I've personally written and made an appeal to the powers that be in Italy. So far I've gotten some responses, but in typical bureaucratic messes the hedge fund we were talking to in New York has lost interest in Malaguti Moto. We have some offers to help rescue the firm, how long those offers will be on the table is anyone's guess since nobody knows what to do about making the offer in the first place.
I think I finally found the right person to speak to, but he just told me it's out of his hands only the owners can decide what to do.
See in America when someone has $30 million to invest and offers to fly you to Italy to help buy a failing Italian manufacturer you expect someone to answer the phone.
The script reads like this:
(phone rings)
Voice of Hedge Fund Manager: Is this the Scooter Maven?
Maven: Yes, this is he.
Voice: We represent a large New York firm interested in turning around European luxury brands and we have billions of dollars to invest, we understand you are the number one expert in modern Italian scooters. You seemed to have a track record of knowing what is happening in the Motorized Driven Cycle world of super sexy Italian names so we want to hire you. Do you have time for drinks? Can we buy you dinner? We'll be on South Beach this weekend for another meeting, let's meet.
After some partying, nice dinners, one lobster that fell on the floor by accident, a canceled trip to Italy.
A month goes by.
Voice of Hedge Fund Manager: We have tried everything. We sent a fax, we call, and nobody answers the phone.
Maven: That's because they are on strike. All the employees that answer the phone in Bologna are out protesting.
Voice of Hedge Fund Manager: Why doesn't the owner call us back?
Maven: Because they want to tell the Italian people nobody is interested.
Voice of Hedge Fund Manager: Also, these terms are ridiculous I thought the Italians needed an investor why can't someone serious reply to us?
Maven: Because its Italy, the adviser they hired got fired, the experts the advisers hired got fired, and then they told me they didn't need me so now the process starts again. Malaguti has hired new experts to help find a partner. See it works this way in Italy you have to bankrupt the company first before the government steps in and gives money to everyone including the people who made it go broke in the first place.
Voice of Hedge Fund Manager: That makes no sense the skilled workers who make the scooters will be lost. The brand equity! We requested financial info, the liabilities, nothing has been replied to! Do they want investors or not?
Maven: This is all part of the Malaguti plan no worries. See you have to wait they believe the value of the company goes up the longer they take to make a decision. They think the Chinese are stupid and that they will pay more if there are no workers. In the meantime are you interested in Moto Morini? I also have a good suspension company looking for funding.
Voice of Hedge Fund Manager: Call us when you have something in writing, it was great hanging with you. We will come down for the next Ultra Music Festival so let's stay in touch.
Maven: Wait what about the loan to expand my business MRP here in Miami?
Voice of Hedge Fund Manager: We will shoot our friend an email on it.
Click.
Maven: what? No more lobster dinner on Chase Banks account? Thanks guys.
The end of part 1
That's this scene in the movie so far.
In the meantime now the process in Italy is getting started with the Minister of Economic Development, the secretary general of something. The Unions, the ex-workers, etc....
Look they all need to come together, because sadly its an incredible waste of everyone's time if nobody is serious about saving the brand.
Members citizens ask the Minister of Economic Development Romans "an appropriate industrial policy to avoid risks of outsourcing."
http://corrieredibologna.corriere.it/bologna/notizie/economia/2011/22-aprile-2011/pd-il-governo-sostenga-motociclo-bolognese-190490382463.shtml
Il governo sostenga il distretto bolognese del motociclo con «una adeguata politica industriale evitando così anche concreti rischi di delocalizzazione della produzione». The government supports the district of Bologna motorcycle with "an appropriate industrial policy and also avoid specific risks of relocation of production."
The parliamentarians of the Democratic Party also points to the current difficulties of the Minister for the heavy industry companies in Bologna: "This grave situation has recently led to the failure historical brands such as Moto Morini, and given widespread corporate crises such as Masiero (already closed ), the Verlicchi Spa, Cauldrons, electroplating (in liquidation) and also the Malaguti Moto http://www.malaguti.com, with its 180 workers looks set to close later this year if it fails to be found on the market by the availability of a buyer.
Only in the Bologna district, according to union estimates, are several thousand jobs at risk for the decrease in this area. "
Stay Tuned the story of Malaguti is far from over..... We will likely get an email or phone call from another hedge fund shortly just in case 305-599-8993 ext 207.
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