Thread Number: 21400
TTI Now Owns Oreck |
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Post# 239433   7/8/2013 at 22:41 (3,944 days old) by bagintheback (Flagstaff, Arizona)   |   | |
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Not too thrilled about this. I hope they have some decency and keep the uprights made in America.
The founding family behind Oreck Corp. has lost its bid to buy the company out of bankruptcy protection. In a statement released tonight, company officials announced that Royal Appliance Manufacturing Company – which already owns vacuum giant Hoover – submitted the winning bid during Monday’s bankruptcy auction. “(Royal) was the winning bidder of the auction of the company following its Chapter 11 bankruptcy filing,” according to a statement. “Royal's intention, subject to court approval at a hearing scheduled July 16, is to close the transaction (on) July 24." Financial details of the winning bid were not released. The Oreck family had originally submitted a “stalking horse” bid of $23 million at the beginning of the bankruptcy process. The family’s effort, led by former CEO Thomas Oreck, was aimed at keeping the company’s manufacturing jobs in the United States. The company has more than 200 employees at a manufacturing facility in Cookeville, Tenn., along with several dozen corporate employees in Nashville. The company also employs several hundred workers at Oreck retail locations across the country. There was no immediate work on what the deal would mean for Oreck employees. Oreck, a vacuum cleaner and home-care products company, filed a Chapter 11 reorganization petition on May 6. The company was founded 50 years ago by David Oreck, who became a household name by appearing on the company’s infomercials that were a staple of television advertising for years. The company had previously been based in New Orleans, La., but moved north following Hurricane Katrina. CLICK HERE TO GO TO bagintheback's LINK |
Post# 239436 , Reply# 1   7/9/2013 at 00:37 (3,944 days old) by NYCWriter (New York City)   |   | |
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Post# 239437 , Reply# 2   7/9/2013 at 00:50 (3,944 days old) by tylerawells (-)   |   | |
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Sadly, I agree with you Matt. I doubt the company will be close to anything it is today in a years time. I don't even want to think about the kind of things they're going to stick the Oreck name on. |
Post# 239440 , Reply# 3   7/9/2013 at 04:26 (3,944 days old) by jmurray01 (Scotland)   |   | |
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Post# 239441 , Reply# 4   7/9/2013 at 05:14 (3,944 days old) by tolivac (Greenville,NC)   |   | |
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Another sad day for vacuum cleaners-TTI will mean the kiss of death for Oreck.There goes another US vacuum maker.Guess it will all go to China.Now older US made Oreck vacuums will be prized! |
Post# 239451 , Reply# 5   7/9/2013 at 08:56 (3,943 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)   |   | |
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Never say never - I mean, though the vacuums may be made in China, perhaps TTI will allow Oreck to keep design in the U.S - that's effectively how the Vax Mach Air came about since it was designed in the UK before being made in China. Dependent on what factory Oreck has, TTI may well decide to keep a manufacturing base alive. It really depends on what they will do with the company.
However I have just found a late report from MSN suggesting that the downfall of Oreck were down to a number of things: 1) "...The direct sales model wasn't working. Where do you go to buy a vacuum? Wal-Mart (WMT +0.69%) or Target (TGT +0.80%), perhaps? Maybe Amazon.com (AMZN -0.20%)? Not enough people thought about going to an Oreck store or calling the company directly..." 2) "...The company didn't jump on bagless technology. Shoppers have been hot for bagless vacuums for years, especially after Britiain's James Dyson unveiled his popular line in the U.S. in 2002. It took more than a decade for Oreck to embrace bagless technology..." 3) "...It clung to infomercials for too long. Oreck needed to modernize its advertising and marketing strategies, but it inexplicably stuck with late-night infomercials for a long time..." 4) "...It looked like your grandma's vacuum. Oreck's designs were boxy and out of date. Only recently has the company unveiled sleeker, more modern models...." I don't think I have read such a poorly misled report from MSN before though - citing that brand's downfall on the way a model looks is pathetic - I mean, Kirby uprights are hardly modern looking, yet they are built to last, same with SEBO's X uprights/ Windsor, same with others. None of those brands offer bagless either, which isn't a big downfall for a company who produce vacuums. The advertising maybe has a clue as to why market saturation for Oreck products may be low, but I don't think that's a big issue, either- I mean, some other brands don't have huge advertising either but go on reliability, performance and efficiency with other means of promotion. I think it would be at loss not to have Oreck uprights on the market; clearly the launch of the bagless uprights earlier this year was probably down to market pressure and to show that Oreck could produce a bagless model. However, their core market has always been bagged vacuums - it would be sad to see another bagged brand fall by the wayside, regardless of whether I personally like them or not - having had an Oreck, I know of the pros and cons but they have to be admired for the fact that they use bags to capture the dust, regardless of the problems I had with mine. CLICK HERE TO GO TO sebo_fan's LINK |
Post# 239457 , Reply# 6   7/9/2013 at 09:14 (3,943 days old) by jmurray01 (Scotland)   |   | |
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I can't believe my eyes - their downfall was because of the design and the fact they didn't immediately run to the drawing board to produce a bagless model?
