Letter From NAFA President

https://mailchi.mp/nafa/letter-from-nafas-president?e=143b650a1f

I noticed he used the phrase “right-sizing”. I heard that once before, when the company I worked for laid off almost 400 people. Just a sugar-coated way of saying that they aren’t turning enough profit to justify keeping the company operating on its current scale.

I give him credit for writing that update

Too little too late!!

Here it is:

"Dear Wild Fur Shipper;

On behalf of NAFA, including all of our collectors and agents who support you in your work to produce the largest and most diverse collection of wild fur in the world, I want to sincerely apologize for all of the drama that you have had to endure with us over the past few months.

We have faced almost insurmountable challenges as our banking partners of many years appear to have decided to get out of the fur business. Unfortunately, for NAFA and our customers, this came at a time when we needed them the most. However, through hard work and focussed dedication across the entire NAFA organization, we have been able to weather this assault on our business.

I am pleased to announce that, as of today, we have put the first important piece of new financing in place as part of our overall transition towards new financial partners, and gaining a more solid financial footing. With this new development, NAFA remains in a position to continue to be the strong, global, producer-owned auction house.

Over these many years, you have put your faith in us as your auction company to provide a valuable service to you as a marketing organization. While we are on the cusp of coming through this storm, there continues to be rough waters ahead. The entire industry is still facing an unprecedented market correction and no sector is immune, including the auction houses. However, it is our commitment to you that NAFA and its management team will continue to take every step necessary to address the new realities of the industry through the right-sizing of our business, without compromising our services to our loyal shippers.

I am not going to try to make bold and brash statements about the strength of our business or how the experience of these last few months has not impacted trust and confidence in NAFA. I will say however, that all of the actions taken by our bank were, in our view, unnecessary and unwarranted as NAFA was not in violation of any bank covenants. Still, we are where we are and there is no point in doing anything other than admitting the current reality of our situation.

All that we can promise you going forward is that everyone at NAFA is going to work diligently to regain your trust. In this regard, I want to reiterate our commitment to you, that we will out-work and out-perform the competition in every way possible in order to continue to earn your business.

We will be announcing more details of our plans for the 2019-2020 season in the coming days and weeks.

We look forward to going into our 350th year with you and, together, working towards better and brighter days for our trade.


Sincerely,


Doug Lawson
President & CEO
North American Fur Auctions"

Keith

He still did not say what they will do with the bounce checks alot have gotten . I glad I do not deal with them anymore .

If they haven't filed? Then you should be able to get yoir money one way or the other. Good luck getting anything back if they have filed? They have already written you off if they filed!

You don't file if you can pay. Right?

Get the answer to that question and you will know the answer to the bounced checks being compensated.

Some banks won't work with gun shop also. I can see this in the fur business.

I've been selling to NAFA for years. Last season a furrier made me a nice offer for all my red fox and I accepted. It sounds like I dodged a bullet.

Been a good while since they saw fur from here.

On a previous thread everyone was asking for some explanation from NAFA and now we have it. Not soon enough for some and I get that. But, a large business like this does not bounce a bunch of checks on purpose, so I'm sure it took some time internally to sort out exactly what happened. Then a letter of explanation or news release is not some guy pulling out his phone and pounding out an email. I'm sure it went through multiple levels of internal review before going out.
Yes, NAFA made a big mistake on this one.
If the bank really did pull out because of an anti-fur agenda NAFA did the right thing by down playing that. Why give them any additional publicity on a lame social justice issue.

That is not how it went down. It had nothing to do with the bank. They had the money from the sale of my fur. Why do you need financing when you just sold my stuff? If I deposit money in my bank I do not need financing to write you a check. The money should be there already unless I paid Peter and robbed Paul. This is not an apology. It attempts to lay blame on the bank. If you are in good standing with your bank and have deposited the proceeds from the sale why would you need financing. Pretty easy to figure out for this free trapper. LLL

Exactly. Running a business on borrowed money is a sure fire way to go bankrupt. Turns out that 100% of businesses that go bankrupt are run on credit. Weird how that works.

And there are very few companies that do not rely on credit in some way, shape or form to keep operating. Same can be said for individuals......how many of you paid cash up front for your house or you car/cars for example?

