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Joshua van Wyk

Cabelas lifetime warranty cancelled!

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5 hours ago, Fishing Rhino said:

What lawyer will handle such a penny ante suit?  There is a lot of work that goes into a class action suit.  A spat over a warrantee for a fishing pole isn't very glamorous.  It's not asbestos, or a pharmaceutical, or a Pinto gas tank, which can run into billions of dollars.  They might have a suit, "

 

A guy or gal who broke their fishing pole is not going to garner a lot of sympathy.  Can you see a lawyer parading hundreds of "victims" before a judge.  I can't.

 

"Entity purchase agreements (also known as "stock purchase agreements"). In this arrangement, the buyer purchases the business entity by buying a majority (or more) of its stock. The new owner generally steps into the shoes of the previous owners, assuming all debts and obligations."

I can see Johnny Morris writting the checks now, "pay to the order of Mr. RatherBfishing, one dollar and nine cents"

 

All I need is this Jerk Bait, and that's all I need....

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Most warranties contain some kind of verbiage that says they reserve the right to change the warranty at any time.  As far as "stock purchase agreements," is that how JM acquired Cabela's?  I thought it was a cash deal.

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On 11/27/2018 at 1:33 AM, Fishing Rhino said:

I don't know how they can legally change the warranty.  The buyer entered into an agreement with the seller when the purchase was completed.  The buyer fulfilled his obligation when he paid for the product.

 

Does anyone think that a car dealer could arbitrarily change the warranty terms after the vehicle is signed, sealed, and delivered?

 

It will be interesting to see how this story unfolds if and when a buyer stands up to them.  The problem is that the cost of a lawyer will likely be more the loss of a rod.  Now, if the seller were required to pay the lawyer's fee, Cabelas would be singing a different tune.

My wife's aunt had a pest control contract on her house with a warranty from a particular pest control company. That company would pay to fix termite damage while under their treatment. The company was bought out by Terminix and they continued to service the contract. The aunt died and my wife put the house up for sale. We found out there was termite damage and also discovered the warranty was void. Terminix basically billed her aunt the same money as before, but ended the warranty. They were only coming and treating. We asked the realtor if she thought we should pursue the matter and she said it was no use. Terminix had already gone to court to clear the way to do it.

 

I know this is not exactly the same thing, but when a company gets bought out, it's not the same company.

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23 minutes ago, J Francho said:

Most warranties contain some kind of verbiage that says they reserve the right to change the warranty at any time.  As far as "stock purchase agreements," is that how JM acquired Cabela's?  I thought it was a cash deal.

From the 2016 10-K: Pursuant to the Merger Agreement, at the effective time of the Merger, each share of Class A common stock (as defined in the Merger Agreement), par value $0.01 per share, of the Company issued and outstanding immediately prior to the Effective Time will be cancelled and automatically converted into the right to receive $65.50 in cash, without interest thereon.

 

So BPS acquired the stock of Cabela's, Inc. through a wholly owned subsidiary (Prairie Merger Sub, Inc.) by paying cash, and then merged them. So all the assets and liabilities of Cabela's would be in Prairie Merger Sub, Inc. due to the stock acquisition.

 

BPS is a privately owned LLC, and the operating assets are probably sheltered in another subsidiary, let's call it BPS Stores, Inc. (not sure because it is private and doesn't have to report public financials). Most likely, the merger sub distributed the assets (fishing equipment, brick and mortar stores, etc) of Cabela's to BPS Stores, Inc., but not the liabilities (warranties, etc).

 

So if you bring a lawsuit, it would be against Praire Merger Sub, Inc., which has little or no assets; BPS Stores, Inc. has no obligation to honor the warranties.

 

Just a guess though.

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8 minutes ago, Junger said:

From the 2016 10-K: Pursuant to the Merger Agreement, at the effective time of the Merger, each share of Class A common stock (as defined in the Merger Agreement), par value $0.01 per share, of the Company issued and outstanding immediately prior to the Effective Time will be cancelled and automatically converted into the right to receive $65.50 in cash, without interest thereon.

