I let the cat out of the bag in December that Gage had sold, but I knew about the sale months in advance and was waiting to see if the local media would report on it. SF Bizzo was the first to report on the sale (which I am assuming she was PAID to print the article). My suspicions were correct;
The acquisition of Gage’s assets came amid significant financial challenges for the company. Gage became employee-owned when its ESOP was formed in 2007, and the value of that ESOP had dropped to 1.5 cents per share, which went to zero after necessary administrative and professional expenses were paid, according to a letter sent to shareholders.
It communicated that Gage “has navigated significant financial challenges” over the past several years, including “persistent cash-flow constraints, the general slowdown across the construction industry and the company’s broader financial trajectory,” which ultimately required pursuing an investor “to ensure the long-term stability of the business and protect the interests of its shareholders.”
The letter continued: “We know this is not the outcome anyone hoped for and sincerely regret the impact this has on you.”
The Gage real estate in northeast Sioux Falls was owned separately. Part of it was purchased in November for $14.4 million, according to Minnehaha County records, though it’s not clear what that includes. The property includes a highly automated 200,000-square-foot production facility that opened in 2019 at an estimated cost of $40 million and a two-story office building.
So why hasn’t the media touched this? Well, there is the obvious screw job to employees there is also the involvement of cemetery fraud). I found it funny that the company that BOUGHT* them was the one to pay a news service to break the story, this tells me the heat in the kitchen hasn’t been good.
*Talk about a misleading headline;
Gage Brothers becomes part of Minnesota-based concrete company
If I sell my house to another family, I don’t get to move back into the house I just sold them and become a PART of their family. The business SOLD to a competitor because they were facing bankruptcy, this isn’t a partnership.
UPDATE: Stormland is also reporting on it, after what appears to be a press release sent to the media. The the new owners are giving former Gage employees who stayed on with Molin a ESOP option with their company, but I am assuming those investments will start from scratch because if you were to bring in hundreds of employees in it would reduce the value of the ESOP stock for current Molin employees.
This is sad news. Where “cemetery fraud” is concerned: PLEASE be aware that this cemetery issue pertains to descendants of ONE of the TWO original Gage Brothers. Alleged misdeeds by descendants of that ONE Gage brother should not reflect on both local 20th century branches of that family. While I have no personal desire to denigrate or ‘out’ any branch of the Gage family by “naming names” (the cemetery issues are explicit on other social media), I know from personal experience that the other late Gage brother was a highly respected and successful local businessman, and his surviving adult children are fine people who had NO involvement with the cemetery misdeeds. The people who were/are acquainted with that late Gage brother and his surviving adult children all know this – which is what ultimately matters. However, it’s very regrettable alleged cemetery malfeasance by members of another branch of Gages…sullies that otherwise fine local family name in ANY way.
There does seem to be some missing pieces in this sale. The buildings part of the sale? There was some land horse trading concerning the old west 12th street location and the plant site. A $40million site and what was Gage Brothers equity? It appears to be a zero equity, so the new owners are just taking over the mortgage?