As many of you know, I recently posted an article regarding San Juan Fiberglass Pools filing for bankruptcy. Kirk Sullivan, the owner of San Juan Pools was kind enough to respond to the blog and he stated the following:
"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."
I wanted to thank Kirk for taking the time write us and clarify his side of the story. I also wish San Juan the best in their efforts to resolve these financial issues. These tough economic times have put a strain on just about every pool and spa company in the world and will certainly be something we'll be keeping our eye