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General => General Discussion and ??? => Topic started by: brandon on October 04, 2024, 06:57:43 AM
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Can anyone else confirm they are entering into insolvency proceedings? I assume this is heading towards bankruptcy or looking for a buyer? Probably the second option. It has happened before, so just curious from any MHM owners out there.
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I'm like 90% sure it's their third time... They already lost their dealer in Mexico back to M&R.
Kinda sucks because they had/have some incredible innovations and great things come out of there, but another Austrian company Maricode had issues(more drastic) but they screwed lots of people over.
I just don't see how if you owe suppliers and have no money how you are going to make a consistent product going forward. Or at least have the correct parts to service previous version/suppliers equipment.
When a company that has innovations others did/do not gets hit it hurts the overall industry progressing forward.
Anyway, enough of my .02. The Insolvency proof is below.
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Hate to see that, thats the brand id buy if it wasn't M&R.
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MHM will try to restructure. They will try to offer 20% to creditors and see if they agree.
Time will tell, as it always does.
The big problem is machine sales in the last 9 months in the US and worldwide are down 50-60%.
Tuff to spin, that consumer confidence is strong.
The big problem in my opinion, is the major players are all owned/ controlled by private equity companies including MHM. Private equity does not invest to help companies grow long term.
They invest to make giant profits. When they dont, they shutter the company, and take a write off.
The best the Screen print industry can hope for is the sales will flatline and companies will try to react
The best that they can. All of the said companies, have been, and are up for sale. Nobody is buying.
They will all try to restructure existing debt and hope! Good Luck! To further complicate the issue,
Is shipping/ transportation cost as well as lead times, part availability. MHM fabricates 90% of their parts. They do not build with off the shelf solutions. In my opinion companies that will survive an prosper will be smaller in size, not depend on global sales, and owned/run by their owners/ employees.
Instead of private equity groups. From my position, as someone that works on all these machines, they need to return to more analog, simpler machines. Nice to have all the bells and whistles, but being able to source parts, and get them fast is more important. Downtime will kill all industry.
My opinion
Winston
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From my position, as someone that works on all these machines, they need to return to more analog, simpler machines. Nice to have all the bells and whistles, but being able to source parts, and get them fast is more important. Downtime will kill all industry.
My opinion
Winston
The thought of machines reverting to variations of a Brown ElectraPrint makes me uneasy. I just can't. I LOVE knowing where everything is and telling the press what to do from one point. Although Brown DID jazz their machines up at Print United with a new two tone paint job... 8)
Winston, I love ya and miss ya, actually sent business your way about a month ago with a dryer issue! Hope you are leaving the dream!
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Lake Shirts runs 73 MHMs. Dont think they're worried, probably have a few extra presses just for parts!
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The people that I have spoken to that are fairly close to the situation are not overly concered at the moment. This happened once before in 2008/2009 and they came out of it fine, but you never know.
Lakeshirts has quite a few more MHM's in other facitities they own, I don't know the total number of machines but it's over 100. Hanes has a bunch as well as some other large printers.
They brought back Florian Freilinger way to late in the game IMO
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Was going to say Lake shirts now has over 100 across 3 locations up here.
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Well said Winston. Businesses that are run as a business tend to fare better than businesses run as an investment.
The end goal is the same for both, make money, but one style tends to try do so at the sake of anything else.
The company that bought them in 2009 was also in the espresso machine business if I'm not mistaken.
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If anyone can turn MHM around, Florian has the best shot! He is a good guy from what I have herd.
Tough for any business manufacturing in Austria, Germany these days.
I think for this industry, at its current projection, with less sales, I think you will see Manufacturer direct. Prices need to come down industry wide. I believe prices have risen,
Any company can only cover so much bad decisions/ debt and pass it on to end users. Alex.Brown machines? Never sold one, only worked on a dryer or two. No disrespect to the company, just have not
Had the need. I would not say less features, only less displays, softwear to run machines. I know people that own their machines out right and have the machines shut down on a Friday afternoon, and they cant run until Monday so they can receive a code to operate. Or if the industry had a choice to use
Opensource softwear I would feel I would have better options.Lots of good equipment being built world wide. Setting up a shop in Vegas to do Allover/ Jumbo prints if any of you guys have a need. Hit me up!
Still turning wrenches, but difficult when parts are hard to get!
Winston
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If anyone can turn MHM around, Florian has the best shot! He is a good guy from what I have herd.
Tough for any business manufacturing in Austria, Germany these days.