What utter rubbish. If that were true, then why are Kirby and Numatic still successful brands? They look far from modern (the former moreso than the latter) and neither have, or have ever had a bagless model. I don't know who wrote that article but they should be sacked. |
Post# 239462 , Reply# 7   7/9/2013 at 09:56 (3,943 days old) by gsheen (Cape Town South Africa)   |   | |
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Personally never cared to much for Oreck, You can't compare oreck to Kirby or Numatic, Numatic sells because of cleaning company's you see it at work and so you want one at home. The best thing Numatic ever did was the face. Its there signature.
Kirby is a massive heavy duty vacuum, In the time we had Orecks in SA all they did was break and shatter. I am not a fan of Kirby either but lets be honest here its a vacuum cleaner that will last years. I think the article has some good points, They should have redesigned there look, even if they stuck wit bags they needed on board tools and some convenience to make it interesting. Just because we as collectors like it does not make it a viable selling vacuum. If it can't sell then its dead in the water. Case in point I love upright vacuums, and hate cylinder vacuums But if I only sold upright vacuums I would go out of business. Consumers speak and they did in the case of Oreck now we will have to see what happens to them. Does anyone know what the tie between oreck and Ivac of Netherlands is, Ivac produces the fast brand of Vacuums and I see on their website they have something to do with Oreck too |
Post# 239463 , Reply# 8   7/9/2013 at 09:59 (3,943 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)   |   | |
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Post# 239464 , Reply# 9   7/9/2013 at 10:10 (3,943 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)   |   | |
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Post# 239466 , Reply# 10   7/9/2013 at 10:23 (3,943 days old) by Turbo500 (West Yorkshire, UK)   |   | |
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Slightly off topic, but TTI can hardly be held responsible for the downfall of Hoover. Hoover shot themselves in the foot with free flights, which forced them to sell as they were going bankrupt. The Hoover Cleaner, as we all know and love it, ceased to exist as soon as Candy took over.
It's also important to note that Hoover Europe cleaners are not made by TTI, they are made by Candy. Hence Hoover US machines cannot be branded Hoover in the UK, they are instead branded "Vax". |
Post# 239467 , Reply# 11   7/9/2013 at 10:27 (3,943 days old) by Turbo500 (West Yorkshire, UK)   |   | |
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Now, back on topic...
I am by no means an Oreck fan and always viewed them as an overpriced, glorified carpet sweeper. I've also found David Oreck's fame as the "inventor" to be a big fat lie, as he bought an old design from Whirlpool (previously sold as the MacDonald Electric in the UK) - he did not invent the cleaner at all. However, this is a blow to the US economy and another brand swallowed up by a Chinese giant and for that, I am very sorry to see them go. They deffinitley had a market, both commercial and domestic, and are certainly iconic in design. They were also very reliable and well made, despite their questionable performance. So to see a reputable, reliable brand go to TTI is quite sad indeed! |
Post# 239468 , Reply# 12   7/9/2013 at 10:35 (3,943 days old) by ncovert (Grove City, PA)   |   | |
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Another Chinese company sucks up an American company (no pun intended.) Now TTI owns Royal, Dirt Devil, Hoover, and Oreck.
