Pelikan is in Trouble

[sgphototn]

It's not unusual for companies with severe financial difficulties to float 'solutions' to the public, no matter how unrealistic those solutions might be.

 

Such pronouncements give time for the company to appear to be looking forward rather than trying to stem the tide of bad news for the public, employees, and possible investors.

 

Is the news true? I don't know. But you can imagine the psychological effects to both the buying public and employees with bad news and then potential Hail Mary salvation. 

 

To the potential buyers of Pelikan products, this can only have negative effects overall regardless of the truth of the news. 

 

 

 

 

[Jerome Tarshis]

Pelikan is not a pure pen company, as bunnspecial asserted above. It is a major manufacturer of art supplies and school supplies. Its core business is inks and dyes, not pens. It was a major company in Germany long before it began to manufacture pens, in 1929.

 

Part of the trouble Pelikan got into during the early 1980s was precisely caused by the company's having aggressively acquired other businesses, of which I think the latest was Dymo labeling machines. Although not many are actively aware of it today, the early 1980s witnessed a serious worldwide economic downturn. Many companies, not just pen manufacturers, had a hard time.

 

Although I join everyone else in hoping Pelikan finds a good way forward, the mere popularity of its fountain pens isn't going to keep the company healthy alone.

[Mysterious Mose]

Also, https://www-theedgemarkets-com.translate.goog/article/pelikan-share-trade-halted-between-9am-and-10am-announces-proposed-disposal-german-logistics?_x_tr_sl=zh-CN&_x_tr_tl=en&_x_tr_hl=fr&_x_tr_pto=ajax,sc,elem

 

What goes on at a logistics center?  What about the rest of the Pelikan company?

[sgphototn]

12 minutes ago, Mysterious Mose said:

Also, https://www-theedgemarkets-com.translate.goog/article/pelikan-share-trade-halted-between-9am-and-10am-announces-proposed-disposal-german-logistics?_x_tr_sl=zh-CN&_x_tr_tl=en&_x_tr_hl=fr&_x_tr_pto=ajax,sc,elem

 

What goes on at a logistics center?  What about the rest of the Pelikan company?

Notice that part of the money goes to shareholders. Get them paid before the announcement that Pelikan has been sold or is liquidating. This is not unusual at all.

 

Nothing I've read about this bodes well for Pelikan, though I can be wrong.

[Karmachanic]

42 minutes ago, Mysterious Mose said:

What goes on at a logistics center? 

 

I'll take a wild guess and say logistics. 🤪

 

"Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items."

[Parker51]

Some Companies have eliminated parts of themselves which were not profitable to allow them to focus on areas of business thought of as core functions. 
 

In Pelikans case, a logistics center is likely not a core function. Their products are not unique from a logistics perspective with none requiring special handling, special environments nor special security, all factors which exist for some businesses such as food products, live plants & animals, pharmaceutical, electronic, military, scientific and very high end jewelry. Instead, literally Amazon or any other large distribution Company could under contract do it for Pelikan and likely at a reduced cost compared to the in house distribution center. All that is needed is an environmentally controlled logistics  center with reasonable security that operates efficiently .

 

The core functions of Pelikan are design, production, packaging and sales.

 

I am surprised Pelikan has had a logistics center, but then some organizations tend to have top down management and having an extra, but non core division can help justify one’s salary at the top, give one the illusion of greater power and give one a place to put competent but non creative people rather than terminate them. This however means that the captive logistics center remains mediocre as it does not attract or hold the best talent. They go to an organization not limited by the larger organizations sales, one that specializes in logistics and which grows in size and profit as it provides excellent lower cost services to a variety of customers.

[inkstainedruth]

18 hours ago, sgphototn said:

I've decided there's something worse than Pelikan going out of business.

That's Pelikan being bought out by Yafa.

I'm in total agreement with you there....

Ruth Morrisson aka inkstainedruth

[Parker51]

What I could see happening is for Montblanc to buy Pelikan’s fine writing instrument division and then eliminating all pens that feature gold nibs. 
 

This would eliminate a major competitor in a key product line area that is profitable. Production of 200s and below could continue to meet a niche for nice pens for daily use, a niche Montblanc has abandoned and which competitors such as Parker and Pilot have not abandoned.

[gyasko]

MB has positioned itself as a maker of luxury goods.  Steel nib pens don’t fit that image.  Stripey flattop pens or art supplies  really aren’t their thing either, so i don’t see MB buying Pelikan.

[sargetalon]

I’ll likely be writing about this soon but the logistics center that is the source of this one time revenue is part of what Pelikan acquired in 2010 when they acquired the Herlitz brand. So this sale is more to do with that subsidiary than anything related to Pelikan’s fine writing instruments.  Pelikan has not paid a dividend to shareholders in a long time so some of the proceeds will likely go to that. A large part will likely go towards paying down bank debt. Hopefully some will be earmarked for the Peine-Vöhrum plant and its workers.  

[gyasko]

I’m not buying anything Pelikan until they pay their workers.  

[IThinkIHaveAProblem]

I don't see how paying a dividend to share holders can be REMOTELY legal while employees remain owed money...

At that point, the employees are technically creditors, and they are first in line for $. Not dividends to share holders!

 

[BayesianPrior]

8 minutes ago, IThinkIHaveAProblem said:

I don't see how paying a dividend to share holders can be REMOTELY legal while employees remain owed money...

At that point, the employees are technically creditors, and they are first in line for $. Not dividends to share holders!

 

My understanding of German corporate law is rudimentary at best, which probably means I shouldn't even post my thoughts...

...but I would suspect a dividend payment would be legal (if not moral) as long as the company remained solvent (assets > liabilities) post payment, even if those assets were highly non-fungible.

[Calabria]

Sad. Ironically, pen prices, pen collecting, and Pelikan prices in particular are higher then ever before. 

[mke]

Perhaps, I should buy another of these little ink bottles from Pelikan - even if only my MB149 produces a nice writing with Pelikan RB.

http://mkepens.blogspot.com/2018/06/souvenirs-from-germany-i-recently.html

 

 

[james3paris]

Well, we will see what happens with the company. I hope they are able to restructure.  

 

Recently, I became a big fan of the Pelikan pens.  I bought a couple of m800s and I found them wonderful in my hand, exceptional.  And then,  I decided to try the m1000 in EF.   Off the charts,  I have never owned a pen which felt so perfect in my hand. I have never been a believer in the "grail" pen,  but I believe now. 

 

oh yes,  bye, bye, MB 149!

[max dog]

Maybe Lamy should acquire Pelikan.  It would be a good complement compared to MB acquiring them, giving Lamy a high end pen branch.  They should of course let Pelikan continue intact as it's own brand. 

[mke]

@max dog

> Maybe Lamy should acquire Pelikan. 

Interesting idea. 👍

[a m a r g o]

Sad news but not uncommon in these dire times for plenty of businesses. Hopefully they can solve their issues and Gott sei Dank  it's not the fine writing instruments branch!

 

It's specially moving because the brand has a long relationship with Mexico and specially my childhood, I've used their products throughout my entire life...

[sgphototn]

8 hours ago, a m a r g o said:

It's specially moving because the brand has a long relationship with Mexico and specially my childhood, I've used their products throughout my entire life...

I'm curious.  Can you describe the Pelikan relationship with Mexico? That would be interesting.