Bondurant shuts down amid bankruptcy
11-15-2018, 09:41 AM
#16
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Yep, by 2012-2013, all of the senior instructors had left and Culver would burn through new, young aspiring guys, paying them nothing. Then, the tracks threw the school’s out for non-payment. Laguna Seca, VIR, even Lime Rock, a steadily shrinking footprint.
I remember the day the bankruptcy was announced. Terry Lee Earwood, Divi Galicia and one or two others were leading a school at CMP (Kershaw! Sheesh, how the mighty had fallen), having not been paid for several weeks, and in the middle of the five-day week long school, the anouncement came out. Hats off to the team, they FINISHED the school, KNOWING that Culver had just, in the most public way, said “you’re not ever going to get paid.” Unbelievable.
There are a fair number of young IMSA drivers who are still owned hundreds, some thousands of dollars in wages and per diem, that they’ll never get.
Thankfully, first Dennis Macchio (principal, then successful seller, of Bertil Roos Racing School), then Demonte (without any obligation) helped some of the last people (students) who lost their money. But they couldn’t (and shouldn’t) fix the smoldering wreckage Culver left...
Honestly, with the PBIR ownership group picking up BRRS, and also a stake in the new SBRS (IIRC), along with standalone efforts by Lucas Oil School, LevelUp, Allan Berg, SimRaceWay and others, the school market has been righted and is doing ok.
I remember the day the bankruptcy was announced. Terry Lee Earwood, Divi Galicia and one or two others were leading a school at CMP (Kershaw! Sheesh, how the mighty had fallen), having not been paid for several weeks, and in the middle of the five-day week long school, the anouncement came out. Hats off to the team, they FINISHED the school, KNOWING that Culver had just, in the most public way, said “you’re not ever going to get paid.” Unbelievable.
There are a fair number of young IMSA drivers who are still owned hundreds, some thousands of dollars in wages and per diem, that they’ll never get.
Thankfully, first Dennis Macchio (principal, then successful seller, of Bertil Roos Racing School), then Demonte (without any obligation) helped some of the last people (students) who lost their money. But they couldn’t (and shouldn’t) fix the smoldering wreckage Culver left...
Honestly, with the PBIR ownership group picking up BRRS, and also a stake in the new SBRS (IIRC), along with standalone efforts by Lucas Oil School, LevelUp, Allan Berg, SimRaceWay and others, the school market has been righted and is doing ok.
11-15-2018, 09:53 AM
#17
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Originally Posted by Matt Romanowski
Skip Barber School was ruined by VC money. Skip Sold it a long time ago, but it's making a comeback.
11-15-2018, 09:55 AM
#18
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Lots of instructors were owned many thousands and earlier than you outlay, but the basics are correct
11-15-2018, 11:07 AM
#19
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Actually, the race series mechanics were the first to feel the pinch. Then, the operating and office staff, then the new junior instructors who were recruited based on the reputation of the program, and needed the job more than the people who’d been there for awhile. Finally, it was the tracks who didn’t get paid for more than a year at first, then got left holding big debt, more than $1M to Lime Rock alone. It was really ugly.
Most instructors, all except for the Seniors, were and are living hand to mouth, and left before they were too much in arrears. They simply couldn’t afford to stay. By the last few years, there was very little staff carryover, nearly every school had new junior instructors, until there was no institutional equity there, anymore.
But the number of programs, instructor corps and mechanics were all slashed due to lack of demand starting in 2008-2009, with the market never really recovering. After the move in 2011, it was a shell of its former self, and after RB’s accident at Road Atlanta, all the old guard had left...
11-15-2018, 11:22 AM
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MC was a favored skewered subject. Not because of anything personal, but instead how he could have screwed up so completely, something that was so GOOD, and had been good for so LONG.
Needless to say, 100% of the longtime SBRS family agree with 100% of your assessment.
11-15-2018, 11:25 AM
#21
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Were you there? It would take a year, maybe more, worth of programs for most junior instructors to even accumulate $1K-$2K, at the paltry daily rate...
Actually, the race series mechanics were the first to feel the pinch. Then, the operating and office staff, then the new junior instructors who were recruited based on the reputation of the program, and needed the job more than the people who’d been there for awhile. Finally, it was the tracks who didn’t get paid for more than a year at first, then got left holding big debt, more than $1M to Lime Rock alone. It was really ugly.
Most instructors, all except for the Seniors, were and are living hand to mouth, and left before they were too much in arrears. They simply couldn’t afford to stay. By the last few years, there was very little staff carryover, nearly every school had new junior instructors, until there was no institutional equity there, anymore.
But the number of programs, instructor corps and mechanics were all slashed due to lack of demand starting in 2008-2009, with the market never really recovering. After the move in 2011, it was a shell of its former self, and after RB’s accident at Road Atlanta, all the old guard had left...
