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Breaking News: San Juan Pools Files For Bankruptcy

Posted by Marcus Sheridan
  
  
  

As I've mentioned in previous posts, the fiberglass pool industry has experienced quite a down-turn due to the slow economy, and unfortunately, many fiberglass pool manufacturers have not been able to financially cope with this slow down. Too much debtSan Juan Pools of Florida is the latest manufacturer to hit a major financial wall, putting the future of their company in serious jeopardy. Although I've been well aware of San Juan's issues for quite some time, I did not want to release any information until the paperwork had been filed. Pool and Spa News, one of the industry's top magazines, recently stated:

The nation's largest fiberglass pool manufacturer has filed for Chapter 11 bankruptcy.

American Environmental Container Corp., a Lakeland, Fla.-based company that sells products under the San Juan Pools trade name pursuant to license agreements, submitted the filing in U.S. Bankruptcy Court in Tampa on Nov. 3, according to court documents.

With a network of some 500 dealers across all 50 states, as well as Canada and Europe, the firm has approximately 20- to 25 percent of the U.S. market for fiberglass pools, according to court documents.

AECC, which has three manufacturing plants in Florida, Arizona and Indiana, is owned by Kirk and Todd Sullivan.

Court documents indicate the company owed SunTrust Bank, with whom it's had a financial relationship for 16 years, approximately $5.8 million in secured loans

Although I feel bad that a fiberglass pool company with such a history may go out of business, I feel much worse for customers who own a San Juan Pool. San Juan literally has thousands and thousands of fiberglass pools in the ground, and if they go out of business these pool owners will have no recourse in terms of any warranty issues. ***Note: Kirk Sullivan, owner of San Juan, left a comment below regarding the state of San Juan***

Many of our readers across the country have emailed us lately regarding the stability of different manufacturers out there, and so as I mentioned previously, I will be writing a comprehensive article for those of you out there that will be purchasing a fiberglass pool in the future and want to make sure the manufacturer will be around for years to come. I've seen clear patterns with certain manufacturers and it's important to me that all of our readers are aware of what's happening around them.

Marcus Sheridan, http://www.poolschool.us/

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Comments

Response to Marcus Sheridan blog: 
 
Marcus, 
I could appreciate your concerns if the facts you heard were correct, but they are not. San Juan Pools and its division are just fine. What is broken is the banking industry when banks can call loans on very solid companies that have a ten-year unblemished credit rating, good cash flows, and assets that are three times the size of their loans. If we were in trouble, why have we not had any problem making payments to the bank to this day? Their decision was simply because they felt they wanted to back out of the residential housing market, not because of any unique concerns about us. What the story in Pool & Spa News failed to mention—and is perhaps the most important thing—is that we voluntarily took some of our divisions into Chapter 11, which is a very typical step to take that allows you to continue regular operations while we simply get other financing. Our operations are unchanged, our commitment to warrantees is unchanged, our good relationships with suppliers and partners are unchanged and our ability to make both bank payments and payments to suppliers is unchanged. Competitors will certainly try to make something out of nothing, but the evidence is that we will have as big of a display at the Las Vegas trade show as ever and look forward to seeing our customers, dealers and suppliers there. By the way, I'll be flying out there on bankrupt Delta and driving a rental car from bankrupt GM. I'm not worried.  
Posted @ Saturday, November 14, 2009 9:11 AM by Kirk Sullivan
If you have trouble reading this e-mail, go to the online version. 
 
 
November 13, 2009 
 
MAGAZINE 
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News alert 
Correction: San Juan Pools 
A report appearing in Pool & Spa News entitled "Top Fiberglass Manufacturer Declares Bankruptcy" contained information which was not accurate at the time of publication, and the publisher wishes to retract portions of the report. Specifically, Pool & Spa News reported that American Environmental Container Corporation was the parent company of Lakeland, Fla.-based San Juan Pools. This information is not true. American Environmental Container Corporation is a licensee of San Juan Pools, licensed to manufacture pools under the San Juan name.  
 
American Environmental Container Corporation has no subsidiaries. Pool & Spa News has no knowledge of any San Juan Pools entity filing for bankruptcy protection. The magazine also has no knowledge that San Juan Pools is in financial or economic distress or that San Juan Pools is in default under any obligation, including obligations to its customers. 
 
 
 
 
 
 
 
 
 
 
 
 
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Posted @ Saturday, November 14, 2009 12:23 PM by Kirk Sullivan
I would also be familiar with this:  
http://www.reuters.com/article/marketsNews/idCNN2254289320091022?rpc=44&pageNumber=2&virtualBrandChannel=0 
 
which details how desperate this bank is - they are fighting for their life. Note: "Nonperforming loans, or loans the bank believes are unlikely to be repaid, increased 65 percent from a year earlier to $5 billion". This report out of Charlotte was released about two weeks ago. San Juan was being pressured by usurious interest rates to move their loan portfolio, which is very difficult to do in this business climate. If San Juan had not acted as they did, their interest payments could have destroyed their capital reserves. Now they have the protection to find new financing without the pressure of Suntrust Bank.
Posted @ Saturday, November 14, 2009 12:34 PM by kirk sullivan
What is happening with American Environmental Container Corp? AKA San Juan. It is close to one year and I have heard nothing.
Posted @ Friday, August 20, 2010 11:41 AM by Robert
I haven't received any recent update from Kirk Sullivan Robert, but if I do I'll let you know.
Posted @ Monday, August 23, 2010 8:51 AM by Marcus Sheridan
Im sorry Kirk.For the companys 
misfortune.If my dad was still  
around.He would be shocked !!! 
Seeing him as the first license. 
In 1967.To have a factory to. manufacture pools for sanjuanpools. 
in texas.Tell your family hello.And god bless all of you. 
Posted @ Sunday, February 26, 2012 2:52 PM by Brent Blanton
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