Riot's parent company goes bankrupt

[frostie]

http://savannahcanoeandkayak.blogspot.c ... ation.html

Riot Kayaks operations continue as closure of Voodoo Technologies Inc. leaves investors and vendors $1.18 million in unpaid bills.

Riot Kayaks parent company Voodoo Technologies has closed its doors, leaving about 68 creditors unpaid and debts totalling $1.183 million dollars.

Riot Kayaks founder and president Jeff Rivest had previously moved Riot operations and production overseas, leaving just a skeletal staff at the Montreal office.
The Montreal office has since closed.

Key creditors left unpaid by Voodoo include the National Bank of Canada, $447,833, the Development Bank of Canada, $90,976, and RESO, a Montreal-based capital development fund, at $37,000. Because some of the government funding is secured, other creditors and investors are unlikely to see any money returned, with some in the high five figures. Many were likely surprised that the debt lies with Voodoo Technologies and not Riot Kayaks, which is still continuing to operate from overseas. The Riot web presence (www.teamriotkayaks.com) includes a recent redesign and daily updates, with no reference as of Feb. 8 to the bankruptcy or its change in operational status.

[Corran]

Basically the news I got yesterday (which is sort of confirmed by that news above) was:

Jeff has...um... pulled a fast one...on his creditors. He separated riot from voodoo, "acquired" riot for himself for nearly nothing, free and clear of debt, and left Voodoo to go belly up, making money in the process for himself as he took all riots/voodoos assets, and at the same time leaving the people who had backed him all this time out to dry.

Not really that hard to believe ;-)

For those not understanding "the parent company" there was in fact no such thing. I created Voodoo with Jeff simply out of need. When "watermark" and "confluence" were buying up companies, we needed to look big so we created Voodoo so we could have multiple lines - Riot, Azul, and Sun - and "appear" to be a big player. But in fact we always owned Voodoo 100% - Riot became simply one of the Voodoo brands. In recent years Azul and Sun were dropped and Riot was Voodoo's only line. Loans were made to Voodoo Technologies, as were checks, (rather than to Riot) but they were one and the same. It was just a meaningless shell. But, as you can see, this "shell" has been put to good use to pull a fast one on the people who backed him all these years through thick and thin.

I was getting all kinds of scowls yesterday in the National Bank of Canada, and I had to explain to them that I had nothing to do with Riot for 5 years now. You can imagine my discomfort in there until they understood I had nothing to do with this anymore. They are also my bank and I'm sure this reflects badly on me too even if I've been out for years.

Corran

[Ricks-Freestyle-Mind]

It's your fault Corran for leaving the scene...

Ony joking ;-)

[Chaucer]

This kind of "re-structuring" is only too common, sadly. It sometimes happens with the connivance of banks and accountants. Sometimes it is a sensible course of action to secure jobs, at other times it is just a cynical money grabbing opportunistic stunt.

The only way to stop this sort of thing happening is as follows.
Do not buy the product/service from the new company
Do not accept money/wages/contracts/sponsorship from the new company
Do not supply money/goods/services to the new company
Make sure that all your friends know what this company has done and black list it.

However this is more easily said than done. In fact it is almost impossible, which is why "rogue" businessmen keep on doing it.

[banzer]

Does that mean mean that Riot is in the Naughty Corner and we shouldn't buy their gear? Or would that just affect the distributors who are presumably innocent?

Having said which the new Magnum should last me another year...

[Mark R]

debts totalling $1.183 million dollars.

Good Heavens, you could buy Iceland for that.

[Mark R]

So Corran, out of interest ... why did you suddenly have to leave Riot?

[ianletton]

Does that mean mean that Riot is in the Naughty Corner and we shouldn't buy their gear? Or would that just affect the distributors who are presumably innocent?

Having said which the new Magnum should last me another year...

A YEAR!!!

F*** sake, mine lasted 4 days!!!

Got it replaced though so its all good.

[Adrian Shanahan]

So Corran, out of interest ... why did you suddenly have to leave Riot?

That was published some time back on Playak 20-04-2004

Corran, it was clear that you were gradually detaching yourself from Riot's daily business during the past couple of years. You were concentrating more on surfing, making videos etc. Still we know that deep within, your real passion is making provoking designs. Were you just waiting for a perfect opportunity to leave Riot or did this come as a total surprise to you as well?

Well, I never intended to leave. It was purely the fact that I have very solid ideas of how the business should be run, and what the focus should be. These conflicted greatly with my partner. In the beginning, all was well, and sales were great, image was great and we had both customer and dealer support. As the business grew, I had less time to oversee all aspects, and I concentrated on the design, and the "business and marketing" became progressively out of my hands. Along with this, was a slow but obvious decline in sales, and general image. You'll remember even on Playak how every year for years riot was voted the most innovative and cool company. Within a year of my not heading up the Marketing and business efforts, we no longer were considered that. Then, my partner started to meddle in designs too, telling me how and what to design, and the boats went from innovative and great, to cookie cutter "just like every other kayak in that class". Yes, good designs, fun designs, which every company needs, but nothing like what I could have produced given my way.