I wonder what company is next? Anything but Kirby!! |
Post# 239481 , Reply# 13   7/9/2013 at 11:32 (3,943 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)   |   | |
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Actually Chris, that's not quite accurate regarding TTI & Candy.
There have been a few instances where Hoover Europe have brought over Hoover/Dirt Devil U.S models in recent years. Lets not forget TTI took control of Hoover U.S in 2006. The Freejet stick vacuum was originally designed and produced by Dirt Devil which you'll be aware was thereafter part of the TTI deal. Thus, Hoover Europe marketed the Freejet and other selected models from the Dirt Devil empire before and after TTI took over both Dirt Devil U.S and Hoover U.S,. Hoover Europe still import the Freejet and the Freejet Plus models today. Hoover U.S did sell a Hoover Europe canister vacuum in the form of the Morphy Richards based "Studio" bagged cylinder vacuum, a model I believe is still showing on the U.S website, the S1361. I had a red Studio model for a time and found it to be a highly efficient and well made budget bagged cylinder vac. CLICK HERE TO GO TO sebo_fan's LINK |
Post# 239485 , Reply# 14   7/9/2013 at 12:03 (3,943 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)   |   | |
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Post# 239489 , Reply# 15   7/9/2013 at 13:30 (3,943 days old) by Turbo500 (West Yorkshire, UK)   |   | |
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Hi Ryan,
Ah, thanks for the input there, much appreciated! Those Studio cleaners have been branded allsorts - I have a Goblin Ace 1300 which is the same cleaner. There was another Hoover variant of it too, but I can't recall what it was called. It was pale yellow and I think it just said "1300" on it. I know it was branded as Goblin Ace, Morphy Richards Jazz & Compact, JMB, Hoover, Vax Mojo, and Dirt Devil. Not bad cleaners though, especially considering what you'd get for the price these days. |
Post# 239492 , Reply# 16   7/9/2013 at 13:57 (3,943 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)   |   | |
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TTI laid off 150 workers in the El Paso Plant, reducing the workforce there to nearly half. But, TTI reports their biggest profit year.
I was told a while back, that the Convertible was coming back. I was also told the lots of jobs were coming back.... to El Paso. It seems that there has been a shift. hmmmmmmmmm |
Post# 239498 , Reply# 17   7/9/2013 at 14:56 (3,943 days old) by jmurray01 (Scotland)   |   | |
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I know what you mean John - things could have been so different had that not happened and Hoover had still been owned by the Hoover family.
But unfortunately it did happen and we have to live with the consequenses. I do think though that at some point Hoover would have been sold to a bigger corporation, as when you think about it - if "the Hoovers" were really interested in keeping the company within the family, they wouldn't have sold it in the first place (even if it meant filing Chapter 11 and starting again), but they did, so I think it would have gone at some point. |
Post# 239505 , Reply# 18   7/9/2013 at 15:17 (3,943 days old) by KirbyClassicIII (Milwaukie, Oregon)   |   | |
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Post# 239516 , Reply# 20   7/9/2013 at 16:11 (3,943 days old) by KirbyClassicIII (Milwaukie, Oregon)   |   | |
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Post# 239517 , Reply# 21   7/9/2013 at 16:22 (3,943 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)   |   | |
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Post# 239522 , Reply# 22   7/9/2013 at 16:28 (3,943 days old) by jmurray01 (Scotland)   |   | |
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Post# 239527 , Reply# 23   7/9/2013 at 18:03 (3,943 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)   |   | |
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As sure as you were when you said the Turbo Power would disappear off Hoover UK's website? Still there by the looks of it.
