neophyte
Well-known member
SK got caught by a bunch of major shifts in the tool and retail market at the same time.It's possible they are not performing well financially and looking to cut costs. If you're a "lifetime warranty" company that starts going back on the lifetime warranty that's typically a sign of the end coming for an American MFR. There's no reason to buy more expensive tools, which are assumed to be priced where warranty is assumed, if they don't stand behind the warranty. They are opening the door to HFT and other cheap and easily available options which will further decrease their sales and the death spiral is set in motion. Happened to SK, looks like Wright is next.
The management at SK bought out the SK brand from Facom Group, which SK had been owned by.
This happened shortly before Stanley Tools purchased Facom Group, so it is likely the SK management knew that Facom was potentially up for sale, and that a large US Tool conglomerate might purchase Facom, and hence SK, and have no need for the SK manufacturing facilities. (Stanley and Snap-On were both buying European tool manufacturers).
SK was supposed to continue distributing Facom in the USA, but after Stanley acquired Facom, there was no need, since Stanley had their iwn distribution system, so all the Facom SK had was surplussed at cheap prices. (This is how I got Facom locking pliers at dirt cheap prices, for $16 a pair)
In addition, the SK buyout by the managers happened around the time Amazon started carrying tools and items other than books and CDs and other media.
Amazon tended to purchase in bulk, and then minimally markup the items.
This meant that Amazon’s price was in some cases lower than SK’s wholesale price for SK dealers who purchased in smaller quantities, plus the advantage of internet sales having no sales tax, and Amazon's actual quick shipping at the time.
This caused numerous SK dealers to stop carrying SK tools.
The SK management buyout happened in 2005.
Then in 2007-2009 you had a recession, which then f@cked the economy.
SK had money issues, and apparently failed to pay things like health insurance premiums for their workers, without telling the workers, and SK went under. (It’s possible workers were also salvaging imperfect “scrap” tools, and selling the tools as “new” on eBay, etc. which further screwed withSK’s reputation at the time.