NAFA's income has changed drastically as ranch mink prices and volume has dropped. 10% of a $100 mink versus 10% of a $40 mink for example, multiplied by the millions of ranch mink is a huge hit to the bottom line. And subtract from that the decrease in the number of ranch mink produced. Huge negative cash flow impact! Changes have to be made and some of those are painful. It remains to be seen how successful they will be making the needed changes.

trapper-"boy that aint much"

furbuyer"send it to NAFA then."

the shot heard round the country--this will impact almost everyone eventually.

The apology was for drama endured with us, not drama caused by us which sounds like a non-apology to me.
Also, the letter blames their problem on an "assault" by the bank, not their own fault.
Who are the new"'global producer owners/partners"? The Chinese? If so then they'd be selling themselves their own fur?

[url=http://https://www.reuters.com/article/us-climate-change-un-banks/banks-worth-47-trillion-adopt-new-u-n-backed-climate-principles-idUSKBN1W70QO][/url]
That's what's going on in the international banking industry at the same time this article just mentions fossil fuels and environmentally sensitive Industries but in other places I have seen where they agreed to divest from Big Agriculture and the meat industry I can see how the fur industry can get lumped into with that

If you wrote your mortgage company a bad check would they be fine when you told them it was the banks fault? Would the sheriff take that excuse when they bounced you out?

People making excuses will not help them. I am in the trapping business and I am trapping this next season. I am working with a coon that was worth 35.00 averages six years ago that was worth 14.00 this last season. They had the money from the proceeds of the sale of my fur. What happened to that money? No one curious? I am. LLL

Having talked to Stoughton they're position is they are blaming the bank. They said they will make the check good plus fees, that is the first step.

Does anybody remember not long ago the sale of the century ($12 rats, $50 coon averages, CRAZY prices)? NAFA raked in million and millions hitting sellers and buyers and all those handling fees and etc etc... Granted there is expense, they did cater in 3 pallets of lobster and free alcohol but the money flowing was obscene $3000 a skin ranch mink hammered by the millions some of them and averages of astronomical proportions... Where did all that money go? Was it squandered? Did the uppy ups have a great big BONUS PARTY! I got some commission rebate but wasn't much like 1.5% Anyways if the company has been around for 350 yrs I'd have thought they'd have their car loan paid off, right? And why do they need a loan for furs that aren't even theirs? I used to consign some things at a retailer he paid nothing up front and when he sold he was supposed to take 30% and give me the rest, simple right? Oh no, I go to his shop I see about $700 merchandise is missing ie sold, right. I say hey Carl ( not his name) can you give me my money the 70% He said for me to come back in a few weeks, whaaaat? Then I finally get paid and he still wants my stuff, I say Carl last time you held my money and made me dilly around. So this time you pay me 70% up front, OK? So he orders all these things. I diligently get the order manufactured. I take the stuff to his shop... Oh but I can only pay for half that up front. Carl YOU'RE DONE!!! I don't do business like that. I feel if I was to ever consign fur thru NAFA because when things are HOT that's the place to sell furs. I'd require some sort of surety bond held in a US bank. Something to the tune of 150% estimated value and when they do sell they get their money after I get mine... Because ultimately they are a tool to me just like I'm $ signs to them. But remember NAFA is nothing w/ out it's shippers. And Carl's business is no more... But I'm still trapping and hunting fur

If that's the case then you better start changing your shorts. That puts one single country in a position to dictate exactly what they want. They will be the only winners

Just by luck I probably dodged a bullet last season, I didn't have my fur ready for the NAFA pick up. I sold through two other auctions and have been paid for everything except one XL B belly Bobcat. Then I turned around this fall and bought over a thousand dollars in traps and supplies that will be delivered to me in a few day's. I'm not feeling all that wise after reading all of this sad news about a major player in the fur business.

As usual LLL has all the answers, he was there.

Heres how an auction works, at least the ones Ive dealt with for fur and other goods.
You give them your stuff.
They sell it for a percentage.
They get paid.
They pay you minus their cut.
How do you screw that up?

TP thank you for your continued support. How much was your bounced check for so I know how much weight I should put into your comments. LLL

EXACTLY.. you don't, unless you want to slit your own throat, which doesn't make sense. Simple solution since they're borrowing money to cover money they already have??? Does that make sense? Anyways there is this thing called a SURETY BOND, they get paid, I get paid, they default I get paid more... Factor that into your creative finance! Also the bond will be held in a solvent US bank not some Caribean institution. NUF SAID.

Seems like everyone has the own opinion on this and why nafa is in this situation. They over spent, there going broke, they made bad loans to the ranch fur guys. Why do they need a bank to help them financially, they are an auction house they get their money before they write checks, how did they bounce checks.