I think for this industry, at its current projection, with less sales, I think you will see Manufacturer direct. Prices need to come down industry wide. I believe prices have risen,
Any company can only cover so much bad decisions/ debt and pass it on to end users. Alex.Brown machines? Never sold one, only worked on a dryer or two. No disrespect to the company, just have not
Had the need. I would not say less features, only less displays, softwear to run machines. I know people that own their machines out right and have the machines shut down on a Friday afternoon, and they cant run until Monday so they can receive a code to operate. Or if the industry had a choice to use
Opensource softwear I would feel I would have better options.Lots of good equipment being built world wide. Setting up a shop in Vegas to do Allover/ Jumbo prints if any of you guys have a need. Hit me up!
Still turning wrenches, but difficult when parts are hard to get!
Winston
would love to learn more of the all over prints!
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There is so much used equipment on the market, even hard to find machines less than 7 years old in the past at low prices. This is what the industry is dealing with now. There is less demand for new equipment and the mfg. know it. There will be further consolidation. Saw it in the graphic screen printing side with svecia, sias and others.
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plus with the rise of digital, many folks are opting for small digital machines, instead of big screen printing machines.
Same thing that happened in the 80s/90s as mentioned about graphics industry.
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Winston! It's good to hear from you again and if you are in the Atl area, swing on by. Well said!
-Brad
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If anyone can turn MHM around, Florian has the best shot! He is a good guy from what I have herd.
Tough for any business manufacturing in Austria, Germany these days.
I think for this industry, at its current projection, with less sales, I think you will see Manufacturer direct. Prices need to come down industry wide. I believe prices have risen,
Any company can only cover so much bad decisions/ debt and pass it on to end users. Alex.Brown machines? Never sold one, only worked on a dryer or two. No disrespect to the company, just have not
Had the need. I would not say less features, only less displays, softwear to run machines. I know people that own their machines out right and have the machines shut down on a Friday afternoon, and they cant run until Monday so they can receive a code to operate. Or if the industry had a choice to use
Opensource softwear I would feel I would have better options.Lots of good equipment being built world wide. Setting up a shop in Vegas to do Allover/ Jumbo prints if any of you guys have a need. Hit me up!
Still turning wrenches, but difficult when parts are hard to get!
Winston
would love to learn more of the all over prints!
There was a guy on here or the old forum that did all over printing had Anatol built machines just for it, I know he moved the company so what happen to him? plus I thought allover was just about dead or is it making a come back.
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Opensource softwear I would feel I would have better options
MHM was running Linux on their mid-2000's machines. Not sure if it was a private fork though, probably was.
There was a guy on here or the old forum that did all over printing had Anatol built machines just for it, I know he moved the company so what happen to him? plus I thought allover was just about dead or is it making a come back.
Dave at Spreading Ink? Kind of a perfect case study in the feasibility of all-over printing.
On the Eco XL we can print 28x39" or so, and it comes up occasionally for us, but I regret every time we do it.
You literally can't charge enough. Starching shirts takes foooorrrrrreeeevvvvveeerrrrr.
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Hello All
Dont want to derail thread. MHM builds fantastic machines. Sometimes life gets in the way.
Maybe Lakeside should buy them, move them to MN, let Spsi do the admin/support, and let Florian run the company. Problem Solved. No Joke.
Daryl, The company you were talking about was Spreading Ink. Run by Dave and his wife. Did great work. Sad to say, they were made an example by the 2012 Doj/immigration for their workers. The crew
He put together were awesome. The moved and opened up in Springfield Missouri into a great facility. The workers were not the same. Company failed. I moved alot of the equipment out. Please tell me Allover is not dead, I will have to resurrect it or lose my azz! I will be able to print 6 color 44”x58” so 5x
Can be done, as well as long sleeve of various sizes. Putting all together now, hopefully start by end of month. Plastisol on the streetwear side, waterbase on other. A little bit concerend with printing waterbase in the Dessert! Much better to print in humidity. Miatsui / Jantex inks in LA something will be
Figured out. All over stuff on west coast is going to Vietnam. 100 piece minimums. The people are paying to do so. From my perspective it has to be reasonable but profitable. Will have all info soon.
Brad , when I hit Hotlanta I will call and you can have your limo pick me up. If anyone made money in the last few years, i am sure you have! Then we can go to Sonny’s house and have him cook on the big green egg.
