The good news is that [xx], who has been the VP of Marketing, is leading a buyout of the company by a group of private investors. It will take some time for the details of this buyout to be completed, but [we are] optimistic that PDQ will be back in operation, with adequate capital to continue producing the PDQ product line. We sincerely hope that the new investors will keep the core design, production, commissioning and marketing staff intact (that is their plan) as they were an incredible team and certainly stood out as “the best” in the industry. "