No one has mentioned that maybe one of the big buyers bounced there check to them, hence putting nafa in this position. If that is the case, nafa should of come out a lot sooner and said there may be issues with checks this go around. I’m sure some of the buyers had bills in the millions, maybe the buyers banks cut them off leaving nafa with the only choice to go to there bank for assistance. I would think these buyers have a credit line approved with nafa, and I imagine those credit lines are allowed to be spent over also. Im sure we will never hear the 100% truth of the situation.

That's their problem if someone bounces THEIR check- that's why we pay such high fees. They owe me, the guy that owes them doesn't owe me. Around here, the checks all go into escrow and are issued once cleared. I don't like it, I have to wait long periods of time to get my check, but I know its good.

Any time.

Have the NAFA route dates been established yet. Gonna start working my spring beaver pelts so they are ready.

Is there a way to tell if your check is good or not? I'd rather not run it through and have it bounce with bank fees etc.

Be nice to know if their sending new checks to all or if you have to file a claim for bad check first.

Would love to see a letter from the president that had some actual useful information.

Not saying they are squeaky clean and have not made mistakes. But as you also stated, your coon has gone from $35 to $14 and their charge for selling said coon has gone down as well.

My point is that their revenue stream or cash flow has been severely impacted and I suspect that their expenses have not been cut by the same percentage. They still have facilities, employees and fixed expenses to pay. They have done some down sizing but probably not nearly enough or quickly enough. Mistakes when business is good are easier to recover from than mistakes when the business is down sizing.

Must have missed that sale. Granted, prices were at historical highs. Now at historical (at least to recent memory) lows. There was however a lot of revenue generated some of which went to help recover from the last downturn, same as the farmers. Their bank wanted out of the fur business. Too up and down and no "up" visible in the foreseeable future. The fur markets are fragile and have been for a long time. That comes from limited demand and/or unique markets but not general market demand. The fashion styles did not change on October 19, 1987. Dominion/Soudack, OTc, AmeriMink, NYC broker trade, and more all gone including the actual HBC that NAFA claims for their heritage. Yes, I realize some people weren't around to see that but it had become a speculators market. It has been almost 100 years since there was an actual demand-driven, long term, general high market for wild fur (as opposed to a supply-side, try to create a market approach). The markets are so limited and/or fragile that the militia of trappers goes gung-ho over an increase and over supplies or the limited market dries up and disappears after only one or two seasons. Ranchers do the same with the farmed stuff. Selling a few coon tails at a crafts fair and then bragging about the 4 they sold for $20 avg. (and not counting the 100 still in the box) is not a fur market. And none of this makes it OK to mail rubber checks. Someone DEFINITELY dropped the ball there; at best an accounting snafu. I think most people would have been happier with a few-week delay and an explanation.

I'm rambling. Hope Trump survives the coup attempt.

Trapset, take your check to bank and ask them to verify the funds before you give the check to them to cash. I go in my bank with a check ask them to verify funds, they call that bank. If the funds are there they cash it if the funds are not there I take the check back. Make calls to who wrote the check and try again after a week, since normally people are paid weekly that I deal with.

Yes, the routing number.

Nafa started making panic poor busness decissions in 2014 apparently the bank finally reconized a problem before some trappers did

What are you calling recent memory? I've been at this game for only twenty years and prices of most articles that we have in Ohio are still slightly better than at the turn of the century. Red fox and and beaver would be the main exceptions

Maybe LLL can give instructions on how it actually went down.

wish 20 years back was all i could remember,make things easier a little anyways.

Thanks jarrett and Les. I may do that.

I was just wondering if NAFA listed the bad acc # vs the good one somewhere so you could tell without going to the bank.

[/quote]


Maybe LLL can give instructions on how it actually went down.[/quote]

You are the financial guru. Let’s here your spin. Like it says I give TRAPPING instruction not financial advice. This is all free here. The other costs you. LLL

I will continue to send fur to their auctions. We have a new route person this season as the Clarks have retired. We fly all over the world on airlines, many of whom have filed for bankruptcy multiple times and now it looks like several of the pharmacy companies will file for protection as well and we will still use their pills, so I don't have a problem sending up a some fur. The stock market crash and melt down of 2008 and 09 in reality with lost time etc. cost me more than a couple decades worth of fur so I don't get too alarmed from my perspective.

Bryce

UN BANKING DEAL

There will be more shortly relative to the re-issuance of cheques, payment of NSF charges, and the timeline.