 

So BPS acquired the stock of Cabela's, Inc. through a wholly owned subsidiary (Prairie Merger Sub, Inc.) by paying cash, and then merged them. So all the assets and liabilities of Cabela's would be in Prairie Merger Sub, Inc. due to the stock acquisition.

 

BPS is a privately owned LLC, and the operating assets are probably sheltered in another subsidiary, let's call it BPS Stores, Inc. (not sure because it is private and doesn't have to report public financials). Most likely, the merger sub distributed the assets (fishing equipment, brick and mortar stores, etc) of Cabela's to BPS Stores, Inc., but not the liabilities (warranties, etc).

 

So if you bring a lawsuit, it would be against Praire Merger Sub, Inc., which has little or no assets; BPS Stores, Inc. has no obligation to honor the warranties.

 

Just a guess though.

After reading this I am SO educated beyond my intelligence. 🤪

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1 minute ago, Big Rick said:

After reading this I am SO educated beyond my intelligence. 🤪

Nah, if Johnny Morris understood this, so can anyone. :D

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1 minute ago, Junger said:

Nah, if Johnny Morris understood this, so can anyone. :D

Well, he's either way more intelligent than it seems or early in his business life he surrounded himself with intelligent people because it seems everything he touches turns to gold. Dude is very successful. Then again, maybe he's so intelligent he surrounded himself with more intelligent people...🤔

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5 minutes ago, Big Rick said:

Well, he's either way more intelligent than it seems or early in his business life he surrounded himself with intelligent people because it seems everything he touches turns to gold. Dude is very successful. Then again, maybe he's so intelligent he surrounded himself with more intelligent people...🤔

It was a stereotyping joke, but I don't doubt he's a savvy business person. I'm actually glad and appreciative for what he's done for the sport. I am admittedly more of a Cabela's fan though, or was...

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2 minutes ago, Junger said:

It was a stereotyping joke, but I don't doubt he's a savvy business person. I'm actually glad and appreciative for what he's done for the sport. I am admittedly more of a Cabela's fan though, or was...

Oh, I took it in the spirit you meant it. I liked Cabela's as well. The hunting side of Cabela's was far superior to BPS. The biggest issue I had with Cabela's is there were no stores in the south. It was all mail order for us. I never traveled far enough to the north to actually set foot in a Cabela's store. 

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2 hours ago, the reel ess said:

My wife's aunt had a pest control contract on her house with a warranty from a particular pest control company. That company would pay to fix termite damage while under their treatment. The company was bought out by Terminix and they continued to service the contract. The aunt died and my wife put the house up for sale. We found out there was termite damage and also discovered the warranty was void. Terminix basically billed her aunt the same money as before, but ended the warranty. They were only coming and treating. We asked the realtor if she thought we should pursue the matter and she said it was no use. Terminix had already gone to court to clear the way to do it.

 

I know this is not exactly the same thing, but when a company gets bought out, it's not the same company.

It depends on the type of sale.  If Terminex bought the assets of the other company, then they are not liable for the other company's debts and obligation.  In the case of Cabelas, BPS bought and continued to operate Cabelas.

 

In reading what you said about the pest control companies, it seems that Terminix did not operate the business under the prior company's name.  The devil is in the details.

 

 

 

 

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29 minutes ago, NiagaraRiver said:

Tacklewarehouse.... that's all

And Academy for me.

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Wal-Mart! Lol

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Best alternative for lifetime warranty now is Scheels - 13 states and 27 stores, obviously smaller than BPS/Cabelas - but employee owned so less likely to get acquired.  Walk in with one of their damaged rods, and walk out with a new one no questions asked.  Nice people too..

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Wow, that was really weak. If it was a lifetime warranty when you bought it the "right" thing for your situation would have been to replace it and let you know of the new policy moving forward. There's far too much competition these days to lose loyal customers over a low cost warranty return.

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15 hours ago, NorcalBassin said:

 There's far too much competition these days to lose loyal customers over a low cost warranty return.

