Tag Archives: funeral industry decline

Former Funeral Director charged with Defrauding-YourFuneralGuy

17 Jan
NEW YORK - NOVEMBER 20:  Funeral director Pete...
Image by Getty Images via @daylife

A former Funeral Director in Michigan has been charged with defrauding Customers. In this case The director not only hurt the families that bought preneed or prepaid policies he also hurt the former business owner of the Funeral Home.

This serves as a warning to those who want to exit the funeral industry and the need to check out who and how they dispose of their business.

Mr. Prochnow had purchased the business portion of the Bennett Funeral Home on S. Dixie Hwy. just south of Albain Rd. in 2006 from Darrell Bennett, who retired with his wife to Florida after selling the business.
But Mr. Bennett, now 78 years old, said monthly payments were not paid and he discovered other payments for services were ignored. Over the past several years, he said he personally lost a total of about $325,000 to bad business. When he returned from Florida this summer to take over operations, the company was in shambles.
Mr. Bennett said the building was not properly cared for — there wasn’t hot water — and the vehicles, including the hearse and limousine, were being repossessed though he had paid them off 10 to 15 years ago.
“I can never imagine anything of this magnitude ever happening,” Mr. Bennett said. “It’s put me in the biggest hole I’ve ever been in my lifetime.”
In addition to accusations of stealing money from Mr. Bennett, Mr. Prochnow has been charged with accepting prepaid funeral payments and using the money for his own benefit.

via www.monroenews.com

This shows that just taking a bank note may not be the best strategy, may not be the best strategy in exiting the funeral business- in an age of Funeral industry decline, when profits are down and cremation is on the rise.

Funeral industry| Funeral News | funeral blog by Your Funeral Guy

This article presents one more reason as to why one should not purchase funeral preneed or aprepaid funeral.

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Hillenbrand( of Batesville Casket)continue to diversify-YourFuneralGuy

7 Jan

Hillenbrand Inc and the CEO Kenneth Camp, have acknowledged funeral industry and Casket sales decline.  The company executive has decided to live with the reality that is there. People are paying less funeral cost and many are continuing to live with the reality of the funeral industry decline.

Hillenbrand Inc. CEO Kenneth Camp might have been content for his company to stick to the casket business, given its predictability.

But with the public’s preference for cremation gaining on casket burials, he knew the company needed a new way to grow. Now, nine months after Hillenbrand closed on the $435 million purchase of Pitman, N.J.-based K-Tron International Inc., which makes manufacturing equipment, Camp is more convinced than ever that diversification was the right move.

“Batesville Casket will always be the bedrock, but we think it’s the right time for us to use some of our existing tools in an industry that can be another leg on the stool,” Camp said in an interview this week.

via www.bizjournals.com

Batesville Casket will continue to diversify in the years ahead. As the funeral industry declines, more alliances between companies like Batesville and other vendors will continue.

Funeral Industry|FuneralNews| Funeral Blog by Your Funeral Guy

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Morningstar, Stewart Enterprises point to Funeral industry Decline|yourfuneralguy

3 Jun

The Second Largest Funeral Corporation in the United States has received a lower credit rating from Morningstar. Stewart Enterprises International STEI, like many corporations simply has too much debt for a dying death care and Funeral Industry.

The rise of cremation written extensively about here seems to be a major cause of this situation. This is along with the indiscretions and instability of funeral preneed are making stable funeral industry revenue difficult.

Secular trends limit opportunities for growth in the death-care industry. First, medical advances are extending life spans. As a result, the Census Bureau estimates that the number of deaths will increase just 1% annually.

Further, cremation has become increasingly popular, with cremation rates rising from 32% in 2000 to 42% today. While death-care companies do generate revenue from cremations, it is much lower than traditional interment. As a result of these factors, we foresee very limited growth for the death-care industry and doubt that Stewart will be able to buck this trend.

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Morningstar is initiating credit coverage of Stewart Enterprises STEI with an issuer rating of BB. We think a combination of high leverage, negative long-term secular trends, and investment risk makes the firm’s debt a dicey proposition.

via quicktake.morningstar.com

Funeral industry} Funeral News |Funeral Blog by Your Funeral Guy