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Author Topic:  Peavey auction
Dave Zirbel


From:
Sebastopol, CA USA
Post  Posted 29 Jul 2019 3:02 pm    
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https://www.cagp.com/events/inventory-assets-no-longer-needed-for-on-going-operations-of-peavey-electronics/

Sorry if this is old news and/or posted in the wrong place🤪
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Andy Jones


From:
Mississippi
Post  Posted 30 Jul 2019 6:42 pm    
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Probably true.Today local news reported that 30 employees are being laid off and all manufacturing in the plant in Meridian,MS will cease shortly.This is sad.Peavey was once one of the largest employers in Meridian.

Maybe Mike Brown will post some news about this.
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Bill Ferguson


From:
Milton, FL USA
Post  Posted 31 Jul 2019 8:18 am    
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Sadly, Mike was one of the 30 laid off after 44 years. The worlds economy has changed.

It seems all anyone wants to buy is Cheap!

I'm having a hard time selling ANY quality products these days.

Loyalty to manufacturers, regardless of what they've done for us, is gone.


SAD

I am afraid IT WILL come back to haunt us or our kids
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Jack Hanson


From:
San Luis Valley, USA
Post  Posted 31 Jul 2019 1:21 pm    
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Did they shutter the service department to boot? If so, there will definitely be no Peavey amps (new or used) in my future.

So sorry to learn about Mike. He will always wear a white hat.
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Dan Kelly


From:
Boston, MA
Post  Posted 31 Jul 2019 2:05 pm    
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Really sorry to hear this. This post should almost be moved to the "Gone Home" section.

Although I never met him, Mike is a serious contributor to the Forum and, I hope, will continue to contribute.

Peavey has had a no nonsense history of supporting the PSG and Lap Steel community with products geared specifically to our needs.
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Lee Baucum


From:
McAllen, Texas (Extreme South) The Final Frontier
Post  Posted 31 Jul 2019 2:35 pm    
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It's the end of an era.
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Jim Cohen


From:
Philadelphia, PA
Post  Posted 31 Jul 2019 2:49 pm    
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On behalf of all of us, thank you Mike for all you have done for the steel guitar community for so many years.
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Randall Palmore

 

From:
Albany,TX USA 76430
Post  Posted 31 Jul 2019 6:24 pm     Peavey
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I have my great Vegas 400 and the reverb pan boxed and ready to ship to Peavey for service. Is the service department still accepting units for service? I hope so? .. all of my past Peavey amps have been outstanding! I have had this amp that I purchased used for 14 years..no issues!! Sorry to hear this news on a company of “top quality” and service. Thank you Mike Brown for all that you have done! Randall
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John De Maille


From:
On a Mountain in Upstate Halcottsville, N.Y.
Post  Posted 31 Jul 2019 10:33 pm    
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I can't believe what I'm reading! PV has been a stalwart supporter for steel guitarists for many years. I still have and use both my Nashville 400 and 1000. They're great amps.
And, Mike Brown..... thank you for your support and service to our world. You will be missed!
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Roger Crawford


From:
Griffin, GA USA
Post  Posted 1 Aug 2019 5:42 am    
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Mike Brown was the face and voice for Peavey for as long as I can remember. I sincerely appreciate having gotten to know him, and I wish him the best going forward.
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Bob Bestor


From:
Ashland, OR
Post  Posted 1 Aug 2019 7:48 am    
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https://guitar.com/news/peavey-to-auction-off-12-million-worth-of-unsold-guitars-amps-and-raw-materials/
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Lee Baucum


From:
McAllen, Texas (Extreme South) The Final Frontier
Post  Posted 1 Aug 2019 9:55 am    
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I hope there was a decent severance package and retirement plan for Mike, after 44 years of service.
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robert kramer

 

From:
Nashville TN
Post  Posted 1 Aug 2019 3:10 pm    
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The pedal steel guitar would not have been successful as it has been without the Peavey steel guitar amplifier.
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Donny Hinson

 

From:
Glen Burnie, Md. U.S.A.
Post  Posted 1 Aug 2019 5:08 pm    
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I'm disappointed this is the way we find out.
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Larry Dering


From:
Missouri, USA
Post  Posted 1 Aug 2019 5:47 pm    
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Man that's sad. I own a pile of Peavey amps.
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Richard Sinkler


From:
aka: Rusty Strings -- Missoula, Montana
Post  Posted 2 Aug 2019 5:02 am    
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robert kramer wrote:
The pedal steel guitar would not have been successful as it has been without the Peavey steel guitar amplifier.


