World famous actor calls surf journalist to
account!
Do you recall last Friday when Zach Weisberg of
The Inertia finally admitted to what everyone in the world
has long believed? Of course you do! He stood on his tiny little
soapbox and declared, “I have sucked my entire
life!”
Oh how I felt invigorated when I read those six simple words.
Vindicated too.
Zach was also talking about using straws and how it is very bad
for the environment because straws are generally made of plastic,
go into the ocean and kill… fish. He had actually hitched his tiny
little cart to that of actor Adrian Grenier who is the UN
environmental ambassador and is imploring people to
#stopsucking.
Some 500 million straws are used each day and many end up in the
ocean killing… coral. If we all stopped using straws entirely it
would be a very good thing. Find much more valuable information right here.
Anyhow, in my story celebrating Zach Weisberg’s admission I also
celebrated Adrian Grenier’s and wrote about how I found him
unbelievable as a major Hollywood star in HBO’s Entourage and hate
watched every episode because I thought the character he played,
Vinny Chase, sucked horribly.
Well, Adrian must be a BeachGrit reader because early
yesterday morning he reached out via Twitter and wrote:
Yeah Chas, you talk big talk but do you still suck?!
#STOPSUCKING. That’d be a headline…
And while we generally don’t use hashtags in our headlines here,
only exclamation points and colons, I thought to myself… “The man
has got a point!”
So there you go, Adrian! Do you like?
But also I feel bad for being rude. Vinnie Chase is not you and
that character should be disliked because isn’t he a
version of Mark Wahlberg? So you actually played it very well.
While I have you, though, I didn’t like how your character Nate
broke up with Anne Hathaway’s Andrea in The Devil Wears
Prada. It felt as if Nate was putting his own career goals
(being a chef) ahead of Andrea’s newfound fashion passion. I
know that she changed her ideals, drastically even, but
shouldn’t we all be allowed to grow?
One more thing. I haven’t sucked for the last decade plus
because if I’m not drinking water or coffee then I am drinking
booze and the film Crazy, Stupid, Love put me off ever
drinking booze from a straw again. In fact, I think you should
license that scene for your #stopsucking campaign. It will be way
more effective than talking about dead fish and coral.
Oh forgive the lateness on this reporting. I
was flying back from Mexico yesterday etc. etc. and feel very badly
for not being first to market on the revelation that the World Surf
League just completed purchase of the Titans of Maverick event and
got it for a song.
1/2 price!
Jake Howard of Stab beat me to this punch though his
write up is boring seeing as he didn’t defame any
fathers of young big wave surfers. There wasn’t even
any high horse moralism. A total bummer.
So allow me to take over!
The WSL just agreed to purchase the permits for the Mavericks
contest from Griffin Guess, the owner of Titans of Mavericks, and
for 1/2 price.
The WSL just bought it for $525,000.00 and is going to return it
to the Big Wave Tour fold. And you think so what, right?
Well you are wrong!
The San Jose Mercury News buries a plot twist in their coverage.
Griffin Guess is keeping the name Titans of
Mavericks so he can turn it into a siiiiiiiiick clothing label.
Hell yeah!
Titans of Maverick!
Sickest new brand out HMB! (Half Moon Bay)
Who do you think it should sponsor? How many t-shirts will you
buy?
And other funny things in collapsed online
retailer's annual reports…
A BeachGrit reader raised a very good point
last night. Why do we give only a cursory coverage to the
SurfStitch slow-motion collapse and leave newspaper biz writers to
lick the sweetest meat off the bone?
Is it laziness or an ineptitude when it comes to understanding
the machinations of business?
A little of the former, mostly the latter.
This morning, therefore, I examined the two annual reports of
the SurfStitch Group since it went public in late 2014.
And, oowee, the magic contained within.
Did you know, for instance, that in the 2016 financial year,
SurfStitch made two ten-year agreements with Coastalwatch and its
various companies whereupon “Coastalwatch would provide a link on
its website to SurfStitch Group’s Australian website for a fee of
$8 million”
Read that again.
Eight mill for a website link.
I’m not an independent valuer but eight mill would buy the
entire Coastalwatch website, with substantial change, no?
The series of agreements with SurfStitch and Coastalwatch (and
Three Crowns Investments and Coastalcoms) were so odd, at least to
the layman’s eyes, it hardly seems surprising they now form part of
a legal battle.
Here are the agreements, millions being tossed back and
forth.
the content of SurfStitch Group’s media assets was licensed to
Coastalwatch for a licence fee of approximately $20.3 million,
receivable by the Group in April 2016;
TCI gave SurfStitch Group branding rights to certain of TCI’s
apps for a term of ten years for a fee of $2 million, payable in
February 2016 by SurfStitch Group to TCI, plus TCI acquired rights
to advertise and distribute its brands on SurfStitch Group’s
platforms (for 15% of the recommended retail price plus additional
fees) for a period of ten years.
