Aero Leather Clothing trial update

[pawineguy]

The Roadster and Halfbelt have been inspired or pirated from the Aero Highwayman and 50's Halfbelt. I'm not sure about the other designs. The Detroit, Cafe Racer are somewhat different from the Bootlegger and Aero Cafe Racer. Then there are designs that Aero doesn't make like the Peacoat (which looks like Lost Worlds), the GT jackets that I think its a standardized design too from somewhere else and the leather blazer.

I think that we should hear what both parties have so say. While it's hard to believe Will is only machinist at Alexander, the statement they are making seems reasonable to me.

Their statement is only reasonable IF WL was only a machinist, and IF none of the crimes committed by WL benefited AL. Since it's clear his crimes caused material harm to Aero (ALs most direct competitor), leaving them in dire shape, then that's an impossible argument to make. (And that's leaving aside any discussion of poaching employees or the genesis of their designs and patterns)

 

[Superfluous]

Interesting financial information re: Alexander Leather Company ("AL") / Simmons Bilt Clothing Company ("SBC"): http://companycheck.co.uk/company/S...ING-COMPANY-LTD/financial-accounts#financials

Its all a matter of public record. The following is AL's "abbreviated accounts for the period ended 30 November 2013":

 

[Sloan1874]

The lawyer didn't challenge Ken when he said that two-thirds of AL's patterns were Aero copies. [huh]

 

[Superfluous]

The lawyer didn't challenge Ken when he said that two-thirds of AL's patterns were Aero copies. [huh]

Was there any testimony at the trial regarding comparisons between AL's jackets and Aero's jackets?

 

[Sloan1874]

There was a small exchange from KC's cross-examination by defence. Here's my note:

"When asked by Ms Dow why he had subsequently spoken to suppliers and customers concerning AL, telling them that could not stock Aero if they sold AL jackets. KC said that the company had been offering Aero jacket designs at cheaper prices, and some stockists had shown interest. He added customers were being told that Aero couldn’t cope with their current situation [the loss of staff and order backlog].
When KC said that they were concerned about plagiarism, Ms Dow retorted “that this was rubbish”. But he said that there was the potential for counterfeit jackets - ones made by Lauder but bearing the Aero label - and therefore it was reasonable practice to decline to sell in the same outlets where AL jackets were being stocked.
Ms Dow contended that “this was about money”, to which KC retorted that “I had to protect my company, protect my staff”, adding that Alexander Leather were not in competition with Aero, selling jackets on their website for £150."

Given that the police recovered Aero/Iron Heart labels from Will's home, I think that Ken's fears were perfectly legitimate. Also, there is a video and report comparing an AL jacket on Highwayman pattern and it's pretty damning.

 

[Superfluous]

Also, there is a video and report comparing an AL jacket on Highwayman pattern and it's pretty damning.

So I've heard.

Whatever AL's strategy might have been, it does not appear to have worked.

 

[Sloan1874]

It's not just design, it's construction as well, stuff that's very hard to explain away as 'it's a common design'.

 

[Monitor]

Also, there is a video and report comparing an AL jacket on Highwayman pattern and it's pretty damning.

Not publicly available, I presume?

 

[Sloan1874]

Not at the moment...

 

[pawineguy]

Interesting financial information re: Alexander Leather Company ("AL") / Simmons Bilt Clothing Company ("SBC"): http://companycheck.co.uk/company/S...ING-COMPANY-LTD/financial-accounts#financials

Its all a matter of public record. The following is AL's "abbreviated accounts for the period ended 30 November 2013":

Thanks @superfluous. All looks pretty unremarkable, debt doesn't seem to be anything too alarming for a new company which had to invest in equipment, facilities and needed working capital. Too bad there wasn't a P/L.

 

[Big J]

Oooh! Oooh! Can I change my username to The Seal Brown Knight ? :eusa_clap

Knock yourself out.
But I'll always know the man behind the sock is Otter.

 

[Superfluous]

Thanks @superfluous. All looks pretty unremarkable, debt doesn't seem to be anything too alarming for a new company which had to invest in equipment, facilities and needed working capital. Too bad there wasn't a P/L.

$9,000 in cash seems pretty tight.

 

[Big J]

$9,000 in cash seems pretty tight.

+1

 

[Monitor]

Looks like this is pretty much it for AL, huh?

 

[the loco]

Have you read the trial narrative thread, Loco?

The first three posts Sloan, will read the rest after.

 

[the loco]

Its tight in cash, but its hard to tell. They were mentioning some failed operation at their web site, when some buyer canceled his order. Then maybe Alexander will inject more capital as needed and they probably have access to credit. I didn't analized all the figures, but it seems they have more in stocks.

 

[Sloan1874]

Key section on patterns:

Further evidence of WL's preparation to leave came from Roberta Mills, Aero's sheepskin specialist.
Taken on in April 2011 by Lauder as an intern from Heriott Watt textile college, one of the first tasks given to her by him was to copy and cut out hundreds of existing Aero jacket patterns.
A time consuming task, taking RM six months to complete, the finished copies were all hung up in the factory's downstairs storerooms.
WL, RM said, did not explain to her why he wanted this job done, but overhearing conversations within the factory led to her realising that they “were being copied for another business venture”.

 

[pawineguy]

$9,000 in cash seems pretty tight.

Most likely they are drawing off of an established line, which is pretty typical for a small business loan. Payroll, suppliers, etc... probably comes directly from there. It just goes right onto the debt as it goes out. (that's my assumption at least) Sometimes the funding could be coming from that parent company that holds the 80% stock and that's who holds the debt and pays the bills as they come in... otherwise, at 9K, you're right, they wouldn't even meet payroll.

 

[Sloan1874]

Just another detail from Aero accountancy evidence. When it came to collecting cash owed to Aero, it went from 6.02 days in 2005, when sales were £610k to 24 days in 2011, when sales were £880k. At the same time, the length of time it took Aero to pay its creditors also rose, from 2.6 days in 2005 up to 35 days by 2011. This was seen as quite unusual.

 

[pawineguy]

Just another detail from Aero accountancy evidence. When it came to collecting cash owed to Aero, it went from 6.02 days in 2005, when sales were £610k to 24 days in 2011, when sales were £880k. At the same time, the length of time it took Aero to pay its creditors also rose, from 2.6 days in 2005 up to 35 days by 2011. This was seen as quite unusual.

That's a pretty dramatic cash flow swing. To be fair, the numbers in 2005 are incredibly short, but every industry has its own standards.