NAFA Bankrupt?

Just heard NAFA is going bankrupt, anyone have details?

Nope, did not hear that. It sure can't be from overpaying trappers for their fur.

Zim

Jim Gibb will know.

From who did you hear?

I think this started on the stateupnorth outdoors forum.

Some guys were talking about it at the Michigan convention I heard

Likely just rumours or wishful thinking from the competition.

You're not the only one to hear it Bullox. Time will tell.

Anyone know how bankruptcy works in Canada?

Lots of rumors going around about NAFA. None of which are 100% true.

NAFA is going through a trying period financially. Has mostly to do with production loans to mink ranchers and the low prices for ranch mink the past few years. NAFA has the situation under control and are working out a few small issues.

It is business as usual with the upcoming sale. Shippers are getting paid when their goods sell. Buyers with fully paid for goods are getting their goods shipped.

And it will be business as usual next season as well. You will most likely see some minor adjustments. Fewer cash advances on consigned goods. Fewer pickup routes. They have already reduced their ranch mink staff.

I'm sure that if Gibb sees this thread, he will confirm what I've written.

Rumors are terrible and they only get worse the more they are spread around.

Thanks Nancy ! Just an observation......it seems almost counter-intuitive to loan money to produce greater supply of something that is declining in value overall.

I think they call that "quantitative easing"

I've had several people message me and ask me the same thing today

I don't believe it. There sale is in 8 days, what are consinged goods? Fewer cash advances on them? I am thinking unless prices change lot that coon advances for around this area as well everthing else well be same, my advances are long pay for, I don't have that much left, rats didn't sell well in June, coon did, lot mink left, except larger no. 1s are sold, select an no. 1 female are left as well lower grades. Unprime mink, last season for xxl coon an up, $5-$6 advance, beaver an mink$5, male an female both on mink, rats were $1.50 advance, I don't think they go bankrupt, hardly noone would ship to them again if lost all fur money on goods there in bankruptcy, I know that I wouldn't

I better not. Good luck Coonman.

Anymore, there are better outlets in the country for good finished coon than waiting 2-3 years at NAFA to sell with no commission charged . Different story on a hot market.

Internet rumors of a business going bankrupt are irresponsible. I think it has no place on a public forum

If they have the Equivalent to a Chapter 11 in Canada then they could be doing it … which means they will be able to get out from under some debt or pay pennies on the dollar. They would be forced to reorganize with the possibility of a court appointed administrator. Happens every day and that is how some of these big corps. keep coming back and getting bigger and richer.

Garry-

Does Nafa own anything?

What would that mean to wild fur shippers that have goods there now? Where I worked for years. The corporation went bankrupt. An was told for months that would reopen an be back, it closed forever an never be again, our plant was most profitable of them, out 15 plus plants, I have no idea what happen an talk some other employees that know nothing more than I do except rumors, we were layoff with not have to make work search contacts an told they were going bankrupt on phone, I heard the bankruptcy was a corporate thing an that all I know it

Tell them toget chase credit cards to pay off their debt. I heard the other day chase is forgiving all credit card debt in Canada.

Various buildings in various countries. Canada, US, Poland, Netherlands. Plus computer equipment and pelt processing equipment (tagging guns, stringing machines, fur balers. Basically anything and everything you need to run an international fur auction.

......they do if nafa cash advances are more than what they sell the pelt for.

If there is a court appointed administrator, they would basically be running the show. Still has to answer to the court in most cases. They could suggest (as a stupid example) that NAFA not buy any more coons because they have been losing money on them. They would then have to show the court evidence to prove it and the court might go along with it and so it would done. In filing a bankruptcy they have list all of their asset and all of their liabilities.


Garry-

For Canada:

Division I Proposal or a CCAA filing

The equivalent of a Chapter 11 bankruptcy in Canada would be either a Division I Proposal or a CCAA filing. A Division I Proposal can be filed by either a company or an individual and a CCAA filing can only be filed by a corporation with a very large amount of debt.
These two options are meant to provide both individuals and businesses with the opportunity to settle a portion of their debt. These options also provide protection from creditors while a company or individual works to regain their financial stability.


Consumer Proposal (aka Division II proposal)

A consumer proposal is the equivalent in Canada to the American Chapter 13 bankruptcy. A consumer proposal is a formal and legal debt settlement arrangement between a creditor and an indebted consumer. The agreement allows the consumer to consolidate their debt and reduce the amount they owe and then repay it over a period of time no longer than 5 years.


Garry-

I Heard NAFA over-spent giving away *FREE* Fur handling DVD's !!

w

So I ship 1000 co on and they are valued at 20$ each. The advance me 50 percent or $10,000. They sell them for $6 each so I owe Nafa $4,000. Is that correct?