Finally I got the shits, and we broke up. Not a divorce, but a rethink. Since we could no longer operate this way, someone had to leave. Jeff had the money, and most of the company. I didn't. So I was the one that had to leave. And so I left the company, but kept my shares and worked as a contract designer for 2 years, but I had absolutely no decision making ability, and things just got worse and worse. I realized that without my decision making control, the company, and therefore my own reputation, was doomed.

And since then: everywhere I turned they were making business decisions that I felt deep down were wrong, and then last year I realized that I had two choices: Cut my losses and leave while I still could, or come back in with more influence than in the last three years. They wouldn't have the latter, so my choice was made for me.

When exactly did you leave Riot then? Looks like that was a while back already and the world just didn't know.

Yeah, January 2001 is when I left the company. They still hired me to produce ads, and sometimes I got to do what I wanted (the sheep and wolf ad) and sometimes I didn't. I was contracted to design 3 boats a year and still "act" like I was just as involved as before, but I wasn't and it's quite easy to see the slide after I left. The contract was for 2 years, and when it became time to re-negotiate, I made it clear that several new things would be necessary, one of which was absolute control over the design process. I was de facto declined. So that was the end of it. I don't want to go into details because I'm not at all bitter, and I wish Riot the best of luck. Most of the people there are my friends, including my ex partner-Jeff, and they all deserve to make a good living and be successful. But I just didn't want to be associated with the company anymore because it was no longer a representative of my dreams and philosophy.

Anyway, we all still talk and chat and go out. It was important to leave as mates because I live in the same town and we're going to see a lot of each other, just not in business. But I have totally sold out now and no longer have anything to do with Riot Kayaks at all.

[buck197]

Good Heavens, you could buy Iceland for that.

Wow that is an awful lot of frozen peas.

Oh not that Iceland!!!

[Corran]

So Corran, out of interest ... why did you suddenly have to leave Riot?

Ha ha... um... lets just leave that alone. The "politically correct" version is in the playak interview. That pretty much says it all.

I've moved on, and are sowing greener pastures now, so I'm stoked. All dark clouds have a silver lining... in my case, a golden one. So I'm really happy things turned out the way they did. I got to learn Italian and work in italy, I have a booming surfboard company, I'm heavily involved in ecological projects and none of this would have happened if everything ad been rosy at Riot.

I really hope they can salvage something there for everyone.

Corran

[sherlock home]

LOL!!! we have been working with Corran as ex-Staff's of Riot and Fisher was way out the field in is free comments.... I will not go on more deep about SUPER Steve the Fisherman ( in a way of fisherman.. for sponsership) but Corran was the back bone of our companie and in anyway he was out of line..... Respectfull for us and the idea's of what should be a real time cool comp... So pls, let's not feed on Steve or Riot Rep going around and dog him down because someone somewhere have screw alot's out!!!!! Steve was good in is years and now some young stud are way much BETTER then him...is this a crime???

We can imagines from one day to another our bank manager calling us and telling us that there is no more CASH for fun... no more free boats..no more free rides, no more caravan pay free, no more free meals or party's, no more free of anything!!!!

Hummmm.......enought to get a 12 gauge and shoot on everything that move....lol

I know Steve personnaly..so pls give a breack to Corran......

[Jones Chris]

LOL!!! we have been working with Corran as ex-Staff's of Riot and Fisher was way out the field in is free comments.... I will not go on more deep about SUPER Steve the Fisherman ( in a way of fisherman.. for sponsership) but Corran was the back bone of our companie and in anyway he was out of line..... Respectfull for us and the idea's of what should be a real time cool comp... So pls, let's not feed on Steve or Riot Rep going around and dog him down because someone somewhere have screw alot's out!!!!! Steve was good in is years and now some young stud are way much BETTER then him...is this a crime???

We can imagines from one day to another our bank manager calling us and telling us that there is no more CASH for fun... no more free boats..no more free rides, no more caravan pay free, no more free meals or party's, no more free of anything!!!!

Hummmm.......enought to get a 12 gauge and shoot on everything that move....lol

I know Steve personnaly..so pls give a breack to Corran......

Am I alone in thinking - "Huh?"

Chris

[Mark R]

Am I alone in thinking - "Huh?"

No, I also didn't understand a word of that.

[lennart]

If I Read his (assuming that this and that sherlock holme are the same) posts on playak correct. He is a ex empolyee of riot. I cannot follow him here and on the playak site.
Although he has posted some things on playak what I could understand.

http://playak.com/index.php?option=com_ ... &catid=105

I hope for all involved that things become clear..

[frostie]

http://translate.google.com/translate?l ... moules.php