Winston
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Definitely a could you/should you. I modified a manual press to take two M&R wing pallets and printed one color antique white discharge 32" wide shoulder to shoulder for our pre-print line. Extremely popular. Too popular actually. Time studies proved that were grossly undercharging. Needed a loader/unoader and me to print. That was tough stuff to print manually too! Company closed and preprint line was sold off and last I saw they were still selling them out of Maryland but they may have automated that. At Harlequin Nature Graphics we had two dedicated Scizzor pallets and we maxed out at 1,200 per ten hour shifts. M&R was always giving us beta stuff so dont recall what we paid for them but I believe the pallets were at least $1,200 and we needed 20 of them. Plus 4 custom built tee-shaped flashes and more mods. And yes, dedicated machines. You didn't want to switch back and forth from std to oversize. Oh, and we did index a guy (he was OK but never saw him again! Company also long since out of business.
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This is what I got from a friend at MHM:
"MHM did not file for bankruptcy. That's what some people and competitiors want our customers to believe and some press releases are incorrect.
Inorder to reposition for the future we applied for a legal resturcture project run the the Austrian government.
We are going into a restructuring procedure according to the Austrian restructuring code."
I hope they make it, their machines are great. So well made. I wish them the best of luck.
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It's going to be a tough hill to climb. A couple of things stood out from this article. 13.4m revenue target and current liabilities of +6m. Tough sledding with you have debt of more than half your revenue. As a small company, it is very challenging to weather the huge swings in the industry we saw over the last 3 years. You can't cut enough costs to stay solvent.
It is not a popular opinion, but their best option to try and salvage any shareholder value and take care of their existing customers would be to sell to someone like Hanglory or Biyong ouf to China. These huge companies would love an opportunity to get a brand and IP like MHM. Mfg in China sells through existing dealers and continues supporting the existing customer base with parts. For those who don't know, Hanglory is the one who makes the M&R ovals and hybrid machines. Huge company.
http://www.hanglorygroup.com/en/article/Oval.html (http://www.hanglorygroup.com/en/article/Oval.html)
https://kurier.at/wirtschaft/millionenpleite-des-druckmaschinen-herstellers-mhm/402957189?fbclid=IwY2xjawFz3XhleHRuA2FlbQIxMAABHe8h2dHajPSrvb-4x4Jdwg6nDESxiQzpsgHXyjJ4It5x5pD8npFF-AnUkQ_aem_h9chfTxRCPrg0GCKXB23sw (https://kurier.at/wirtschaft/millionenpleite-des-druckmaschinen-herstellers-mhm/402957189?fbclid=IwY2xjawFz3XhleHRuA2FlbQIxMAABHe8h2dHajPSrvb-4x4Jdwg6nDESxiQzpsgHXyjJ4It5x5pD8npFF-AnUkQ_aem_h9chfTxRCPrg0GCKXB23sw)
Machines Highest Mechatronic GmbH (MHM), based in Erl, Austria, has entered into insolvency proceedings at the Landesgericht Innsbruck, confirmed by Venka Stojnic from Creditreform. The company, which was founded in 2010 and employs 55 people, specializes in developing, producing, and selling screen printing machines for textiles, including rotary and carousel printers as well as digital printing machines.
The company follows the path of the former MHM Siebdruckmaschinen GmbH, which also went bankrupt in 2009, leading to a liquidation process and a payout of 27.3% to creditors.
MHM currently faces over €6 million in outstanding liabilities, with total liabilities reaching €8.62 million in 2022 and a loss of €1.458 million. The company’s revenue was significantly impacted in 2023 due to various factors, including the war in Ukraine, global inflation, high interest rates, and delayed or canceled orders. These issues have placed the textile industry under significant strain, contributing to market realignments and putting MHM’s 2023 revenue targets of €13.4 million at risk.
The company has implemented cost-cutting measures, including reducing personnel costs and procurement expenses, to mitigate the impact of these financial challenges. MHM believes these steps have improved its competitiveness, positioning it better for future opportunities.
The company is aiming for restructuring, with ongoing operations considered crucial for a successful recovery. However, it remains to be seen whether MHM can demonstrate a sustainable business model going forward, which would be necessary for creditors to support the continuation of operations.
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A Solid Observation Jepaul!
I agree. Hopefully they will pull it off. However, a pretty tough hill and sled to pull.
Great machines.
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This might sound silly but building a really good reliable machine/product can hurt you in the long run, I think about that sometimes with my customers that order T-shirts...our goal is to produce the highest quality prints and print it on the best shirts we can buy. Doing that makes the customer very happy but the print and T-shirts last so long they might not need any for a year LOL same with good machines lasting 10 to 15 years or longer unless your the type that wants the new innovation every year, never used an MHM but from what I've heard and you guys talk about they are pretty good press's that last.
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There will be more consolidation in mfg of SP equipment in the USA too. I think most are private equity. Maybe mergers or dissolutions. It’s so sad but innovation like DTF are impactful on analog machinery manufacturers bottom line.