That plus interest

An advance is simply a loan

It was reported at Coyote Days that NAFA donated a really good chunk of change to the effort to stop the fur ban in California. It's possible that an organization that is going broke would give that much but I'd think the creditors would really frown upon it

And if I'm not mistaken the interest starts on the day of the advance. I hear the interest is almost usurious as well

I imagine that the fur market has a lot further to crash and NAFA is going to eventually have to scale back and decline offering/taking certain goods at some point as the labor will be worth more than the commission on the sale. The market is going to have to crash hard enough and for long enough to the point that fur handling and trappers succumb to the dying art until there is so few left that whoever is left is supplying to a limited supply and a niche market that looks upon what is being offered with nostalgia and it becomes valuable again. Like some traditional native american art and old fashioned homemade products. Hopefully I'm wrong.

Dear NAFA Customer,
At NAFA, we are aware of the many rumours in the trade about the present condition of our business. Many stories going around the industry are without merit but we will also not pretend that we are currently operating in a totally “business as usual” environment during these challenging market conditions.
What you should understand, however, is that NAFA is indeed open for business and actively preparing for our August Auction (Sale 23-27, on Show from 19). To date, we have solid attendance for our end of season sale (similar to July 2018) where we will offer over 2.5 million regular, Section III and breeder mink as well as a strong collection of wild fur.
In spite of these difficult business and market circumstances, NAFA’s sole focus, over these past weeks, has been on meeting our consignor production assistance commitments for 2020, fixing the issues that are currently impacting us and ensuring that we can continue to honour our commitments to our valued customers.
I want to assure you, and everyone else in the industry that you might talk to, that NAFA’s August Auction will be conducted under fundamentally the same manner as every other auction that NAFA has hosted in recent times. We will offer our same high levels of customer service. The auction itself will be managed as you would expect and our selling terms will remain highly competitive.
Nevertheless, we do understand that there is some nervousness out in the market about paying for goods bought at the August auction and not receiving them. First, I would say that shipments from our previous auctions have continued throughout the summer on a totally business as usual basis. Many buyers can attest to this. Second, as listed in NAFA’s Conditions of Sale (Articles 4 & 6), and under Canadian Law, any and all purchases made in the auction room or by Private Treaty and fully paid for, become the property of the Purchaser and will be shipped as directed. In other words, once a purchase is fully paid for, title and ownership of those goods completely passes to the Purchaser and NO ONE, including NAFA’s bank, will dispute this. In fact, NAFA’s bank has gone out of its way to stress this principle and would happily offer to reassure anyone who questions this truth. Finally, NAFA has also developed a plan to ensure that broker commissions due from past sales, or going forward, can be dealt with during the course of the August auction.
Still, if none of these Company assurances can satisfy your customer, NAFA is willing to work with our customers to ensure that goods bought in the sale can be paid for and shipped in a fully secure manner.
In short, it remains NAFA’s solemn promise to work with all sectors of the fur trade to get through this difficult time and continue to play an important role in the fur industry in the years to come.
Thank you for your business and understanding. We look forward to seeing you in a few days time.
Douglas Lawson
President & CEO

No No No It was the pins for your hats!

Thats why you didn't get one, so they could just squeak by.

You Americans seem only to support Canadian companys when you are benefitting.

True we are no different than anybody else

I fully support NAFA. Our coon have been running up between $20 and $25 average right along. In May of 2013 I averaged $41,67 on my coon. I did pay a comission and $10 for the magazine, but I felt I was ahead and hoped NAFA was too. I am sure everyone else did the same or better elsewhere. The better coyote have been over $100 for 10 years. For two years we have had a trappers auction that runs close to NAFA prices. But, before that, nothing was close. Everyone has to make money in the fur business for it to work. If NAFA makes a bunch of money so have trappers. If NAFA doesn't make money, trappers take it worse.

Yep

Boco NAFA is not really a Canadian company. More international. Most ownership resides in the U.S. The real money that NAFA was making the last few years was coming out of Stoughton and Poland. They pretty much been riding that ranch mink horse the last 3 or 4 years and finally rode that horse till it died. Now what are they going to ride?

Lots of folks think profits are accumulations of cash. More often profits are just increases in assets such as new equipment or facilities. Profit is not a measure of available cash.

......boco just get in the life raft, the mother ship is sinking! and taking C+T with her. lol

I propose the creation of the Trapperman Fur Union to promote and develop the use of, North American wild caught furs. We are already a strong community of fur trappers.

Keith

Just join Austin Passamonty's and Walleyeds united trappers organization.

Kind of like you Canadians grudgingly supporting the United States Military

only because it protects your toy country.

w

Who exactly are the Americans protecting Canada from?LOL.
Never heard of anyone think of invading Canada except the Americans in 1812,and you know how that turned out for you,lol.You never tried to repeat that foolishness ever since.

Don't blame walleyed.

I wasn't involved in any ponzi schemes with any bamboozling grifter !!

w

America first, as it should be.

Why would anybody invade Canada eh?