Info Aqualung Financial Troubles

[cerich]

I didn't say a heart attack.. LOL
Everything hinges on if AL can deliver the double digit growth forecast in Horizon 2027. They are the biggest brand in diving, that makes double digit growth more difficult. Look at their forecast for 2023 that says 30% growth and yet only having Q1 and 2 growth forecast of 7.5% in dive. Hmmm, well, let's see how that pans out.

Well, just gonna say, it didn't pan out.
The cash wood stove they have been burning seems to have burned ALL the cords of wood and most of the furniture and now looking at the wallpaper wondering how well it will burn.

 

[Bob Evans]

From our side of the fence, we are seeing a rough road ahead. I have used Aqualung equipment since the start of the 1960s. A leader in the industry. Really sad.

 

[iain/hsm]

From our side of the fence, we are seeing a rough road ahead. I have used Aqualung equipment since the start of the 1960s. A leader in the industry. Really sad.

Happy Christmas Bob.

On your side of the fence in the 1960's Aqualung didn't exist yet and neither did the Grateful Dead,

But back in your day you would have been diving using US Divers fins made by an American outfit with the catchy company name of: The Shamrock Rubber Company.

It wasn't until Air Liquide started promoting the La Spirotechnique folk into management that you got U.S. Divers buying fins made by Diverplast in Genoa from Guido Zoffoli and the lovely Beatrice.

To complete our 6 degrees of diving fin separation out of interest the moulding machines used by Diverplast were made by company back then called Sandretto whose chairman lived in the next village to me. I still go to the same cafe for breakfast next the church in Blockley Cotswolds where he lived and on a clear sunny day get to pass the other grateful dead lined up neatly next door.

As for a rough road ahead look on the bright side what could be worse. Iain

 

[Bob Evans]

Happy Christmas Bob.

On your side of the fence in the 1960's Aqualung didn't exist yet and neither did the Grateful Dead,

But back in your day you would have been diving using US Divers fins made by an American outfit with the catchy company name of: The Shamrock Rubber Company.

It wasn't until Air Liquide started promoting the La Spirotechnique folk into management that you got U.S. Divers buying fins made by Diverplast in Genoa from Guido Zoffoli and the lovely Beatrice.

To complete our 6 degrees of diving fin separation out of interest the moulding machines used by Diverplast were made by company back then called Sandretto whose chairman lived in the next village to me. I still go to the same cafe for breakfast next the church in Blockley Cotswolds where he lived and on a clear sunny day get to pass the other grateful dead lined up neatly next door.

As for a rough road ahead look on the bright side what could be worse. Iain

Thanks, you are right. I have a Doxa U.S. Diver watch from 1968. I am lost in time now and, hopefully, will remain here for a bit longer.

 

[Endler's]

Social media may very well hasten Aqualung's demise. 'Have seen posts on r/scuba and even YouTube comments, admonishing divers not to buy their product, 'cause of the company's uncertain future.

A self-fulfilling prophecy in the making!

 

[Eric Sedletzky]

So have we concluded in scubaboard expert land that Aqualung is indeed done and falling in slow motion about to make a thunderous rumble as it hits the ground?

 

[lowwall]

So have we concluded in scubaboard expert land that Aqualung is indeed done and falling in slow motion about to make a thunderous rumble as it hits the ground?

Remember that they are in this mess because they were not profitable enough to pay off their creditors. While the immediate pressure of making large debt payments is gone, I doubt the current owner is interested in running a company that produces a modest return at the best of times. Instead they'll be looking to quickly ameliorate their losses.

My guess is AL will be kept alive, but shrinking, while the more attractive bits (Apeks, PPS, ?) are sold off. Once those are gone, the remainder of AL will be sold for whatever they can get. Perhaps there's a buyer who will keep it relatively intact, but I think it's more likely that an existing player in the industry will pick it up for their dealer network and maybe the name. I won't even hazard a guess about how many of their products will survive the short term cuts and then the sale.

 

[iain/hsm]

Well, just gonna say, it didn't pan out.
The cash wood stove they have been burning seems to have burned ALL the cords of wood and most of the furniture and now looking at the wallpaper wondering how well it will burn.

Heck Cerich You nailed it. How did you knows soon? You should have said this three weeks ago.

 

[iain/hsm]

So have we concluded in scubaboard expert land that Aqualung is indeed done and falling in slow motion about to make a thunderous rumble as it hits the ground?

Eric.

To give you an idea of what's going on and just as a starter. Three weeks ago on the 7th December 2023 sitting on a desk in the London office of Gibson, Dunn & Crutcher an American multinational law firm headquartered in Los Angeles California and well known for its litigation practice, in particular its strength in appellate law on a desk in the plush office lay a bunch of papers with Aqualung written on them with some words added to sign.

The firm had represented Mark Zuckerberg in a $17 billion contract dispute with a purported seed money financier. It had also represented Apple against Epic Games in a lawsuit related to Apple's practices in the App Store and the removal of Fortnite from the App Store. It had also represented CNN in its lawsuit against the then President Trump and staff members on the basis of Jim Acosta's right to a "hard pass" clearance to enter the White House.

Pursuant to this a certain subscription agreement was made and signed on the day in question between Aqualung Corporate and Barings Global Private Loans. Also with Barings European Direct Lending and Barings Segregated Loans with a new money player added named as the Massachusetts Mutual Life Insurance Company all with Aqualung Corporate agreeing to issue non convertible bonds to the tune of €25,000,000 (Twenty Five Million Euro)

Further the guarantee agreement between Aqualung Corporate as issuer and Aqualung International and the original charger as guarantors all the folk in charge guaranteed the performance of all the obligations in the Guarantee agreement.

However as we haven't yet even started to scratch what's going on here in this forum. But a €25 Million loan is going to take some effort to pay back in plastic fins. rash vests and neoprene Hot Pants for technical divers. Granted some may disagree I guess. feel free. Albeit the strong are staying silent about Aqualung (unless provoked) but as for the scuba board forum members I think they have concluded already. Iain

 

[Eric Sedletzky]

The only thing I care about is the future of the Conshelf 14 and the 1085 second stage.
If there was a way to somehow extract that division out of the rest of the mess and preserve that entity as a stand alone enterprise would be great. From some of the intel I have gathered, and if I’m wrong someone please correct me, but from what I understand the current Conshelf 14/1085 all metal second stage are made in the US in LA at an undisclosed location where it has been for years. The plant only makes that combo for the military and commercial sector.
If they were to open that up to recreational buy I’ll bet they could successfully continue production and preserve those remaining jobs.
The rest of Aqualung I could card less about. I think they turned gimmicky and I didn’t care for most of their gear line.