Music gear maker Groove Tubes is closing after nearly 30 years
The San Fernando manufacturer, which was sold to industry giant Fender Musical Instrument Corp. in June, is closing its inventory sale Saturday.
In August, Groove Tube operations moved into Fender facilities in Ontario, Calif., and Scottsdale, Ariz., while production moved to a factory in Mexico. Citing a nondisclosure agreement, Pittman would only say that Groove Tubes sold for 10 times its annual earnings.
A former Guitar Center store manager, the 60-year-old Pittman started Groove Tubes in 1979.
"Groove Tubes built up a name as the only U.S. manufacturer-distributor of good quality tubes," Ringwald said. "Nobody else could really come in and build their own facility and compete with that."
But of Groove Tube's roughly 35 employees, very few were given spots at Fender, leaving others, including sales manager Benson and Kathi Kostick, without jobs.
"It was time for Aspen to move on, but it's just hard for the people who worked here for years," said Kostick, office manager for three years. "So many companies are laying off people now."
A Fender spokesman declined to comment.
http://www.latimes.com/business/la-fi-tubes8-2008nov08,0,7997574.story
The San Fernando manufacturer, which was sold to industry giant Fender Musical Instrument Corp. in June, is closing its inventory sale Saturday.
In August, Groove Tube operations moved into Fender facilities in Ontario, Calif., and Scottsdale, Ariz., while production moved to a factory in Mexico. Citing a nondisclosure agreement, Pittman would only say that Groove Tubes sold for 10 times its annual earnings.
A former Guitar Center store manager, the 60-year-old Pittman started Groove Tubes in 1979.
"Groove Tubes built up a name as the only U.S. manufacturer-distributor of good quality tubes," Ringwald said. "Nobody else could really come in and build their own facility and compete with that."
But of Groove Tube's roughly 35 employees, very few were given spots at Fender, leaving others, including sales manager Benson and Kathi Kostick, without jobs.
"It was time for Aspen to move on, but it's just hard for the people who worked here for years," said Kostick, office manager for three years. "So many companies are laying off people now."
A Fender spokesman declined to comment.
http://www.latimes.com/business/la-fi-tubes8-2008nov08,0,7997574.story
