Ithaca Gun office empty, phones disconnected

http://www.auburnpub.com/articles/2005/06/10/news/news05.txt

By The Citizen
The Ithaca Gun phone number has been disconnected and the company's parking lot is empty, but a member of the management team said the business has not ceased operating.

Whatever is going on at Ithaca Gun, the firearms maker has generated plenty of rumors and phone calls.

Cynthia Aikman, the executive director of the Auburn Industrial Development Authority, has not been able to reach any company officials.

Ithaca Gun had moved from its longtime home in King Ferry to the former Johnston Paper plant on Allen Street in late April. The company announced its arrival at the May 5 Auburn City Council meeting and said it was employing about 50 people.

But in recent days the company's phone lines - both the old number in King Ferry and a new one in Auburn - have been disconnected. The company's Web site has also been taken down.

And there has been no official word released by the company.

The Citizen heard from a gun owner frustrated because the company was repairing one of his guns and he was unable to find out what has happened to it. Aikman's telephone was also busy.

"A lot of people are calling, and I don't have answers," she said.

Billy Weston, the company's director of sales, said Ithaca Gun is not closing down permanently. He said he could not provide too many additional details, but said the company has gone into an operational hiatus as it transitions into its new site.

A lone Ithaca Gun van sat in the parking lot at the Allen Street building on Thursday afternoon.

Although Aikman is concerned about the company's future, she stressed that it did not receive any financial incentives from the city to relocate.

"The company moved here because they thought this would be a good location for them," she said.

Ithaca Gun had outgrown its former site, a converted school on Route 34B, where it had been for 17 years.

The 124-year-old company's financial struggles in recent years have been well-documented.

Ithaca Gun Company earlier this year had a $12,000 judgment filed against it by a Watertown educational television station because the gun manufacturer had agreed to underwrite a hunting show, but never paid. Several other judgments were filed against the company for unpaid bills as well and there were problems with the state Department of Labor regarding unemployment insurance payments. The labor department said in February the issue was being resolved.

- None of that intel sounds too positive... :( .

I hope they pull through this or get purchased by a solvent company. Their product is too good to let it die. I purchased one of their Model 37 "Classic" guns about 4 years ago when they offered them. I hunted with my fathers old model 37 when I was a did and it's the only thing I asked him to bequeath to me when he dies.

I guess my $50 Ithaca certificate is questionable.

It will be a sad occurrance if Ithaca is ideed, on the ropes. A quality product that will be greatly missed if operations cease.

That is sad news, Like Schrade knives.
I have a model 37 I bought about 10 years ago and never fired.
I've got other shotguns I use so it is in the safe.

I am going to try to get to Ithaca's NEW location in Auburn, NY this week as it is not too far from me. I sure hope I find it a bee hive of activity instead of an empty building.

When I visited the Ithaca booth at this year's SHOT Show it looked pretty sad. They had, maybe, 5 versions of the ol' Model 37 and some ball caps.

I think that the Chicom tactical version of the 37 showed just how behind the times Ithaca has been of late. The Chicom sells for under $200 and did all that Ithaca's did.

I've owned 37's, 51's, 49's, and even an Ithaca WWII 1911 and now it looks like it's over. What once was an innovative and vibrant company became a one trick pony and the pony was very tired.

Adios Ithaca, it was good to know ya!

I did in fact get to Ithaca's new plant in Auburn,NY.. It wasn't a bee hive but there was an Ithaca van parked on the side and 4 cars out front and there were some lights on. I had a cell call and had to leave before I could go knock on the door so maybe the next time I can go I will knock and see what happens.
I can immagine a lot of things happening with a NEW plant ie: they are setting up shop, locating machines, re wiring as needed etc, etc. This does take some time to do as I was in construction many years.
Personally I think Ithaca should be more upfront with what is happening, estimated start dates etc. UNLESS of course you are hiding from people and are afraid to tell what is really going on.