And there’s the eight mill for a link on the Coastalwatch
website.
In summary, Coastalwatch and the others would pay twenty mill to
SurfStitch over ten years and roughly the same amount (US$9.7
million plus $10.5 million) would be paid by SurfStitch to
Coastalwatch and co over the same period.
Do you get business? Why the money-go-round?
Yesterday, SurfStitch’s “failed acquisition strategy” was blamed
for its current woes.
Again, examining the financial reports we see that Garage
Entertainment, which has since been sold, was bought in 2015 for
two-and-a-half mill in cash and almost eleven mill in shares
(that’s when shares traded at $1.91 apiece. If trading hadn’t been
subsequently halted and the company put into administration the
shares at seven cents would be worth 750k.)
Stab magazine aka Rollingyouth was bought in May 2015 for “cash
consideration of $2,263,000.” At the time of sale, the company
carried 774k in assets (including 20 grand in the bank) and 491k in
liabilities.
Magic Seaweed was bought at the same time for eight-and-a-half
mill.
What else was in there?
Co-founder Lex Pedersen ain’t exactly on the bones of his ass.
His base salary for 2016 was $634,656 and various other bits and
pieces for a total of $854,139.
And, now, of course, the whole damn thing is in administration
and shareholders face ruin.
Chapter 3: Or when Sam George rides in and saves
the day.
(I am writing a series about Yemen because what is currently
happening there is terrible beyond. My inaction disgusts me and so
I am going to introduce you to to the country because… the place,
people, culture all deserve to be saved. We’ll get into the meat
next but just one more meander about how we all actually got to
Yemen in the first place…)
My best friend, J., and I both surfed albeit poorly. I had grown
up in coastal Oregon. He had grown up in rural Minnesota. But
still. Once surfing truly enters a life, maybe even especially
coastal Oregonian and rural Minnesotan lives, it reorients most
things. Where to live, where to go to school, when to… not work and
where to travel. And after 9/11 all I wanted to do was travel to
Yemen and surf.
We didn’t know anything about the coastline other than what we
could piece together from old maps and rare Internet posts. It
seemed surfers, or windsurfers at least, had been to the island of
Soqotra that hovered closer to Somalia than Yemen but information
on the mainland was limited at best. J. had a penchant for ancient
Islamic trade routes and could account for the country’s booming
11th century frankincense markets and what the British
living in Aden during the 18th century thought about the
southern Yemeni diet but nothing about surfing. It appeared Duke
Kahanamoku didn’t make it that far on his “share surfing with the
world” tour.
And so I concluded that no one had ever surfed the mainland. But
how to know for sure?
The answer, like everything surf in the early aughts, was to
call Sam George.
He of the golden bouffant and single earring. He married to
surfing’s ultimate crush (Nia Peeples from North Shore). He the
gatekeeper to all that mattered. He the Editor-in-Chief of
Surfer magazine.
Back then surf media didn’t attract the low-lives and has-beens
of today, or so it appeared. Sam George was a towering monument to
earthly success, he of the linen shirt/pant/unstructured jacket
combo, he of the white Ferrari Testarossa.
I don’t know that he actually drove a Testarossa but it
in my Oregonian mind he did and I figured it worth a shot to
contact him, tell him that I was going to surf Yemen’s mainland and
ask if Surfer wanted the story.
I had never written anything in my life.
We had no idea if we could even get visas to Yemen much less
travel the country.
But my operating principle since birth had been “it’s easier to
ask forgiveness than permission” which is a close relative of
“shoot first, question later” so I sent an email that I wish I
still had. I’m certain it was filled with pompous grandiosity and
ridiculous assertions. I’m certain it would be the pièce de
résistance in the Asshole Museum.
Yet somehow it worked.
At first Sam George tried to push taking professional surfers
with us. We told him it was too dangerous and he somehow demurred.
We then told him that we needed the money up front and somehow he
agreed. A few weeks later I had a crisp check from Surfer
magazine in my hands for $2000.00.
Sam George responded that he was interested in hearing more
about this adventure and J. and I were invited down to
Surfer’s offices which were then in Laguna Beach, I think,
or somewhere weird. There we met with the surf icon and he was
everything I dreamed he would be. Vivacious white smile, tan chest
peeking through a casually unbuttoned Hawaiian shirt. I don’t
remember much from that day other than that and Sam’s single
earring, J. spinning on about ancient trade routes and Sam telling
us that, to his knowledge, no one had ever surfed mainland Yemen
and that he would be happy to run a feature if we dare attempt. At
first he tried to push taking professional surfers with us. We told
him it was too dangerous and he somehow demurred. We then told him
that we needed the money up front and somehow he agreed. A few
weeks later I had a crisp check from Surfer magazine in my
hands for $2000.00.