Looking at Royal vacuums US website, are there any bagless uprights on there? Doesn't appear to be any - there is a bagless hand held based on the current Dirt Devil hand held and of course the TTI cordless windtunnel stick vac. The rest of the uprights are all bagged, soft bag heavy style ones and hardbox plastic uprights. Thus, it is clear to see that by the website alone also backed by TTI that Royal have yet to go down that bagless upright route. Even if TTI do that to Oreck, I'm sure buyers will be offered bagged uprights - TTI wouldn't waste the opportunity to make money off bags and filters alone. CLICK HERE TO GO TO sebo_fan's LINK |
Post# 239529 , Reply# 24   7/9/2013 at 18:32 (3,943 days old) by daknx1994 (Southern Indiana)   |   | |
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Wow I wasn't expecting to hear this today. There is always hope that jobs in Tennessee will not be lost and moved to China. Just trying to stay positive as I would hate to see all those people lose those jobs. |
Post# 239530 , Reply# 25   7/9/2013 at 18:33 (3,943 days old) by daknx1994 (Southern Indiana)   |   | |
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I agree with sebo_fan that there will probably still be bagged Orecks as vacuum companies make a good deal of their profit off of the bags and filters. |
Post# 239550 , Reply# 26   7/9/2013 at 22:37 (3,943 days old) by KirbyClassicIII (Milwaukie, Oregon)   |   | |
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Post# 239554 , Reply# 27   7/9/2013 at 23:10 (3,943 days old) by dysonman1 (the county)   |   | |
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Post# 239583 , Reply# 28   7/10/2013 at 06:32 (3,943 days old) by jmurray01 (Scotland)   |   | |
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Post# 239598 , Reply# 29   7/10/2013 at 10:30 (3,942 days old) by bagintheback (Flagstaff, Arizona)   |   | |
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Tom Oreck said he also understands that Royal plans to keep the company’s manufacturing plant in Cookeville, which has more than 200 employees. “I’ve been told they intend to continue to operate the plant and even to expand it,” he said. What’s still in doubt, though, is the fate of the 90 employees at the company’s headquarters in Nashville, as well as hundreds of workers at company-owned and franchised Oreck sales and service centers across the country, Tom Oreck said. “In speaking with (the Royal people) after the auction, I really do think that they recognize that the Oreck customer and the brand are different (from Hoover) and that the infrastructure is there to support the customer,” he said. “They are smartbusiness people, so they should be able to figure it out.” A Royal spokeswoman did not return calls on Tuesday. CLICK HERE TO GO TO bagintheback's LINK |
Post# 239633 , Reply# 30   7/10/2013 at 13:12 (3,942 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)   |   | |
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Maybe in the UK, buyers buy copy bags but its not a common thread globally where the Oreck brand sell in.
Buyers can buy what they want but you don't get "generic high filtration" copy dust bags in the same way that Oreck produce them. They used to offer three to four different types when I had my Oreck XL all those years ago. Another aspect of Oreck that I personally would see sorry to go are their air purifiers. I know that some owners have had bad results from them but I lived in a flat in Edinburgh near a factory where the home had two Oreck purifiers and I found them to be largely excellent. TTI could develop that further as well. |
Post# 239637 , Reply# 31   7/10/2013 at 13:15 (3,942 days old) by gottahaveahoove (Pittston, Pennsylvania, 18640)   |   | |
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Post# 239705 , Reply# 32   7/10/2013 at 18:11 (3,942 days old) by daknx1994 (Southern Indiana)   |   | |
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I hope that they stay to their word and keep the plant here in the States. I hope they don't stop selling in the service centers. I love going into them as they are always nice and very friendly and they always have what I need. This is a good thing to hear though. |
Post# 239738 , Reply# 33   7/10/2013 at 20:40 (3,942 days old) by Vac_whisperer ()   |   | |
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This bugs me. Too many great conpanies have been bought out by TTI and ruined. Whos next? Kirby? Were in what i like to call the "TTI Armageddon". |
Post# 239739 , Reply# 34   7/10/2013 at 20:40 (3,942 days old) by Vac_whisperer ()   |   | |
This post has been removed by the member who posted it. |
Post# 239930 , Reply# 36   7/12/2013 at 21:43 (3,940 days old) by kirbyvertibles (Independence, KS)   |   | |
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Post# 259613 , Reply# 39   12/15/2013 at 15:39 (3,784 days old) by director12 ()   |   | |
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I heard years back Oreck scored the worst for deep-cleaning. |
Post# 259617 , Reply# 40   12/15/2013 at 15:54 (3,784 days old) by sebo_fan (Scotland, UK, member AKA ukvacfan, & Nar2)   |   | |
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