I did in fact get to Ithaca's new plant in Auburn,NY.. It wasn't a bee hive but there was an Ithaca van parked on the side and 4 cars out front and there were some lights on. I had a cell call and had to leave before I could go knock on the door so maybe the next time I can go I will knock and see what happens.
I can immagine a lot of things happening with a NEW plant ie: they are setting up shop, locating machines, re wiring as needed etc, etc. This does take some time to do as I was in construction many years.
Personally I think Ithaca should be more upfront with what is happening, estimated start dates etc. UNLESS of course you are hiding from people and are afraid to tell what is really going on.
Ithaca (Phil) had UPS pick up a rifled barrel at my house back on Jan 11, as it had a manufacturing defect. They told me it would take about 2 weeks to fix or replace. ON March 28, via the phone, folks at Ithaca (Patrice), told me she would take care ofit and get back to me.
I am getting the feeling I will never see my barrel again.

fishdog52: Well all I can say is that this is the middle of June which is a lot longer than 2 weeks from the time you sent it in.. I SURE hope you get it back too.

I ordered 3 parts from Patrica on April 18, 2005 and was told that they were in stock, and would be shipped in 2 weeks, and were charged to my credit card and were paid. As to date have not received the parts and even no email reply when their web site was up. They need to get back on line and even respond to all that have sent in orders and guns, or else go to State Attorney General Office for action.[B]

Send a request, in writing, to your credit card company indicating the charges (copy the statement if possible) and that the items were never received and they will not answer calls or attempts to reconcile the matter.

They will back charge them and refund the money to your account. Do it ASAP.

Regards

The latest news:

http://www.syracuse.com/search/index.ssf?/base/news-0/1114555944160580.xml?syrnecay

Ithaca Gun Co., a pillar in the production of firearms since 1880,
shut down shortly after moving to Auburn's tech park this spring, a
company official said Tuesday.

"We're just tapped out. We can't do it any longer," said Ithaca's
Andrew Sciarabba, one of seven investors who own the company.

Sciarabba said Ithaca Gun was several hundred thousand dollars in
debt and was unable to compete profitably against foreign gun manufacturers.

The investors are hoping to find someone interested in buying the
company's well-known name and resuming production in Central New
York, he said.

"We're looking for someone to start up the business again, but I
don't know if that is going to happen or not," Sciarabba said.

The demise of Ithaca Gun triggers potentially bad news for Cayuga
County, which loaned $150,000 to the firm for operating expenses last
fall when it had about 26 employees.

The county loaned the money from its federally funded business
assistance revolving loan fund, said county Planning Director David
Miller, who in his position oversees the loan program.

The company put up its equipment as collateral for the money, but had
missed its May and June loan payments totaling $986.30, Miller said.

County Legislature Chairman Herbert Marshall, who sits on the
committee that approved the loan, said he would prefer that the
county work with the company in finding a buyer rather than seize the
equipment used as collateral.

"If there is the possibility to protect our financial interest and
keep them running, that would be the best final solution," Marshall said.

In late April and early May, Ithaca Gun relocated to the former
Johnston Paper Co. building in Auburn's tech park off Division
Street. On Tuesday, there were two cars in the parking lot and a
company van without license plates.

Before moving, the company had operated out of the former King Ferry
Central School building since 1989.

Ithaca Gun opened for business at the base of Ithaca Falls in 1880
and forged a reputation for making affordable and durable shotguns
such as the Deerslayer and Deerslayer II slug guns and Model 87 field shotguns.

http://www.auburnpub.com/articles/2005/06/23/news/news02.txt

It was late May and Ithaca Gun Co.'s future finally looked promising.

Andrew Gibson, the company's potential new owner, met with David
Miller, Cayuga County's director of planning and economic
development. Gibson, of Scituate, R.I., told Miller how the
historically important firearms company was working to resolve some
of its financial issues. He said there was new management in place
and he showed Miller a new marketing plan, an extensive analysis of
costs and a new labor structure. Gibson said he would be investing a
significant amount of his own money.