Never before had I felt so high.
J. hurried up and applied for an Arabic language scholarship
from UCLA. He promised them he would go to a school in the capital
Sana’a and study Yemen’s enviously pure strain of Arabic and they
gave him $3,000.00.
But now we were also really stuck. $2000.00 was a small fortune
but not quite enough for a three month traverse of Yemen. That’s
how long we decided we needed. Three months. J. hurried up and
applied for an Arabic language scholarship from UCLA. He promised
them he would go to a school in the capital Sana’a and study
Yemen’s enviously pure strain of Arabic and they gave him
$3,000.00. And we were rich beyond our wildest dreams but still had
no idea about how to actually get to Yemen so called our friend
N.
N. was American but had grown up in Bolivia and possessed a sort
of heads down dogmatism when it came to absurd ideas. He was happy
to join up even though he had never surfed a day in his life,
Bolivia being South America’s only landlocked country etc. And so
he began searching Yemeni companies on the Internet and emailing
the given contact, explaining that now three intrepid explorers
were going to come and Make Yemen Great Again by surfing almost
passably on their virgin waves.
And a man by the name of H. responded.
H. was, from what we could tell, the son of Yemen’s ex-prime
minister. He had gone to university in America, split time between
Dubai, Cairo and Sana’a, had multiple business in Yemen and had an
easy manner over email, just telling us to show up and we would be
taken care of. I can’t recall what N. promised in return but I
think at this point we were relatively honest and thought surfing
was simply the best thing ever and to do it in Yemen would be the
best thing ever and not just for us. Surf tourism etc. Relatively
honest and ridiculously naïve.
H. didn’t seem like he cared about what we had to offer, anyhow,
and just seemed intrigued by the harebrained-ness.
And like that we were set.
Except that none of us had a camera or took pictures.
Shareholders "likely to face complete loss on their
investment."
How do you solve the problem of a biz built on what is
essentially a solid foundation but ruined by a “failed
acquisition strategy” and facing various law suits and an
investigation by the Australian Securities and Investment
Commission?
Hoist a white flag and call in the administrators. It’s a way a
company like SurfStitch that ain’t doin’ so well, maybe it has a
viable biz but needs a little time to steady the ship, can keep
creditors at bay while an administrator works out what the hell it
should do, if it’s viable and so forth.
Although, as reported today by The Australian,
“The long-troubled surf and sports
products online retailer SurfStitch has collapsed into voluntary
administration, ending the public life of one of the worst floats
on the market in recent years, leaving its shareholders likely
facing a complete loss on their investment.
“SurfStitch has the ignominy of being
one of the worst performing floats in recent times. Set at an IPO
price of $1 when the company floated in late 2014, the shares soon
crashed following a string of profit warnings, class action law
suits, failed acquisition strategy and then the shock loss of one
of its co-founders and co-chief executives Justin Cameron soon
after its float.
“The long-troubled surf and sports products online retailer
SurfStitch has collapsed into voluntary administration, ending the
public life of one of the worst floats on the market in recent
years, leaving its shareholders likely facing a complete loss on
their investment.”
“The cracks started to show in
SurfStitch soon after it floated on the ASX, with the company
plunged into turmoil in March 2016 when Mr Cameron quit via a
one-line email to the board, as he joined forces with a private
equity firm to launch a possible takeover of the group. SurfStitch,
led then by chairman Howard McDonald, had been scrambling since to
regroup executives and integrate the businesses that SurfStitch
bought up since its $83m float in late 2014.
“In 2015, SurfStitch kicked off an
acquisition spree, as it extended its reach beyond online retailing
of surf and sports goods – which was its original business model –
to buy up a host of other companies. SurfStitch paid $23.7m for
specialist global water board distributor Surf Hardware
International and prior to that paid $21m for Stab, a leading
online surf content platform, and surf forecasting network
Magicseaweed. It also bought Garage Entertainment and Production
for $15m.
“Many of those deals failed to
deliver the returns SurfStitch had hoped for.”
“Earlier this year, law firm Quinn
Emanuel filed an open class action in the Supreme Court of
Queensland for anyone who bought or held shares between August 27,
2015, and June 8 last year included in the litigation. It
represents a potential $100m lawsuit.
“The plaintiffs allege Surfstitch was
trading at a loss in August 2015 but announced that it was
expecting EBITDA to double in the 2016 full-year. Surfstitch
allegedly covered up the loss by entering a series of copyright
licensing deals with surf technology group Coastalwatch and Three
Crown Investments.”
A meeting on September 5 will update shareholders on the
progress of the administration and what sorta cut they might get
out of their seven cent shares.
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Jon Pyzel and Matt Biolos by
@theneedforshutterspeed/Step Bros