Here nor there, the giant fell and seems to be working on getting up again. There are some great guys who came up through the school and worked as instructors. They are a great bunch and really work at helping people hone their craft. Even better, many are available on the open market more than ever. It's sort of the Uber effect as I see it. It's also opened the door for many of the other schools to start up. Time will tell how the vacuum is filled.
11-15-2018, 11:26 AM
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Man some of those name- Terry, Mike ,Jim , Dennis, Bruce those were the guys from my days in the Skip barber Series late 80's early 90's . They are the best and true ambassadors of the sport They are why I love racing so much
11-15-2018, 11:35 AM
#23
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Not there, but friends with many and heard all about it as it went down. Most were promised to get paid for the last schools if they did another. "I'll pay you for two cheeseburgers tomorrow if I can have one today."
Here nor there, the giant fell and seems to be working on getting up again. There are some great guys who came up through the school and worked as instructors. They are a great bunch and really work at helping people hone their craft. Even better, many are available on the open market more than ever. It's sort of the Uber effect as I see it. It's also opened the door for many of the other schools to start up. Time will tell how the vacuum is filled.
Here nor there, the giant fell and seems to be working on getting up again. There are some great guys who came up through the school and worked as instructors. They are a great bunch and really work at helping people hone their craft. Even better, many are available on the open market more than ever. It's sort of the Uber effect as I see it. It's also opened the door for many of the other schools to start up. Time will tell how the vacuum is filled.
You got that right!
11-15-2018, 11:12 PM
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I had an excellent experience doing a 4day GP course, and didn’t feel like this was a case of incompetent people running the business - the average instructor tenure was high, the staff was very hospitable and Bob/Pat were involved in the experience and just a pleasure to deal with.
Net, from a customer experience, nothing more I could have asked for. No idea about the back end of the business but clearly something wasn’t working.
From the short time spent with Bob during the school, and the passion and pride I felt from him, I know he ismt taking this lightly.
I guess it is what it is, unfortunately.
Net, from a customer experience, nothing more I could have asked for. No idea about the back end of the business but clearly something wasn’t working.
From the short time spent with Bob during the school, and the passion and pride I felt from him, I know he ismt taking this lightly.
I guess it is what it is, unfortunately.
11-19-2018, 01:35 AM
#27
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ha, well, no news as I expected. I spoke with one of the instructors, and they had zero idea as to the future as of now. It seems it was a myriad of things that led to this outcome, but given the level of corporate sponsorship, I have a hard time believing the school couldn't turn a profit. I had planned to do a 2 day course in the mazdas this January as its pretty much a full day of open track between the few of us at our own pace, but I guess that is now a write off for next tax year.
11-19-2018, 03:32 AM
#28
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The last few years I have noticed the photos on the promotional posters at the airport suddenly had photos of him and his wife versus just the legend the school was named after. I remember looking at my wife and saying how odd I thought that was and that it probably wasn't a good sign. I then learned she was the CEO. I'm sure she is intelligent and I have been told she is friendly but it handing over a business of that complexity to someone with no industry experience at all is a boom or bust move. From my perspective the partnership with FCA was not a good idea, sure they get the Hellcat customers coming for some training but outside of the Hellcat crowd who wants to go to a school where they use 4500lb cars on ancient chassis?
The reasons they listed for filing on their bankruptcy documents were inconsistant sponsorship from FCA and the fact that FCA took back their Vipers (probably the car that brought in non FCA students). A loan from Chase for 130k that they had only been paying interest payments on and Chase was applying a lien on property they own and that they had not paid rent to the tribe since September and they were worried they would be evicted.
Sad to see them go and I doubt they will come back. I worry that the tribe will redevelop that land and we will lose access to some tracks that while they are not great are better than what most communities have access to.
Today the local PCA sent out an email notifying everyone that the event scheduled for December 1st at Bondurant was cancelled and it was being moved to another track up north. NASA was able to hold their event on the school track this weekend but it seems the tribe allowed that as an exception.
The reasons they listed for filing on their bankruptcy documents were inconsistant sponsorship from FCA and the fact that FCA took back their Vipers (probably the car that brought in non FCA students). A loan from Chase for 130k that they had only been paying interest payments on and Chase was applying a lien on property they own and that they had not paid rent to the tribe since September and they were worried they would be evicted.
Sad to see them go and I doubt they will come back. I worry that the tribe will redevelop that land and we will lose access to some tracks that while they are not great are better than what most communities have access to.
Today the local PCA sent out an email notifying everyone that the event scheduled for December 1st at Bondurant was cancelled and it was being moved to another track up north. NASA was able to hold their event on the school track this weekend but it seems the tribe allowed that as an exception.
11-19-2018, 07:56 AM
#29
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A shame... with greater local ramifications for track use than we thought.
