Rubies the single largest costume company in the World filed for Bankruptcy. The New York based company have filed for voluntary petition under Chapter 11. The family owned company hopes to restructure under Chapter 11. “Given the highly seasonal nature of our business, our manufacturing relationships in China, the chilling impact of the COVID-19 pandemic on the U.S. and the global economy and potential liquidity pressures, the Board of Directors determined that the Chapter 11 filing is our best path forward as we carry out our restructuring efforts,” says Rubie’s President Marc P. Beige. “We believe that this decision will best serve our customers, licensors, employees, and business partners.”
Rubies had recently cut 75% of its entire workforce back in March 2020. Recently the company has been creating face masks to help thru the covid 19 crisis. The company holds licenses such as Ghostbusters, Star Wars and Marvel comics.
Rubies problems from our view point go deep. Halloween retail was taken over by Amazon, Walmart, Target and Spirit when Rubies thrived most Halloween retailers were Independent small business. Companies like Walmart have created their own brands of costumes cutting out companies like Rubies. Rubies was instrumental is breaking the famous Chicago Transworld show apart wanting to part ways with haunted houses and Transworld. Since that move was made the Halloween retail show has been in steep decline. Some report attendance as low as a couple hundred buyers, walking up and down isles as if visiting a Ghost Town.
Meanwhile Transworld started a haunted house tradeshow which bosomed into Escape Rooms, Christmas, VR, with some Halloween retail. Transworld's Amusement show now attracts over 10,000 buyers from all over the World. Today haunted house owners have diversified opening new business other than haunted houses such as escape rooms, axe throwing, and family fun centers. We can only imagine had Rubies embraced the haunted house community, these owners would be their new small business customers. Nearly every single haunted house has now delved into Halloween retail, but considering haunts spend tens of thousands on marketing they'd been the perfect new partner.
What a missed opportunity for Rubies! Rubies could have started a program to educate haunted house owners how to open Halloween retail stores, using their foot traffic to drive retail sales. The Halloween retail show is on its death bed there is no saving it at this point. The retailers need to make the call to Transworld and attempt to re-connect the two shows.
Haunted Houses are the future small business retailers to bad Rubies didn't see that 13 years ago! We can now only look towards the future. The once mighty company has been reduced to rubble, but there is hope make the call to Transworld where new customers await partnerships.
Hauntworld community it's time for a reality check.
Haunted House Vendors: There is only one solution at this point get loans. The government is offering you 8 weeks of payroll money if you keep your staff employed. Why wouldn't you? Build some product, create the stuff you know sells and skip the rest. Build up some inventory and be ready when haunted house owners start buying. Vendors you might also consider an SBA loan which would save your business, and maybe help grow it. The reality is however that haunts aren't going to be buying much this year. No virtual tradeshow, discounts, or late MHC show is going to change anything. Haunt owners have the luxury right now of sitting this buying season out. This virus hit our industry at a time that benefits the haunted house owner. Had the virus breakout happened 14 days later haunted house owners would have given vendors orders some with cash, checks and the situation would be flipped. But now haunt owners are the ones who benefit as most Renovation projects typically start after Transworld not before. I personally think sometime in April all this is going to calm down, people will go back to work, but even if the media switches topics from virus the new topic will be more bad news (unemployment). The unemployment is going to be a record high, some business on the brink prior to this situation will close forever. Millions are going to lose their jobs and the media will talk about that on top of an election and virus. Everyday this summer will bring more bad news scaring off haunt owners from buying anything.
Furthermore you have a Presidential election coming up this year. There will be no PR for haunted houses this year zero! All the media will focus on is virus, economy and election. So what should vendors do? Should vendors expect any orders? Great questions! I'll answer the order question first, yes I think you will get some orders but they will trickle in here and there, and some orders might surprise you! With that being said to take those orders and complete them you will need cash, apply for government grants or loans. Keep in mind there are two things going on right now grants and loans. The grants are forgivable if you retain your workforce. The government will give you the money to pay your workers so take advantage of that and make some product be ready to ship when orders do come. Also consider a zero interest rate loan from the Government I mean what in the hell do you have to lose?
Vendors there is only ONE solution right now GET LOANS GET GRANTS! Thinking there will be some miracle life raft sometime this summer is the wrong move.
I commend Transworld for trying to find a new show date for MHC, but at the end of July its too little too late. I doubt most vendors have anything to bring and sell as they'll be hand to mouth between now and then, meaning get an order make it ship it... not many will have inventory to sell at a show. I hope the show helps as many vendors as possible but you can't wait around to see what anything in the future brings you need to act now! In fact if I was in your shoes I'd be looking at every possible way to save money, hunker down into your shop make product, take government assistance and sell as orders come in. If you take governement loans or assistance maybe you could built up some inventory, and if you havne't already sold it all by the new MHC grab a table and sell, sell and sell! You have to make this work for your company and your staff. You must find a way to grind this out and hope the haunted houses have decent seasons.