"He had great enthusiasm and he seemed to understand the business,"
Miller said. "I was very impressed. I don't know what happened to
change his mind. It was a complete shock to me."

Gibson decided not to go through with the purchase. The group of
investors that owns the company - which moved from King Ferry to the
city of Auburn technology park at the end of April - shut it down and
is now looking for another buyer, Miller said.


"He was interested, but things just didn't work out," said Gibson's
wife, Katherine, who is also one of his business partners.

As the Gibsons learned more about the 124-year-old company and delved
deeper into its financials, they realized the numbers weren't going
to add up, she said.

"He's a sportsman, and he wanted it to work," she said. "But it just didn't."

When Gibson backed out, Andrew Sciarabba, the major investor of the
seven partners who bought the company in 1995 out of a bankruptcy,
decided to close, Miller said.

The company is several hundred thousand dollars in debt. Part of that
is most of a $150,000 loan from Cayuga County's revolving loan fund.
Miller said Ithaca Gun has missed the May and June payments that
total just less than $1,000. The money was loaned for equipment while
the business was still in King Ferry.

As collateral, the company put up existing manufacturing equipment,
as well as the Ithaca Gun trademark. The company was founded in 1880
in Ithaca and became world renown for manufacturing high-quality,
affordable guns such as the Deerslayer and Deerslayer II.

It went out of business for a time, and then was re-established in
the 1980s, when it came to King Ferry. When the company again fell on
hard times, Sciarabba and his partners bought it.

It has struggled recently. Ithaca Gun earlier this year had a $12,000
judgment filed against it by a Watertown educational television
station because the gun manufacturer had agreed to underwrite a
hunting show, but never paid. Several other judgments were filed
against the company for unpaid bills as well and there were problems
with the state Department of Labor regarding unemployment benefits.
The labor department judgment was satisfied earlier this month.

While they were still in King Ferry, Miller said, Sciarabba and his
partners pointed out one of the company's greatest difficulties was
operating in an antiquated former school building that was energy-inefficient.

Miller said he helped connect Ithaca Gun officials with
representatives of Johnston Paper, the firm that owns the Allen
Street property in the technology park. Johnston Paper moved to a new
facility in Aurelius in 2004.

On May 5, at an Auburn City Council meeting, Katrinka Ryan, Ithaca
Gun's finance manager, announced the company was under new
management, was in Auburn and was working with the city's Office of
Planning and Economic Development. Eventually, the company, which had
employed 26 people in King Ferry, would have 50 workers, Ryan said.

Miller said he and Sciarabba talk weekly and he's convinced Ithaca
Gun is actively working to find a buyer. He said the county won't
foreclose on the loan yet.

"It would be premature to call it in and foreclose," Miller said. "We
desire to see the company survive and prosper, but we're not going to
let this go on indefinitely."

Miller is confident the county will get its money. He said if it does
foreclose, it will "be in the first position" to own the gun
manufacturing equipment, worth about $183,000, that the company put
up as collateral. Subject to legal interpretation, Cayuga County will
also likely own the company's famous trademark, an intangible that
was also offered as loan security.

The county would contract with experts in the firearms manufacturing
field to help sell the equipment and trademark.

Sciarabba could not be reached for comment Wednesday.

When Gibson and his business partners looked like they would step in
and save the company, Miller said there was a great degree of optimism.

The purpose of the meeting with Miller was to see if the revolving
loan could be transferred from Sciarabba's group to Gibson's. Miller
said he was prepared to arrange a meeting with Gibson and the loan
committee for further investigation.

"That's why this is such a surprise," Miller said.

"It wasn't like they were this moribund company that we hadn't heard
anything about for a long time. And the new people coming in were all
young, in their late 20s and early 30s. That's why this one is kind
of disappointing. We thought it was on the right track."

A sad demise to a great company.

Another example of "out-sourcing" and importing.

