MJS reporting Laser Monks fold printer supply business, abbey, Terry Nelson quoted

The abbey, now all but empty, is listed for sale at $2.6 million.
They were dubbed the Millionaire Monks, a small monastic community in rural Wisconsin feted around the world for its wildly successful Internet business selling laser printer inks and toners.

As recently as 2009, the Cistercian Abbey of Our Lady of Spring Bank was projecting annual sales of $3.5 million for its for-profit business, LaserMonks Inc. And their prior and chief executive officer, Father Bernard McCoy, was talking expansion - of both the company and the abbey. [oops]

Today, the monks' 15,000-square-foot home on 500 acres in Sparta is all but empty. They sold off their belongings - everything from furniture and farm equipment to religious artifacts - at an auction last month. And they have put much of their land and buildings up for sale.

LaserMonks ceased operating in the spring, though the abbey has since sold its name and customer list to a California firm.[check it out; lasermonks.com] And the monks have gone their separate ways. McCoy, who was touted as the LaserMonks' marketing genius, is now in Ireland, overseeing a community of nuns, according to a family member. Both she and the monks' lawyer said they did not know how to reach him.  [.... I don't like to be the rumor monger but I understand him to be on a non-voluntary sabbatical at their mother house... I thought that was in Switzerland.]

Attorney Kevin Roop of La Crosse, who represents the abbey, blames increased competition and the downturn in the economy for the liquidation of LaserMonks; and the dissolution of the abbey on the business failure and a dwindling interest in monastic life.

But the monks have a history of failed or attempted business ventures. And now their seemingly sudden change of fortune has raised questions about their business acumen and some say less-than-Spartan lifestyle.

"It's very troubling," said Terry Nelson of Minneapolis, a former Trappist novice who writes about monastic communities on a blog he calls Abbey Roads. "A year ago he (McCoy) was talking about growing vocations, building a new church. . . . And then it's just gone? How can a monastery just disappear?"

The details are not entirely clear, but one significant factor appears to be the abbey's debt. Since 2006, the monks have used their property as collateral to secure $3.1 million in mortgages, including a $1.4 million loan from the Valley of Our Lady Inc., a nearby community of Cistercian nuns, according to records on file with the Monroe County Register of Deeds.

The nuns' superior did not return a telephone call seeking comment. But Bryan Simonson, vice president of Stoddard-based River Bank, which loaned the abbey nearly $1.8 million over that time, said the notes were new loans and refinancings of existing mortgages and lines of credit opened for the monks' business and living expenses over the years, and that a portion of the debt has been paid.

Simonson and Roop declined to say how much the abbey still owes. But the banker said the monks have never defaulted on a loan and that he doesn't expect them to do so now.

"I hold the abbey in the highest regard," Simonson said. "They have a very viable exit strategy, and we do not expect to incur any losses." [... sooooo they did declare bankruptcy though...  I assume they are talking about the Cistercian nuns then...]
continue at Milwaukee Journal Sentinal

National papers are now picking up this story.  Very well done investigation Annysa!  I'll maybe give some more commentary in a few days.  Click the labels below if you are interested in the background.  I bet you will see the NYTes out there pick it up this weekend.

8 comments:

nhall51@comcast.net said...

The Cistercian Fathers coming to the USA have had many troubles from day one. They findly built the Abbey Church In 1929 with the help of (lay brothers) brown habits... A most beautiful Abbey Church and monastery. No longer had the need for the old Spring Bank Hotel located on the property. However the Hotel known as the Manor House was use by the monks until the move of 1984 as a guest house. I have no idea if it still stands as the Abbey Church and monastery was demolished and the local historical society has not answered my questions as to the old hotel on Lake Oconomowoc. As a member of the order of Cistercians in the late 60's and early 70's we had our share of problems. We farmed at that time, sold cheese, and live on the goodness of benafactors to our house. I left the Abbey in Jan. 1971 just before the death of Abbot Raymond Molnar, he was from Hungry and not very in touch with the community at large. I remember him well, respected him, however he lived apart from the community. I remember Fr. Joe, Fr. Gregory, Fr. Alred, and Fr. John the novice master. I also remember Frater Mike, Frater Martin, Frater Peter and many more, however we all ended up leaving the Abbey. Then later in the 80's came what would be known as the Laser Monks of Sparta who could not farm and ended our history on Lake Oconomowoc and ended out order in the USA ...It is my opinion they lived a life better than the common Catholic folk of Wisconsin and had to answer to God our Father. I left Spring Bank in 1971 and have lived as a Carmelite Hermit todate. I shall always live in the knowledge that Spring Bank gave me the courage & gift of Our Lord to move on and not have to suffer the end of the Order in the USA. God be with the O. Cist in Texas who live the life of the Black Benedictines as school teachers, my opinion not really monks... I have seen much in my life time, grown in the spirit of Carmel, but wonder daily where is my dear Abbot, Ramond Molnar,O. Cist. One who guided me to my contemplative life. God be Praised for growth !!! Brother Neal in my O. Cist days, Now know as Brother Jacob

nhall51@comcast.net said...

I trust the sisters, "Nuns" of the O. Cist. order will not suffer from the mistakes of the Fathers & Brothers of Spring Bank Abbey . . . Amen

Anonymous said...

Still waiting for your commentary ...

Anonymous said...

Well, two weeks have now gone by and I still haven't seen your commentary :-(

Badger Catholic said...

Anon, I have it flagged to follow up on. I've had some project pop up so not a lot of time to sit down to write. I didn't have anything earth shattering to say, just some thoughts with following this over the last year.

Anonymous said...

Well, it's now 5 months later, any hope for the long-awaited commentary?

Badger Catholic said...

I have no inside info, really. I was just going to talk a bit about the history, specifically Abbot Blaise who survived communist Hungary. I will do that post but I have not located the article. Nobody tells bloggers anything anymore, they all just want to get quoted in the MilJS, haha.

Anonymous said...

Hello,I was at Spring Bank Priory (before it became an Abbey.I remember Fr Raymnd Molnar quite well,My Favorite there at Spring Bank was Fr Joseph Van Broek.I was known as Brother Benedict (1958-1959)I
left Spring Bank and Join The Trappists In Iowa.