TO ALL OF OUR CUSTOMERS---AND OUR FRIENDS:
As each of you are aware, Cape Coral Steel filed Chapter 11 bankruptcy on Nov 13, 2009. We did so with the determination and belief that we would successfully come through the ordeal stronger than ever. Each of our dedicated employees worked extremely hard to help us make sure we were successful. It just wasn't to be...and for a number of reasons.
I looked long and hard the first time we thought about the filing, and can now outline the problems that brought us to the point of filing. Given the current economy, we had a dramatic drop in sales...more than 50 %, and we held faith in a bank who's motto was 'WE BELIEVE IN YOU". Our bank was a community based bank that consistently assured they would stand with us in good times, and in bad. We even met with the bank, at OUR request, 14 months prior to the economy's downturn, and warned them of impeding issues adversely affecting business. We kept them informed of every business decline we encountered, and payment problems we experienced from slow or non-paying customers. We even developed a strategic master plan, long before the bankruptcy was considered, for the bank to review and comment on. There was no response of assistance from the bank regarding this effort. When a response did arrive, it was in the form of a consultant from Detroit, who was tasked with reviewing many of the bank's accounts. When we met with him, it was clear by his actions and comments that any business having problems, even when linked to the economic crisis, is being run by incompetents.
As we struggled to maintain and pull out of the difficult times of chapter 11, we found many will take advantage of your crisis. It is difficult, if not impossible, to find the jobs you need to exist, and those owing you for jobs completed refuse to pay--some offering substantially less, believing you will accept whatever is offered, and knowing legal action is nearly impossible for you to pursue due to legal costs, even if it's rightfully owed to you. We did, however, have a few clients who were faithful and diligently attempted to assist us through this rough time..to those, we are eternally grateful.
The final blow, and that which forced us over the top, came from the federal government itself. In an era of economic crisis, and in the midst of a new administration promising to assist small business, we felt the jaws of rejection close in around us. The IRS, who owed us a substantial refund--a refund which was very much tied to our plans of recovery--refused to tender that refund. When contacted, their offices confirmed they had the "right to withhold our money for as long as they wanted". A government with little concern for it's citizens, but heavy on control is a government out of control. The government grants money to those creating NO jobs, while withholding money belonging to us, which was geared at RETAINING jobs, and creating work. We still have a difficult time understanding this.
I give a hearty "thumbs up" to all the small businesses that have made it through this economic ordeal, and those who continue the fight for their employees. For the rest of you, those who also succumbed to economic pressures, and are falling prey to the challenge, believe me, I know how you feel. We put our entire lives, personal dedication, and financial resources into the dream of growing and maintaining a small business; to ensuring those who worked for us had a mode of support for their individual families, and to contributing to our local community's economy. When it fails, you are humbled, and left with questions when it's all gone. All we have left, is our God, and our own determination to go on.
I thank all those faithful friends and customers, and pledge to each of you..."I'LL BE BACK".
Count on it...
Robert K Schulz
