TTI Now Owns Oreck

[isufan11]

Maybe.....

Just maybe TTI is buying Oreck to make their floor care line bigger in order to divest the entire line in the future? Having 4 will known brands in a line would make them appealing to a buyer and easier to sell. Since TTI makes over 80% of its profit off of their power tool line, such as Ryobi, Milwaukee, & Homelite, and it has acknowledged recently in their financial report, that they are struggling in the floor care area it would only make sense for them to want to sell the entire line off making a profit.

Microsoft is probably the best example of this when they were buying up small tech companies (and sometimes large companies) so they could sell like companies in a large grouping, making a profit. Sometimes they would spend 2-times as much as a company was worth just to use it to help sell grouping.

Just a thought......

 

[kirbyclassiciii]

If TTI ever does decide to spin off its floor care division in the future, maybe it could wind up in the hands of Warren Buffett's Berkshire Hathaway, which owns Kirby?

~Ben

 

[sebo_fan]

From what I read years ago TTI wants to diversify products right across the appliance ranges; having just one other vacuum cleaner brand is perhaps just small fry. Of course it would be good to see some more bagged uprights but also for them to come to the UK.

 

[jmurray01]

That's just it though Sebo_Fan, TTI will probably start making lots of bagless Orecks and put the bagged version on the back burner. I could be wrong but doubt it.

 

[sebo_fan]

As sure as you were when you said the Turbo Power would disappear off Hoover UK's website? Still there by the looks of it.

Looking at Royal vacuums US website, are there any bagless uprights on there? Doesn't appear to be any - there is a bagless hand held based on the current Dirt Devil hand held and of course the TTI cordless windtunnel stick vac. The rest of the uprights are all bagged, soft bag heavy style ones and hardbox plastic uprights.

Thus, it is clear to see that by the website alone also backed by TTI that Royal have yet to go down that bagless upright route. Even if TTI do that to Oreck, I'm sure buyers will be offered bagged uprights - TTI wouldn't waste the opportunity to make money off bags and filters alone.

http://www.royalvacuums.com/Household/default.aspx

 

[daknx1994]

Wow I wasn't expecting to hear this today. There is always hope that jobs in Tennessee will not be lost and moved to China. Just trying to stay positive as I would hate to see all those people lose those jobs.

 

[daknx1994]

I agree with sebo_fan that there will probably still be bagged Orecks as vacuum companies make a good deal of their profit off of the bags and filters.

 

[kirbyclassiciii]

I also want to point out that TTI does not manufacture its product directly all the time; rather, they get some of their stuff from some private contractor in China called "King Clean."

~Ben

 

[dysonman1]

King Clean also makes some Eureka bagless uprights. Virtually identical to Hoover. Example: The Eureka Zoom is virtually the same vacuum as the Hoover Sprint. King Clean also makes Euro-Pro vacuums. They are pretty much the 'go to' manufacturer for a lot of vacuums world-wide.

 

[jmurray01]

Thing is though, there is barely any money in it for TTI in terms of bags and filters as the majority of vacuum owners these days buy generic bags and filters.

 

[bagintheback]

Some Good News

<p style="line-height: 24px; font-size: 16px; margin-bottom: 18px; padding-left: 160px; color: #2c2c2c; font-family: Helvetica, Arial, sans-serif; font-weight: normal;">Tom Oreck said he also understands that Royal plans to keep the company’s manufacturing plant in Cookeville, which has more than 200 employees.</p>
<p style="line-height: 24px; font-size: 16px; margin-bottom: 18px; padding-left: 160px; color: #2c2c2c; font-family: Helvetica, Arial, sans-serif; font-weight: normal;">“I’ve been told they intend to continue to operate the plant and even to expand it,” he said.</p>
<p style="line-height: 24px; font-size: 16px; margin-bottom: 18px; padding-left: 160px; color: #2c2c2c; font-family: Helvetica, Arial, sans-serif; font-weight: normal;">What’s still in doubt, though, is the fate of the 90 employees at the company’s headquarters in Nashville, as well as hundreds of workers at company-owned and franchised Oreck sales and <span id="itxthook1p" class="itxtrst itxtrstspan itxtnowrap" style="height: auto; left: auto; right: auto; top: auto; bottom: auto; border: 0px; background-color: transparent; line-height: normal; position: static; font-family: inherit; font-size: inherit; float: none !important; display: inline !important; white-space: nowrap !important; padding: 0px !important; margin: 0px !important;"><span id="itxthook1w" class="itxtrst itxtrstspan itxtnowrap itxtnewhookspan" style="float: none; height: auto; left: auto; right: auto; top: auto; bottom: auto; background-color: transparent; position: static; display: inline; white-space: normal; font-family: inherit; color: #009900; padding: 0px 0px 1px !important; margin: 0px !important; text-decoration: underline !important; border: 0px 0px 1px none none solid transparent transparent #00cc00;">service</span></span> centers across the country, Tom Oreck said.</p>
<p style="line-height: 24px; font-size: 16px; margin-bottom: 18px; padding-left: 160px; color: #2c2c2c; font-family: Helvetica, Arial, sans-serif; font-weight: normal;">“In speaking with (the Royal people) after the auction, I really do think that they recognize that the Oreck customer and the brand are different (from Hoover) and that the infrastructure is there to support the customer,” he said. “They are smart<span id="itxthook2p" class="itxtrst itxtrstspan itxtnowrap" style="height: auto; left: auto; right: auto; top: auto; bottom: auto; border: 0px; background-color: transparent; line-height: normal; position: static; font-family: inherit; font-size: inherit; float: none !important; display: inline !important; white-space: nowrap !important; padding: 0px !important; margin: 0px !important;"><span id="itxthook2w" class="itxtrst itxtrstspan itxtnowrap itxtnewhookspan" style="float: none; height: auto; left: auto; right: auto; top: auto; bottom: auto; background-color: transparent; position: static; display: inline; white-space: normal; font-family: inherit; color: #009900; padding: 0px 0px 1px !important; margin: 0px !important; text-decoration: underline !important; border: 0px 0px 1px none none solid transparent transparent #00cc00;">business</span></span> people, so they should be able to figure it out.”</p>
<p style="line-height: 24px; font-size: 16px; margin-bottom: 18px; padding-left: 160px; color: #2c2c2c; font-family: Helvetica, Arial, sans-serif; font-weight: normal;">A Royal spokeswoman did not return <span id="itxthook3p" class="itxtrst itxtrstspan itxtnowrap" style="height: auto; left: auto; right: auto; top: auto; bottom: auto; border: 0px; background-color: transparent; line-height: normal; position: static; font-family: inherit; font-size: inherit; float: none !important; display: inline !important; white-space: nowrap !important; padding: 0px !important; margin: 0px !important;"><span id="itxthook3w" class="itxtrst itxtrstspan itxtnowrap itxtnewhookspan" style="float: none; height: auto; left: auto; right: auto; top: auto; bottom: auto; background-color: transparent; position: static; display: inline; white-space: normal; font-family: inherit; color: #009900; padding: 0px 0px 1px !important; margin: 0px !important; text-decoration: underline !important; border: 0px 0px 1px none none solid transparent transparent #00cc00;">calls</span></span> on Tuesday.</p>