There is no customer loyalty. It's a dog eat dog transactional race to the bottom. The enthusiast gets fleeced and its their doing. Sorry.

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There was a similar issue when Shimano bought out Loomis. But when I worked at Cabelas’s part time earlier this year it was still fresh in the transition stage. Cabelas has a stronger presence in the western US  while Bass Pro has stronger presence in the east of the Mississippi. Pretty much Cabela’s always trained it’s employees to take care of their customers no matter what happens or how many times they may break something, maybe to a fault. Some of my coworkers told me as soon as JM bought them out the first thing they did was fire 8 managers because it was too “top heavy”. I recently ran into one of my former coworkers and he said they barely get any discounts on anything anymore including Cabela’s brand. But I can say that we took back a lot rods whether they were cabelas brand or not that were broke due to recklessness on the customer’s part. Only thing from their brand that I think is worth buying is rain suits and PFDs, they also got some nice spinning reels but anything outside of that there isn’t much I could personally use. 

 

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7 minutes ago, LxVE Bassin said:

I recently ran into one of my former coworkers and he said they barely get any discounts on anything anymore including Cabela’s brand.

 

I think what he meant to say is, "they barely get any discounts on anything anymore EXCEPT Cabela's/BPS brand."  

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6 hours ago, LxVE Bassin said:

I recently ran into one of my former coworkers and he said they barely get any discounts on anything anymore including Cabela’s brand. 

 

I checked with one of my friends that still works at BPS. All BPS and Cabela's employee's get a 45% discount on branded merchandise, 15% on everything thing else. I realize that Cabela's offered a 5% over cost discount for employees with approximately 7 years service, but 45% is nothing to sneeze at. Not sure what he's talking about?

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On 11/28/2018 at 8:27 PM, Tyler. said:

Wal-Mart! Lol

Dollar General.  :) 

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On 11/26/2018 at 10:34 PM, Bluebasser86 said:

Unfortunately people abuse those lifetime warranties and that's often a major cause of why they get pulled. I saw some awful stuff returned when I worked at Cabela's, brand name stuff that was 10, 15 years old, or clearly abused, but it had a lifetime warranty so it was taken back. 

What's wrong with taking back 10-15 year old gear that was used and that didn't hold up? If they are going to offer lifetime, they should expect gear listed as lifetime to be brought back if it doesn't last. I don't think that's abuse of the system. 

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9 hours ago, Glaucus said:

What's wrong with taking back 10-15 year old gear that was used and that didn't hold up? If they are going to offer lifetime, they should expect gear listed as lifetime to be brought back if it doesn't last. I don't think that's abuse of the system. 

I guess I don't see in my comment where I said anything about the gear "not holding up". It was the steady stream of gear that was years, sometimes over a decade old, being returned so the person could upgrade to the newest version of the item that really shocked me when I worked there. Or the people who would almost brag about how badly they would abuse their gear because they could always just bring it back and get a new one if it broke. I guess maybe some folks don't see it as an issue, but it's morally wrong to me. If a product has a lifetime warranty and it breaks from normal use, then I could understand someone wanting to use the offered warranty, but taking advantage of it just so they can always have the newest gear or so they don't have to take care of their gear? That's where I see the issue.

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If Cabela's doesn't do something to curtail the expenses associated with their dumba$$ return policy, they will find themselves insolvent and at the mercy of it's competitors.... :) 

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2 hours ago, reason said:

If Cabela's doesn't do something to curtail the expenses associated with their dumba$$ return policy, they will find themselves insolvent and at the mercy of it's competitors.... :) 

The mark up on Cabela's brand clothing is so high, that they could easily afford the cost of the return policy. they aren't the only store that offered the lifetime warranty on their house brand. LL Bean has long been known to offer the same policy that many of their customers appreciated.

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13 minutes ago, Scott F said:

LL Bean has long been known to offer the same policy that many of their customers appreciated.

I know this has been discontinued on waders.  The lifetime warranty was the main reason people up here bought them at $200 or so a set.

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