This is still a work in progress with the financial institutions involved. Everything is in progress and there is a timeline for completion. if you have uncashed cheques just hold onto them to avoid NSF charges and you will be instructed soon.

That's what I was looking for. Thanks Ron.

SALE of the century Feb 2013 check the NAFA site historicals

Anyone tried calling the bank the checks were written on? I don't think it exists anymore.

You missed a few steps
They pick up your stuff on a route
Haul it to Wisconsin
Sort and tag
pack and ship to Canada
Sort grade and bundle into lots
Scan codes
update acounts
prep for auction
Hold auction
Every step costs money before they get paid.
It costs just as much to handle a $5 coon as it does a $50 coon.
That's how you screw that up.

It is pretty pathetic that the costs related to handling most skins exceeds the income they generate through the auction process.

Supply glut has reduced this industry to dirt. Cheap coats will ruin us.

It will be interesting to see how these developments will effect the only bright spots left coyotes/ cats. The goods that still have something to lose.

Sounds like the Bank waited on the auction revenue to come in and took the funds to cover or at least cut a debt owed them .

"Every step costs money before they get paid.
It costs just as much to handle a $5 coon as it does a $50 coon."

Same goes for every trapper out there now. I know the high cost to operate and income generated is next to nil for me- I didn't stiff anyone along the way or after the fact.( yes I know Im on a much smaller scale)
They boast of 350 yrs experience?

If they cant cover those expenses in this market which isn't soon to recover then I would say they are done. They say they are going to get everything straightened out and keep rolling-me, I doubt it but lets hope so.

Nimzy quote is perfect. That is the problem right there. The current fur prices along side with the processing and setup fees. I am not a fan of NAFA. But I am no fan of any auction house. That is my opinion. But I do know when fur was high NAFA did share that profit thru out the community. Fur Community. Unfortunately for all of us. Wild fur has been and will continue to die a slow agonizing death. Not because no one likes to wear fur. It is due to the cost and risk of wildfur vs Ranch fur. Fur is a business. You have to be profitable to survive and to be able to thrive. You can only continue so long at a loss. That is fact. I hope they can find a way to be profitable and have an option for sellers and buyers. The opportunities are slowly disappearing for all of us in the wild fur industry

My larger long term concern is that it appears that even with record low prices there is not a huge bump in retail sales which to me indicates a general decline in wearing and marketing wild fur and ranch fur. If we only need 30 million ranch mink to fill a market that is a huge drop from the 50 million a decade ago, ditto rats, coon etc. If you can't give a small coon away it indicates to me the future value is not there.

If I were a young trapper,l say in my 20s I would seriously consider getting geared up to do a lot of ADC work and business as I don't see a need for many wild furs in the near term future. Animals like coons, grinners, skunks, beaver typically live in habitat where millions of people live and there will always be issues.

Bryce

To be fair to marketing fur and taking profits. Fur harvesters have to share a bit of the blame for over harvesting, because they never learn how to watch the economies of the country's using the harvest.

They just are watching prices and when they are high one season, most expect this to carry over to the next and most will try to harvest as much as possible flooding the holders, and dropping prices because of supply, never regarding need or size for the market, it's strictly a dollar deal for many.

I doubt anything will over come this now day's due to the drop in use of fur, unless something happens drastically to change thought and or need of fur, it's mostly going to be left to history, and minor usage in trim, and nitch craft markets.

You are seeing in reality what history has shown on records in the past of auction companies failing to get past a few years of low sales !

From what i saw. Trappers reduced production considerably years ago reflecting the new market situation. NAFA and the mink ranchers drove the price of our products down by not contracting in a timely fashion.

What is kinda interesting is that so many types of wild fur are effected by the ranch mink market. Basically coyotes are immune for now. I thought something like sable would be on their own market yet ranch mink controls that market too.

I pretty much agree with you. Demographics are changing and not in our favor. Those individuals and groups that are looking to decrease what we can do regarding outdoor activities and put further rules in place aren't going to be wearing much fur. Its not a matter of if but when and how will our rights to trap be reduced in the future.

Some young enterprising fellow on here should be looking beyond just ADC work but the potential for a nation wide business model. If we think there are a lot of critters in city and suburbs now just wait until there is even less pressure on them and a generation removed from trappers will create a real market for those skills. I suspect there will be an era where individual run ADC business thrives but I bet that will be short lived. I'd suspect the rules and regs to play ADC game will get rather complex and you'll see large enterprises emerge.

