Anyone else see this?Part I

Posted on Wed, May. 29, 2002

Tasco starts selling assets
Telescope maker squeezed by debt
BY PATRICK DANNER
[email protected]

Miramar-based Tasco Worldwide, an importer and distributor of binoculars and telescopes and once one of South Florida's largest privately owned businesses, began the process of liquidating on Tuesday.

Tasco tapped Miami accountant James S. Feltman to take control of the firm's assets and represent creditors' interests. The liquidation will be overseen by the Broward County Circuit Court.

The company, which controlled production of its merchandise by manufacturers in the Far East, had been searching for a buyer before selecting Feltman to oversee the sale of its assets.

''While the lenders were very cooperative, it wasn't able to find a buyer to preserve the company as a going concern,'' said Brian Gart, a Fort Lauderdale lawyer representing Tasco. He added it ''remains to be seen'' whether the company is sold intact or in pieces.

Gart said Tasco wasn't able to service the debt to its secured lenders, led by Heller Financial, after a dramatic drop-off in sales. Last year, Tasco went into default on the lending facility, which stands at about $30 million.

Tasco still has a couple of dozen employees on the payroll to assist with the liquidation, which is expected to run through September, Gart said. Two weeks ago, a company official said Tasco had about 70 employees.

Tasco ranks have been significantly thinned since company founder George Rosenfield sold the business in March 1996. At the time, it employed 160 in Miami-Dade County and as many as 40 in distribution in the state of Washington. Annual revenue was about $110 million when the sale closed, he said.

Reached Tuesday, Rosenfield lamented the demise of a business he started in 1954.

''The fact that this happened to a company I built from scratch, it is painful,'' Rosenfield said. ``But I can't control it. We had something we built that I was very proud of, and they blew it.''

Tasco officials couldn't be reached for comment. Tasco's largest shareholder is Rice Capital, a Houston-based mergers-and-acquisitions firm. Rice officials also couldn't be reached for comment.

In 1997, Tasco moved its headquarters to Miramar, where it occupies 48,000 square feet in the Miramar Park of Commerce. The facility handled repair and warranty work, some assembly and distribution.

The new ownership group ''lost that human touch,'' Rosenfield said. ``When you're selling merchandise, the most important thing you have is credibility with customers and resources. They started doing things that lost credibility.''

Among the companies interested in acquiring Tasco were Bushnell Corp. of Kansas and Meade Instruments of California, Rosenfield said. Gart added some of Tasco's suppliers expressed an interest in acquiring some of its assets.

Feltman was selected to oversee the sale of its assets, which include the company name, trademarks and intellectual property, according to Jerry Markowitz, a Miami lawyer representing Feltman. A similar proceeding was filed Tuesday in California for Celestron International, a telescope maker in which Tasco owns all the stock.

''There are a number of companies advised of the assignments who expressed serious interest in acquiring the companies,'' Markowitz said. ``We're reaching out to the people who have a continuing interest.''

Really disturbing, especially the bits about possible Meade interest. Nothing against Meade, but I think having two viable manufacturers is good for all of us. I have no idea if Celestron is able to stand alone or not at this point.

Any business types who know the hobby care to chime in?

Jim