SPARTA — LaserMonks has closed. The multimillion dollar ink cartridge business started by monks near Sparta drew national press and was featured in the New York Times.
The decision to dissolve LaserMonks Inc. was based on numerous factors, “with financial performance of the corporation’s business being chief among them,” the corporation’s attorney, Kevin Roop of La Crosse, said Friday.
Roop said the decrease in financial performance can be attributed to many factors, “but the major contributing factors were the downturn in the economy over the last several years and increased competition in online sales of imaging supplies.”
LaserMonks was started in 2001 by the Cistercian Monks of Our Lady of Spring Bank Abbey near Sparta. The monks support themselves and their charitable projects with various ventures. LaserMonks sold products such as ink and toner cartridges online at www.LaserMonks.com and by telephone mail order.
On Friday, its website said LaserMonks is no longer in business and “If you are a customer who was waiting for an order, you will be receiving information by mail.”
Roop said LaserMonks’ assets and liabilities are being identified. Assets will be sold, and the proceeds will be applied toward the liabilities, he said.
LaserMonks’ annual sales grew from $2,000 the first year to $4.5 million, according to a 2008 Associated Press story on the company. By then, it also had started selling some food items and CDs of Gregorian chants. The abbey is nonprofit, and LaserMonks was for-profit, with all net proceeds going to charitable works such as a school in Vietnam that teaches computer skills to children otherwise living on the streets.
Holly Grady, executive director of the Sparta Area Chamber of Commerce, said Friday that she last saw the Rev. Bernard McCoy, who was LaserMonks CEO, in late January. He told her that LaserMonks soon would add a line of baked goods. “He seemed positive about growth,” she said.
Grady estimated the chamber office has received about 50 telephone calls since late February from people around the nation who had been trying unsuccessfully to reach LaserMonks. Some of the callers said they had ordered but not received items from LaserMonks, she said.
Grady said she was surprised the business closed.
Telephone calls and an e-mail from the Tribune to the Cistercian abbey were referred to Roop.
This is very sad. Online business is very difficult to predict as competition can blow you out of the water almost instantly. It sounds like the monks are on communication blackout while bankruptcy proceedings go forth. I assume since the abbey and the company were separate that they will not lose their home over the affair. Let us pray for those who Ora et Labora.
HT: Fr. Michael
3 comments:
This is, indeed, sad news. I pray the Monks will continue in their mission of prayer and penance.
I don't want to sound mercenary here...our small monastic community is also undergoing some very crucial financial problems.
If your readers could contribute anything, anything...we would be most appreciative.
Our insurance is killing us.
If anyone wants to contribute, go to http//:isjoseph.com.
You and your families will be remembered in our prayers and Masses.
Thank you.
(I hate even asking this!).
well I would surmise it was not the economy but lack of business acumen. I had two orders with wrong colors or only one of several ordered. There has to be a certain efficiency if you are doing in the "millions" as the article stated (?) I would suspect that is probably true.
I work for a company that was a vendor for them and I can attest to them not having a good business model. It seems like they used their monastery appeal to grow and generate business, but on the back end, it was very unorganized and at the end, it was down right lies and false promises before Father McCoy made out like a bandit. We were told to send products out and they would overnight us a check. We even had Father McCoy sign a personal promissory note and after we sent the products, all communication stopped. We are on a long list of vendors that are waiting to get paid. I understand companies go under, but to squeeze out more products the company never had the intent to pay for, well that is pretty malicious.
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