Well I can see your point. But, also, NY is a terrible place to own/run a business as far as taxes and regulations are concerned. People are leaving the state at a steady rate, especially from upstate. Ithacagun has also suffered from bad management at times since the early 80's when they first got into trouble.

I could see the company moving south to a more business friendly environment with a good management team or possibly being folded into another gun company. Really the only thing left is the Name.

Modern designs and CNC machinery would go a long way toward manufacturing in a cost efficient manner. Ithacagun was limping along for far too many years.

My '37 in the safe weeps today.

Sounds like a business plan to me, Contender

Seems like they need to make the move south, and re-group into better management, and more high tech to save money, but to do better, and keep the customers happy. Service is always number 1 that keeps the name of a buisness going.

Thanks for all the info.

From the Keys

http://www.auburnpub.com/articles/2005/06/30/news/news02.txt

Arivilla Peerboom wants her gun back.

It's actually her husband's gun, and was his father's before that,
and they want to pass it on to their grandson. The Goodrich, N.D.,
couple sent the weapon, made by the Ithaca Gun Co., to the
manufacturer in March for repair.

The Peerbooms are hoping that New York State Attorney General Eliot
Spitzer's office will help them, and dozens of other families, get
their guns from the now-closed company on Allen Street in Auburn.
After an anticipated sale fell through in early June, the group of
investors that owns Ithaca Gun shut it down.

Paul Larabee, a spokesman for Spitzer, said the attorney general's
satellite offices in Binghamton, Rochester and Syracuse have received
more than a dozen phone calls from people who have unsuccessfully
tried to contact Ithaca Gun. The company's Web site was shut down.
Phones, except for one connected to a fax machine, have been disconnected.

Meanwhile, the principal investor, Andy Sciarabba of Ithaca, said he
has every intention of returning all of the guns that have been
entrusted to the company.

One of his two remaining staff members has been working to compile a
list of customers who have inventory with the company. He encouraged
anyone trying to contact the company to send an e-mail to Katrinka
Ryan at kryan@ithacagun.com. He said letters may also be sent to the company.

"We want to get the stuff back as quickly as possible," Sciarabba
said. "We're not going to be able to repair anything. We don't have
the staff. But we do want to get the guns back to people. We know
that they all have sentimental value."

Larabee said Spitzer's office's goal is to be helpful at this point.

"We will identify the facts and issues," Larabee said. "We've had
sufficient contacts from customers, and we will be reaching out to Ithaca Gun."

Peerboom said she is out not only the gun, but the $75 the company
charged to assess what was wrong with it and the $535.50 that was put
on a credit card in anticipation that the gun would be repaired.
Several other people who contacted Spitzer's office also complained
they had put deposits down on new guns, or had paid for them and they
were never received.

"That, I can't help with," Sciarabba said.

He said it's impossible for him to refund anyone their money because
when the company closed, the investors, in essence, foreclosed on the
assets. He said there is no cash left and the company is selling
machine parts to meet payroll of its remaining employees.

It also owes most of a $150,000 revolving loan to Cayuga County.
Sciarabba said the investors had put $2 million into the company
since 1995 and "never realized one dime."

He said he and the other investors bought the company out of
bankruptcy because they wanted to rescue the reputation of the
company, which was founded in the 1880s in Ithaca. It moved to King
Ferry in the mid-1980s, where it continued to manufacture
inexpensive, high-quality guns. Ithaca Gun moved to Allen Street in
late April, but when a Rhode Island man backed out of purchasing the
company, Sciarabba said he was left with no other option but to close.

"We tried," he said. "No one can say we didn't try."

If anybody put any charges on their credit cards with Ithacagun, call your credit card comapny to see if they can refund you and back charge the company. Do it ASAP.

Has anyone heard anything more on Ithaca Gun Co.