I highly doubt that. We would just be using other amps.
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Jack Stoner


From:
Kansas City, MO
Post  Posted 2 Aug 2019 5:42 am    
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I don't want to get political as its against the forum rules, but wasn't all the import tariff's going to bring back US production?
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Donny Hinson

 

From:
Glen Burnie, Md. U.S.A.
Post  Posted 2 Aug 2019 6:17 am    
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Jack, it's a question of "Too little, too late". I did some research, and it seems that the handwriting was on the wall 5 years ago. Peavey, like a lot of other companies, was crippled by our country's free-trade policies, and excess regulations.

This is what Hartley Peavey had to say about the closing:

Quote:
By Terri Ferguson Smith, of The Meridian Star tsmith@themeridianstar.com Oct 5, 2014

Peavey Electronics' announcement of job cuts is simply a matter of survival, according to the company's owner. Hartley Peavey, a Meridian native who founded his company in 1965, took his company to international success and the Peavey name is widely associated with amplifiers and a large range of other musical equipment used throughout the music world.

Last week, Peavey announced that it was closing its A Street plant, and according to information from the Mississippi Department of Employment Security, 99 people will lose their jobs. At the time of the announcement, Peavey officials said it is part of a restructuring to remain more competitive. On Wednesday, Hartley Peavey said it was a necessary decision.

"If we are not competitive, we lose business to somebody else. That's what's happening to Meridian and that's what's happening to Peavey," he said. "We are going to do what we have to do to survive." The U.S. has become increasingly unfriendly to business, Peavey said. High corporate taxes — and locally, higher electricity rates and other growing expenses are making it more difficult to do business in the U.S., he said. His competitors know this, Peavey said.

"I have huge competitors that build absolutely nothing in the United States," Peavey said. "Some of the biggest names in the business don't build anything here."

Most of that industry has gone to China, he said.

"You can't keep increasing taxes and increasing medical care costs. You can't do that so long but then it starts to have an effect," Peavey said. "We've increased our prices to the point to where we can't increase them any more. In order to preserve the jobs for the people I have, which is a lot more than were laid off, we had to do this."

Peavey also said Mississippi isn't business friendly.

"Our government, state and federal, has made doing business ever more difficult in the United States and in Mississippi," Peavey said. Peavey said the carrier of the company's health insurance informed them within the last year that costs are going up 49 percent.

Another problem his company faces, he said, is finding skilled workers. "One of our ongoing problems always has been, going way, way back is we can't find trained people," Peavey said. "I've told a succession of people here that one of the problems we have here is we can't find skilled people."

There are about 150 people at the company's headquarters in north Meridian on Hartley Peavey Drive. There are between 50 and 60 employees at the distribution center in the Sonny Montgomery Industrial Park. There are between 70 and 80 people at the international service center on old Highway 80, he said.

Peavey said some of the people being laid off have been with his company for 40 years.

In 2010, the company received a $200,000 grant from the Mississippi Development Authority, which was awarded to help protect jobs threatened by overseas competition. Peavey said those funds were used to help pay for new air conditioners for Plant 3, where they had placed the recently acquired company Composite Acoustic that makes graphite fabric guitars. That plant is still in operation, he said.

"If the average person knew how much governmental intrusion we have, they would do backflips but people like me have to deal with it," Peavey said. "That's what's going on. Our country has become very business unfriendly."