A buyer can get a big ranch mink for 30 dollars, he is not going pay 100 dollars for a half the size marten very long.

So rumor is that nafa owed a debt to bank, they got some there money back or all back from nafa an closed acct with nafa? Or sometbing else ? There is chapter 13 bankruptcy that is more busissnes bankruptcy, unlike a chapter 7 , I am not familar with how chapter 13 bankruptcy works

Lots of rumors floating around. Probably best to not believe any of them 100%.

NAFA is a Canadian Company. Bankruptcy laws are most likely different.

Odd, buyers are paying 50 dollars for marten that are half the size of a ranch mink currently.

Never read the whole post so sorry if this has been asked,,, How much you suppose NAFA will make on guys who don't screw with getting a low dollar check reissued? $10-20 ea. could add up pretty fast.

Believe it or not there are trappers who are not on trapperman to see these posts. Are they sending letters to EVERYONE who was issued a bad check?

The thing is Lumberjack the auction house charges a per pelt fee and a handling fee (which have both risen dramatically) to the buyer on top of your commission and the buyer commission... It seems like a pretty sweet deal for them, you just have to be able to ratchet up and down to match the demand w/ your overhead... These guys aren't wizards but you also can't be on vacation when your house is on fire.

Why is it a bank can charge 20.00-50.00 for a returned check but when I get one its "Oh well, sorry bout your luck"?

The bank didnt quit nafa when times were good

Yes letters are going out to all the shippers from this sale. We do have to answer questions on the forums and Facebook pages. Yes it will be costly to reimburse all of the NSF charges and NAFA respects and accepts that.

I don't think there's any conspiracy to pull a fast one on those who received bad checks, or that NAFA is being openly dishonest here. There’s no reason for that. We're just not getting the full story, which is par for the course these days within the corporate world.

The timing of these things and the vague language used are all carefully orchestrated, more or less. That doesn't make it a conspiracy, but it does mean that some questions will go unanswered.

Besides they're not obligated to reveal anything to us, publicly or privately. They'll do what they think is needed to manage the crisis without risking stakeholders and their support. Where trappers fall along that stakeholder continuum dictates the kind of response/detail provided.

NAFA's “Bank” sent them a clear message, reiterating their (NAFA’s) place along the Bank's financial continuum....

So where do we as trappers stand now?

This check bouncing fiasco has hurt many trappers' confidence in NAFA. The rumours of NAFA going through bankruptcy, company reorganization and downsizing has also hurt many trappers' confidence in NAFA. I strongly suspect that many fewer trappers will ship to NAFA this trapping season and for valid reasons.

In the US, Groenwald will likely have many more trappers trying to sell to them. I hope Groenwald can handle the extra sales and still pay adequate prices.

I hope that NAFA is able to weather this tough year and to come out stronger.

We need more outlets for wild fur. We need the demand for wild fur to go up, or fur trapping will continue to become more of a hobby, than a reliable source of income.

I believe the entire fur garment industry needs to take a more modern approach to advertising. The industry should seek to gain the support and sponship of social influencers and to have constant exposure of fur garments on the popular social media sites. The fur garment industry to needs to change their marketing strategy for the times and stop the anti fur movement from gaining support or they will become just an odd footnote in history.

Keith

These letters, well the first one is at any rate as I haven't checked lately, is on your NAFA account page.

Agree completely.

I see this as an opportunity. NAFA needs us and we need NAFA. It seems to me that our mutual self-interests can be more collaborative and less confrontational if we all acknowledge each other's interests, and work toward common ground that respects a more equal partnership in the decision making going forward.

Thoughts?

From where I sit we as trappers have been getting the shaft for quite a while and dont start with market fluctuations blah blah blah... nafa or should we call them by the name they originally used The Hudson Bay Company have been in the business of giving us the trappers the shaft for the last century. Dont start with the poor them stuff they've kept us under there thumb for century I dont see any of us getting rich but they keep making their money. Maybe now people will once again see they need us...sorry not ment to be a rant. But till it sorts out I'll continue to sell to the top dollar and if I dont like it I guess I'll learn to do something constructive with all my fur I'm thinking beaver pelt underwear.... who wants to be my first customer.

This is just a harbinger of things to come.Countries are about set to go the same route as NAFA shortly.

HAHA! NAFA starts bobbing for apples, and there goes the.free world!
Other options, folks. NAFA will either survive, or not. We have nothing to say about it