I saw a new thread on this a few days ago, seems they have reopened in a new location. I think the link may be www.ithacaguns.com or ithaca-guns

http://www.pressconnects.com/apps/pbcs.dll/article?AID=...rchID=73234925574921

The familiar but tattered Ithaca Gun name can
once again be listed with shotgun manufacturing companies.

It's now Ithaca Guns USA, LLC, and headquarters is Upper Sandusky, Ohio.

The move from moribund to viable happened, or is
happening, fast. When I ran across the Web site
(http://www.ithacagunsusa.com/) last week, it was
still under construction and I was only the 700th-something visitor.

Craig and Floyd Marshall, owners of MoldCraft, a
molding and tool and die company that makes
plastic molds for fast food chains' salad bowls
and the like, purchased the rights to the Ithaca
Gun name, designs and inventory in December.
Using their 30,000 square-foot CNC
machinery-equipped plant and Ithaca Gun plans and
specs, the new company is already turning out
variations of the Model 37 pump that has been the
flagship of the troubled Ithaca Gun name for early 70 years.

"We've been in business for 36 years," said Craig
Marshall from his office Monday afternoon. "We
had the machinery and the know-how— and frankly I
find the gun business far more exciting than molding salad containers."

Ithaca Gun LLC, which was formed in 1995 to
purchase the company's name and assets following
the failure of Ithaca Acquisition Inc. in King
Ferry, failed itself last summer.

The company moved from its rented factory
quarters in King Ferry last spring in
anticipation of being purchased by a Rhode Island
entity. When the deal fell through, Ithaca Gun
LLC — which had defaulted on a development loan
from Cayuga County and faced significant federal
and private debt — closed its doors.

The company's barrel machine was lost as
collateral and most of the remaining tooling was
sold off, but netted just $8,200. The Marshalls
entered the picture in the fall with a purchase
offer, and a deal was was finally negotiated a week before Christmas.

"I think the former owners deserve credit in that
they turned down a larger offer to assure that
manufacturing would remain here (in the United
States) and quality would be maintained," Marshall said.

The guns are identical to those made in the past,
but Marshall notes that the use of better steel
and new manufacturing processes will improve the
quality. The company is building variations of
the Model 37 bottom-ejection pump and has plans
to eventually redesign and build the Model 51
autoloader, the NID double and possibly the
elaborate Knickerbocker trap design.

They have a service department in place that will
service all Ithaca models with the exception of
the SKBs. The new company cannot honor the
warranties on guns built by Ithaca Gun LLC,
however, because of pending legal consideration.

Ithaca Gun was founded in the 1880s and was
managed for nearly 100 years by the Smith family
until it fell on hard times and sold out to the
company that owned Brunswick/AMF in the 1980s.
That Ithaca Gun entity went bankrupt in 1986 and
a Rochester-based corporation, Ithaca Acquisition
was formed to buy the assets in 1987. That
company moved the manufacturing plant from its
original site on Fall Creek in Ithaca to a school
building in King Ferry in 1989. Ithaca
Acquisition failed in 1994 and Ithaca-based Ithaca Gun LLC was formed in 1995.

Thanks so much for the info. My 37 could use a new barrel but I have not been able to come up with what I want. These folks may have an option for me.

Thanks for the information, and the web site, maybe the email I sent will get the parts for my model 51 that I need.

From Key Largo, FL.

As an update to this topic, I found the following on the new Ithaca Guns webpage today:

Due to a number of calls and email messages we have received pertaining to guns which were sent to the previous incarnation of the company for repair and were never returned, Ithaca Guns USA, LLC would like to make the following statement:

Although we are not legally obligated to recover guns which were lost, neglected, or overlooked by the people involved with this company before we acquired it, we here at Ithaca Guns USA, LLC would like to act as a mediator between said people and Ithaca owners whose guns were not returned to them. We will perform this peripheral service as a way of "clearing the air" a bit for the few dozen folks who were left unpleasantly empty-handed after a service request. If this statement describes your situation, please CLICK HERE to write and send an email to us so that we can help you to whatever extent is possible.


D.