Gov. Phil Bryant was in town on Friday to kick off his Mississippi Works tour. The focus of the tour is promoting the state's business friendly atmosphere, so The Meridian Star asked Bryant what he thought of Peavey's remarks that the state is unfriendly to business.

"It's remarkable to me that Hartley would say that. I think he's had great success in Mississippi and made a very good living," Bryant said. "He's done a good job of helping provide jobs in Mississippi."

Bryant said he first learned about the layoffs through the media and his administration has offered help to the company.

"I would hope that business people in Mississippi would be somewhat positive, particularly those that have been successful with business in Mississippi," Bryant said. "They work hard but there are also a lot of people who helped build Peavey Electronics. That includes the Mississippi workers and we are very proud of them as well."


[/b]
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Ben Elder

 

From:
La Crescenta, California, USA
Post  Posted 2 Aug 2019 8:02 am    
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This all comes as less of a surprise to anyone who saw the Peavey episode of "Undercover Boss".

From a friend of mine who was a long-time Peavey employee until a few years ago:

"Most aspects of the music biz are toast, as far as the old paradigms are concerned. When Hartley caved in to China around 98 to stay competitive it’s been downhill. I could make this a long story about everything from the changing of the civic guard in Meridian to stupid excesses and losses down to lack of oversight and hiding failure from management to the logo and Van Halen fiascos. The bottom line is the collapse of the instrument business. Kids want to play video games, instant gratification, they don’t want to woodshed and there aren’t enough geezers to support an industry. It’s not surprising. Most companies have been pulling technology off the shelf since the 80s. Compare Fender to Peavey. One or two buildings to 30. Plus, look at all the piles of sh** that was built because someone thought it was a good idea and sat. We finally took forklift pallets of sh** to the recycling crusher just to get rid of “good ideas.”

My friend further suggests that, for further color and gory details I talk to a store owner in my heartland hometown who worked for Peavey for many years. I will try to do that in a month or so.
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Barry Blackwood


Post  Posted 2 Aug 2019 8:47 am    
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Are we going to see prices skyrocket on eBay for "pre-Chinese" Peavey amps? Laughing
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Don Poland


From:
Hanover, PA.
Post  Posted 2 Aug 2019 9:12 am    
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Bill Ferguson wrote:
..............Loyalty to manufacturers, regardless of what they've done for us, is gone.............


Sadly, manufacturers(not just Peavey) loyalty to customers was long gone when they moved operations overseas years ago and starting importing foreign junk for that almighty $$$
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Ian Rae


From:
Redditch, England
Post  Posted 2 Aug 2019 9:31 am    
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I don't want to get Jack into trouble by drawing attention to his post, but I also thought that things were supposed to be more business-friendly now.
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Donny Hinson

 

From:
Glen Burnie, Md. U.S.A.
Post  Posted 2 Aug 2019 11:29 am    
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Ian, you can't fix decades of poor decisions overnight, or even in a few years. Offshoring has killed many U.S. manufacturing capabilities, and severely crippled the rest. Even once huge companies like Fender, Martin, and Gibson have all flirted with bankruptcy, or given in to offshoring and cheap foreign labor. The comments in Ben's post about kids just wanting to play games instead of musical instruments also has had a big effect. Even the symphony orchestras of many cities have fallen on hard times.
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Ian Rae


From:
Redditch, England
Post  Posted 2 Aug 2019 11:38 am    
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Donny, you're right of course. Everything we buy here seems to be Chinese too, and I used to teach music so I know how little perseverance modern youngsters have.
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Tom Campbell

 

From:
Houston, Texas, USA
Post  Posted 2 Aug 2019 12:30 pm    
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Click on this link to get a sample of what is being auctioned...it's heart-breaking!!!
https://www.cagp.com/events/inventory-assets-no-longer-needed-for-on-going-operations-of-peavey-electronics/?fbclid=IwAR2I4yDWBILcLdrQ_8wI5wX99LVsqJ9KCmMmGPH9Ca5dUYnoZ6wbtFevvCA
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