BusBank files for Chapter 11
It would seem Global Charter Services Ltd (aka BusBank) thought it was a real bank and has followed some of the worlds great and the good in the financial sector. News reaches us that BusBank has filed for Chapter 11. Their website still seems to be up and running but they haven’t posted on their blog since 24th April 2009 (they used to post very regularly) – so maybe its been in place a while and its been a long time coming.
They have between 200 to 999 creditors with total liabilities between $1m and $10m. Seems like they also owe Coach USA $1m and plenty of operators between $35k and $90k each. Ouch!
Someone has kindly uploaded the chapter 11 documents here for us.
If you have a story to tell about BusBank and its filing for Chapter 11 we would be interested to hear it. Share it with our readers in the comments section below.
Dean
Tags: Bankruptcy, bus charter, BusBank, busrates.com, chapter 11, Coach USA $1m, motorcoach
September 5th, 2009 at 1:37 pm
My sympathizes to the companies and customer exposed to the BusBank (or the BusBurn failure) but let’s hope this highlights the dangers for operators and customers dealing with middlemen. It seems that the race to the bottom on pricing has really hurt the market including the Internet Broker type services.
Operators needs to focus on marketing the industry themselves and focus locally and Customers need to get back to dealing directly with local based businesses that actually operate the vehicles? They’re are some great companies out there, with great staff and local knowledge ready to give you value and excellent experience.
At TravelManager we believe the future is getting the customer connected to the right company. We’re now working directly with companies on their marketing efforts, on their websites etc. Keep reading the blog in the coming weeks and months to find out more.
Regards,
Eamonn
September 5th, 2009 at 1:53 pm
There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.
– John Ruskin, (attributed)
( English critic, essayist, & reformer (1819 – 1900) )
September 5th, 2009 at 2:44 pm
[...] more about the BusBank Chapter 11 Filing on: TravelManager Blog Comments [...]
September 16th, 2009 at 2:44 am
We can sit here and get mad about what busbank does but the fact is that there is few I mean few operators that can sell there own equpiment. Our margins are thin as it is and I know I cannot afford a good sales person. I rely on these brokers to keep my buses moving. So if you do not want to take easy business — Move over because I do. I wish them the best of luck and guess what Industry the brokers are here to stay. It is not my opionion it seems to be a fact. Word of advice do not over extend your self or your company- but take the work.
September 17th, 2009 at 4:11 pm
I worked for the Busbank for three years and it was a nightmare. The turnover rate hovered around 75%. We were regularly instructed on what to say about safety concerns, but since we never conducted any kind of inspections or surveys, most statements were out and out lies.
Regarding Franks comment, until the industry stops allowing its members to low ball their pricing, operators will be forced to cut corners, sometimes with tragic results.
September 18th, 2009 at 5:01 am
Frank is correct. Bus owners and operators should not be scared to do business with charter bus brokers. The simple rule should be, don’t extend any credit and just request to be paid in advance. There are several brokers who gladly pay before the charter so what’s the harm? He’s also right in that they are here to stay. These brokers do something that local charter bus owners and operators do not do, they sell. While most bus companies think the key to sales is a yellow page or a non-ranking website, some brokers know how to sell and get the business. The bus companies who provide quality service, decent pricing and show the brokers a little consideration since they are ones spending the money to bring in the charters, easily win the work.
Also, everyone cries brokers, brokers, brokers. Let’s face it though. Even the top 3 brokers probably don’t have more than $50M a year in business (Busbank) included. In the realm of the motorcoach industry this is nothing. So why not enjoy the work. Those who are in with the brokers, get paid in advance and receive work are the winners. Stop your whining about bus brokers and learn to deal with it. There is no industry in business where there are not people brokering something or trying to sell retail what they are hoping to get for wholesale. We accept middlemen all day when we do business. We buy buses from dealers, we buy insurance from brokers, we buy supplies from distributors. What makes the bus brokers different? All they are trying to do is sell our service at a mark up and if they can, great for them and if they can’t, then the customers will shop and find it for less. No harm, no foul.
Some bus companies get over $100K a year from brokers. Business that perhaps otherwise they would not get. $100K for some companies is the difference between them staying in business and going out of business. Bus brokers have created a niche market for themselves and local bus companies won’t take that away. They can’t afford to and they don’t know how. Look at idiot M*** G**** at Busrates.com. With all his B.S. he has done little to nothing to impact the charter bus brokers. As far as I am concerned his site is crap and the UMA is retarded for partnering with him. He will list anyone and everyone on his site just to collect a few bucks. There are companies on there that are illegal, unlicensed and don’t have half the equipment they advertise. HE PROMOTES FALSE ADVERTISING AND UNFAIR COMPETITION. He also has no regard for safety and is worse than the brokers if you ask me. The broker that I work with makes me provide insurance, constantly checks my safety rating and is on top of their game to ensure they are providing their clients with the safest trip possible, I like to see that.
Like Frank said, if you don’t want the business – there is plenty of others who will take it.
September 18th, 2009 at 5:03 pm
All good comments but Frank if you’re margins are too tight then you can’t afford NOT to get a good Sales Person. The nature of an online broker is to sell as high as possible and pay as low as possible.
It’s not complicated, you focus on your customer service and present your company effectively online. It amazes me how few operators have a website or consistency on their branding.
Regards,
Eamonn
November 17th, 2009 at 4:31 pm
Good riddance!!!!!!!!!!!!!!!!!!
March 20th, 2010 at 4:57 pm
I wish I could set on my ass and make a living like a broker,off some one else’s hard work.If all the broker’s bankrupted,the customer’s are still going to be calling on the bus companies at the end of the day.Givin enough time Bus Rates.Com will put all the brokers out of biz.2 or 3 more years? If a broker,with no over head compaired to a coach company,can’t make it,then there is something wrong with the whole concept of the brokers.Richard
March 31st, 2010 at 9:44 pm
Richard, my friend, you are a idiot. How do you think these brokerage companies get all the customers to come to them in the first place. It is called advertising, and it cost a ton of money. Do you have any idea what type of money you need to do optimization, and search words online to ensure you are getting to the right customers? My god, your comments alone siginifies why there is a need for these types of companies, because a lot (not all) local operators do not have the business accumen to deal with higher level customers. They also are never at their desks working, so they are impossible to get in touch with. There is a need for good “brokerage companies” out there, simply because there is not enough regulation in the bus operator business. There are to many really bad companies, and to few really good one. It is up to the broker to get the customer to the right operator, as opposed to the operator trying to run his last ’88 MCI in the lot.