We need all the vendors BACK in St Louis at Transworld 2021. We need ALL OF YOU TO RETURN this how we save your business and the industry at the same time. We can't take steps backwards, we need the Transworld show 2021 to be the biggest one ever! We need to save Transworld as well who've invested into this industry like no other company before or after. We can all achieve this by stopping everything you're currently doing and apply for government loans and grants.
To my fellow haunted house owners... you really need to get a copy of my new DVD "How to Get Rich" because this DVD focuses on things you need to do to increase your business revenue. Oddly enough I made this DVD prior to this situation but now more than ever, everything discussed in the DVD needs to be applied and applied fast! Instead of expensive renovations you need to work on making your haunt easier to operate. You need to build more scarezones where one actor can double or triple up rooms. You need to figure out ways to go from 100 actors to 60 actors like it was 10 years ago. Haunt owners needs to figure out ways to cut expenses, marketing, and operation costs. Haunt owners you need to skip room renovations and instead built new revenue sources to take advantage of the customers who do come. Do you need a new scene or a 5 minute escape room? Do you need another bloody prop or a zombie paintball arena? You need to figure out every way to increase revenue this haunted house season this will save your business in the event attendance is down by a lot.
Haunt owners should prepare for the worst but hope for the best. Haunt owners PR will not exist in 2020 due to the virus, economy and elections. It's time for you to get clever and once this virus passes jump on your social media and start promoting HIRING PEOPLE, talk about everything you're doing to make this Halloween more fun than ever before. You must be socially active. Lastly help your vendors when and how you can, don't be afraid to spend something, anything! We're all in this together, we need to be smart but we need to do our best to keep everyone in the game.
Below find links to government programs which can SAVE YOUR BUSINESS and a link to our new How to DVD.
Transworld the producers of the St Louis Halloween / Christmas / Escape Room Tradeshow
Update on Transworld 2020 Tradeshow.
The St Louis show has been cancelled for 2020. Transworld has plans to produce a new show in late July a garage sale slash MHC type show. In other words it will be MHC with a garage sale element as well. By saying 'garage sale' we mean tables will be sold to vendors to bring anything they have for sale. Vendors can bring anything and everything they have and sell it on the show floor. Think of a giant garage sale just everything is haunted. In addition some vendors will have regular booths selling product. The new show will take place in Chicago July 24-26, 2020 barring another cancellation due to virus conditions. Learn more about this show at www.MidWestHauntersConvention.com
Currently the show is postponed due to the virus outbreak. The convention center in St Louis has a 60 day block against gatherings which includes tradeshows.
Transworld is actively trying to find a new dates. The first dates available are in the middle of May. The most logical date would be over memorial day weekend. Our opinions here at Hauntworld is any dates into Mid-June do not work for the industry. If dates outside of late May do not present themselves the only logical thing to do cancel the show for 2020. We feel if the virus calms down within 30 days, and memorial day dates are open we should book the show and make it happen.
Beyond May dates nothing really makes sense. The question is will people attend a tradeshow over memorial day? Personally we believe the real buyers and vendors will due to the circumstances. So the real question should be posed to the haunted house industry will you skip your traditional family outings and attend a much needed tradeshow in St Louis over Memorial Day week?
If the show was shortened to 2 and a half days would you make the trek to the tradeshow? In other words the show starts Thursday at 2pm and ends Saturday at 7 pm, allowing people to head back home on Sunday still able to join events on Monday. Would this make a difference for you? Reason for starting the show Thursday at 2pm would allow 60% of TW vendors to set up the day of, saving them time and money.
Our personal opinion is yes the industry will be there the shows attendance might be cut in half, but it won't matter because the real buyers will be there. At this point it doesn't matter if 10,000 people attend, because clearly 60% of everyone who traditionally attends are not serious buyers anyway.
The Tradeshow is needed vendors are hurting and if Memorial Day is the only option then yes it should happen. All of this is moot if the virus impact hasn't drastically decreased, and bans of public assembly aren't lifted. Transworld is hurt by this, as is every single vendor who timed everything around being in St Louis March 2020.
Some vendors are asking Transworld to simply declare the show cancelled assuming then finally buyers will start making orders... this is clearly ill informed idea. Why? Haunted House owners right now are not seriously worried YET! The haunted house season wouldn't start for about 6 months why would a haunted house owner buy anything right now not knowing what is going to happen? Just because Transworld declares no tradeshow for 2020 won't change anything. Unless you're offering discounts so unreal, haunt owners simply aren't buying at the moment.