http://www.tennessean.com/article/20130710/BUSINESS01/307100114

 

[sebo_fan]

Maybe in the UK, buyers buy copy bags but its not a common thread globally where the Oreck brand sell in.

Buyers can buy what they want but you don't get "generic high filtration" copy dust bags in the same way that Oreck produce them. They used to offer three to four different types when I had my Oreck XL all those years ago.

Another aspect of Oreck that I personally would see sorry to go are their air purifiers. I know that some owners have had bad results from them but I lived in a flat in Edinburgh near a factory where the home had two Oreck purifiers and I found them to be largely excellent. TTI could develop that further as well.

 

[gottahaveahoove]

I just can't see TTI

leaving Oreck "in tact" in its current locations.The HOOVER bag plant, (Building 2) closed on New Year's Eve of this year. a very sad day, indeed.
But, time will tell.

 

[daknx1994]

I hope that they stay to their word and keep the plant here in the States. I hope they don't stop selling in the service centers. I love going into them as they are always nice and very friendly and they always have what I need. This is a good thing to hear though.

 

[vac_whisperer]

This bugs me. Too many great conpanies have been bought out by TTI and ruined. Whos next? Kirby?
Were in what i like to call the "TTI Armageddon".

 

[vac_whisperer]

Oops, typo

Meant to say "bought out by TTI an ruined".

 

[vackid]

In regards to the Oreck Clean Home Centers, they have been dying off ever since the last owners made the vacuums available in Walmart and online for less then the Clean Home Center's wholesale cost. When Oreck decided to break their contract and go into Walmart, many Oreck stores brought in other brands like Miele and in some instances Riccar.They then just became vacuum stores. Also most of the stores were never compensated for doing the "free" tune-ups. For many dealers, Corporate expected them to pick up the tab since they were sending customers into their store, and corporate believed that the impulse and after sale items they would sell these customers would make up for the service bills, in some cases, that worked, although from dealers I talked to, It didn't.

The executives that drove Oreck into the ground failed to realize exactly who their market was. It wasn't 30 year olds, it was the baby boomers. The older crowd that was struggling with a Kirby or other 20lbs + vacuum. The Oreck will never be, and shouldn't try to be a Dyson. The Dyson has captured the 20-50 year old audience, Oreck had the 50-100 audience. You cannot be all things to all people. They were doing well at selling these vacuums to older people. If they worked on that and expanded that even more, they wouldn't be in the mess they are today.

I also wouldn't automatically assume that TTI will run Oreck into the ground. I know many people assumed that Royal would be dead when TTI took them over. Well I carry Royal in my store and they are an excellent piece for our lower-mid range customers. Some of them are just the old Hoover designed but some of them are actually original designs that work and sell very well. The S18 is a great little canister for under 300 dollars. Did anyone notice how Royal tops out their power nozzle canisters where Miele begins? I think Royal executives realized, they aren't Miele. They aren't high end anymore, so they made the best entry-mid range vacuums they could. They're doing well for the dealers and doing well for the company. We sell their all metal uprights commercially and we get rave reviews because they are bulletproof.

We can sit here and try to guess all we want one what will happen to Oreck but only time will be able to tell.
As a TTI warranty station, I'm curious to see if we will also become the warranty station for Oreck. We have an Oreck dealer about 20 minutes from my store and they've been doing Oreck for YEARS but, I've been signed up with TTI first, so only time will tell if we will now be responsible for Oreck warranty repairs or they will keep them on as a dealer.

 

[kirbyvertibles]

welp gee I can't wait to see $65.00 Oreck cyclonic swivel glide visions at walmart! DAMN

 

[1926700]

and i cant WAIT!!!!!

till they discontinue the Commercial Guardsman Convertible (which has been around for 43 years, no less) and we will now see a Guardsman II which will be a orange and black commercial Oreck,  part of there "improved" commercial line. After all the Guardsman looks to old!....lol

 

[vegassucks]

Original Oreck built in Germany

The original oreck was built in Germany, I seem them in a thrift store years ago in Southern California. The Oreck did have a great brush and served a purpose for older users as they were light weight. They always gave my Carpet a nice combed look.