CORTLAND — A group of private investors is hoping to spark a turnaround at Cortland Line Co. after acquiring the business from its employees. A group of seven investors bought the fishing-line manufacturer July 18 from the firm’s employee stock ownership plan. Financial terms were undisclosed. The new owners are all friends and fishermen, says […]
CORTLAND — A group of private investors is hoping to spark a turnaround at Cortland Line Co. after acquiring the business from its employees.
A group of seven investors bought the fishing-line manufacturer July 18 from the firm’s employee stock ownership plan. Financial terms were undisclosed.
The new owners are all friends and fishermen, says Randy Brown, Cortland Line president and chief operating officer and a member of the ownership group. Three of the new owners are based in Central New York with others located elsewhere in New York, New Jersey, Connecticut, and Texas.
The buyers were motivated by the desire to help boost a brand well-known among anglers and to be involved in a business that can encourage people to get outside, Brown says.
He acknowledges the company’s new owners are taking on a significant challenge. Although Cortland Line is one of the most recognized brands in the business and generates sales all over the world, the firm has been out-marketed by younger companies, Brown says.
Competition from overseas has also been a challenge, he says.
The poor economy hit the company as did a weak fly-fishing season last year, Brown adds. In addition, new products from other companies have taken a bite out of Cortland Line’s market share.
The firm has also had issues with delivery and consistency, Brown says. The result has been four years of financial losses.
“Our goal this year is just to stabilize that,” Brown says. “If we were to break even, that would be a win. We really need to earn back customers. That’ll be the challenge.”
Of dozens of potential new owners that looked at Cortland Line when it was up for sale, Brown says his group was one of just two to make an offer. But the company has the potential for a strong return to growth, he says.
Many of Cortland Line’s employees have been with the business for more than 30 years. About half have worked there more than 20 years.
“There’s a lot of knowledge here that really will be the strength of the company,” Brown says. “They know exactly what to do as far as manufacturing is concerned.”
Cortland Line generates annual sales of about $7.5 million and has customers all over the world, including in Australia, Japan, and Europe.
One of the top priorities for the new owners will be a major equipment upgrade. Some of the manufacturing equipment used at
the company’s plant is more than 100 years old.
Heating and cooling systems and lighting all need work, Brown says. Cortland Line, founded in 1915, has gone at least 10 years without a major equipment overhaul, he adds.
The company needs to develop new sales and business plans and ensure better communication across its manufacturing, shipping, and sales operations, Brown says. The new owners are hoping that if they show the potential for growth, New York state might step in with some aid.
The new owners themselves also might pour more capital into the business at some point, Brown says.
Long term, the goal is to expand Cortland Line’s work force. The company employs 52 people now. The hope is to retain all of those positions and add new ones, Brown says.
Cortland Line is based in a 146,000-square-foot building at 3736 Kellogg Road in Cortland.
The company occupies about 80,000 square feet of the building, with tenants taking up other space.