Vendors best hope is if the panic drops, Disney re-opens, sports go back into action, and things get somewhat normal in about 30 days. Personally I believe that is exactly what will happen and if it does, vendors will need a tradeshow and fast. Vendors will need to be prepared for a moments notice to get ready and again that rides on Transworld getting the date that make sense and the bans are lifted. Let me just state that this really isn't up to Transworld, or any of us, bans have to be lifted or this entire article is worthless.
I still strongly believe the main buyers will not miss the show for some lake side party over memorial day. I also believe that haunt owners will buy if or when everything calms down. So what are vendors suppose to do right now? Let's start with this message... this is no time to give up!
You can't give up! This is your way of life, this is how you support your workers, your family! The Government is giving loans, so borrow, or you just do your best until the sun comes back out and it will! Cut your staffs hours to the bare bones, whatever it takes to weather the storm but just don't lose faith. Everything will get better, and when it does the buyers will be there for the vendors, but vendors will need a show.
If the show is cancelled for 2020, and the panic ends by early Summer, haunted houses might make it out alive but what about the vendors. Our industry needs vendors now more than ever. We will have to do everything we can to help them. But if owners aren't willing to part with their money between now and the end of this nightmare, you need to be ready. Can you slowly stockpile inventory? Borrow money from the government, rent a storage unit and start stockpiling inventory for either new show dates, or for this summer when I expect buyers start making calls asking 'HEY WHAT DO YOU HAVE'? If you're going to survive this you have to bet on your own company, and this nightmare ending with haunt owners starting to buy buy buy!
What should haunted house owners do?
If you're in a position to help vendors and write orders please do that and now! If discounts are being offered take advantage betting this will all end and your haunt will open in September and do amazing. But I understand if you want to wait and see what happens. If things don't get better soon, I would start planning how you can operate your haunts with smaller staffs, cut back on expenses such as marketing, improvements, and even try to negotiate better leases if you don't own your property. If this situation goes on into the Summer or even Mid-Summer many people will not have the money to attend haunts. For the entire industries sake we need to get back to normal within the next 30 days and hope an end of May tradeshow can be pullled off.
If that doesn't happen we'll just have to take it day by day!
Honestly, and I'm usually right, (LOL) everything will calm down in about 14 days, and it will start with Disney re-opening its parks.
Have faith but be prepared to make a sacrifice for the betterment of the industry, and your business. We worked thru 911 and we'll work thru this nightmare together!
We shall continue to post updates as we learn them. Stay safe and stay scary!
Transworld Haunted House and Escape Room Tour - THREE NIGHTS ONLY
Where: The Darkness 1525 South 8th Street - St Louis Missouri 63104 - Next Door To Soulard Market - St Louis Escape (next door to Darkness) 1517 South 8th Street - Lemp Brewery Haunted House 3500 Lemp Avenue (Down the street from Darkness)
When: Saturday February 15th - Arrive anytime between 7 and 10 pm.
Tickets:http://darkness.fearticket.com
Each event is limited to ensure the best guest experience. Behind the Scenes Tour Limited to 350 - Lemp Live with Actors (500 limit) - Darkness Live (600 limit)
Tours and Dates: March 19th Thursday 7-9 pm Behind the Scenes Tour (Darkness - Terror Visions - Lemp - St Louis Escape) - March 20th Friday 7-9 pm Lemp with Live Actors - March 21th Saturday 7-9:30 pm The Darkness with Live Actors
Cost: Behind the Scenes Tour $120.00 Lemp Live w/ Actors $50.00 Darkness live w/ actors $60.00
What is Included: Behind the Scenes Tour: Take photos, video and see the attractions with no fog. This is the best event for haunted house or escape room owners. The Darkness and Lemp Live with actors experience a haunted house with real actors trying to scare the guests.
Details: The Darkness was totally renovated just for the haunted house industry. Experience all-new scenes including the new Spider Cave - Snake Temple - Skull Witch - Tons of new animations and special FX. The Darkness also replaced the older 5 minute escape room and replaced it with the all-new 5 Minute Coffin Escape Room. At the exit of The Darkness is new gift store items such as t-shirts, photo ops, and horror themed pinball. The Darkness in total will feature 16 scenes which have been totally rebuilt or updated. This is by far the biggest update we've ever done to the Darkness. Terror Visions also includes new scenes and animations. Lemp Brewery will feature new scenes and screams. St Louis Escape features an all-new game room with tons of pinball, arcades and the all-new Wonderful Wizard of Oz Escape Room. St Louis Escape has also renovated Pirates Curse and the Cellar game play since last Transworld.
Next door is St Louis Escape featuring: Cellar - Mummy - Hotel and Pirates Curse. Wonderful Wizard of Oz set to opening for Transworld. Book now at www.stlouisescape.com
