News: Colby -Fiesta Corp. goes
from boom to bust (Feb 1982)
Contact: Kathleen E. Englebretson
Email:
kathy@wiclarkcountyhistory.org
Surnames: Outlaw, Perkins, Byrnes, Ricklefs, Firnstahl
Wausau Daily Herald (9 February 1982)
COLBY -- (by Jim Elliott) The United States flag waves in the breeze over the
nearly-empty parking lot and snow banks try their best to hide the company sign.
Things have changed at the Fiesta Corporation, Colby's former rising industrial
star.
Production was halted at the plant in October, a move that put up to 138 workers
out of work at that plant and at four smaller ones in Spencer and Hancock.
The situation today is in sharp contrast to the warmer days of summer, when the
Colby plant was operating 20 hours a day, with about 60 people busily pumping
out heaters and air conditioners under multi-million dollar contracts with the
U.S. Army and Air Force.
But on November 10, the company filed in U.S. Bankruptcy Court in Eau Claire for
reorganization under Chapter 11 of the bankruptcy code. With creditors lining up
to collect at least $2.7 millions in debts, future prospects for the
once-buzzing young company don't look bright.
Nobody's publicly saying what happened to change the fortunes of the Fiesta
Corp. around so drastically. But there is no doubt that the company's colorful
president, J. Raymond Outlaw, is positioned solidly in the center of the storm.
In Milwaukee, FBI Agent George Perkins said, "We can confirm that we are
conducting an investigation of fraud against the government against the Fiesta
Corporation and Raymond Outlaw, its chief executive."
Perkins would give no details about the probe, but said Outlaw is aware of the
investigation.
No charges have been filed. and U.S. Attorney John R. Byrnes, Madison, said the
next grand jury isn't scheduled until February 23. If any federal charges were
to be filed against Outlaw, they would have to come before a grand jury.
Outlaw has become a controversial figure in Colby and in other parts of the
country, where he has had a checkered career.
The 37 year-old Outlaw left North Carolina to join Fiesta as a sales
representative in 1976, when the firm was located in Hancock, in the sand
country south of Stevens Point. The company made picnic grills then, doing about
$400,000 worth of business a year.
A good salesman, Outlaw managed to sell more more grills than the company could
produce, and wound up buying Fiesta under a handshake deal -- He would have to
pay only if he made the firm profitable.
Outlaw accomplished that objective -- at least for the short term.
He had a plan: drop the picnic grills and go after something big. He found it in
federal defense contracts, a field that was more accessible to him because with
Cherokee blood in his veins, he qualified for special advantages as a minority
small businessman.
Next he needed a plant. He quickly found there were plenty of people trying to
attract industry in Wisconsin. He met with Tom Ricklefs of the Marathon County
Economic Development Council, who in turn introduced him to Paul Firnstahl of
Colby.
Firnstahl and his wife had a private firm, Community Industrial Developers Inc.,
which raised funds through the sale of Debentures to attract industry to the
small town on the western edge of Marathon County.
"We put a little of our money together to build a building, then we located an
industry," Firnstahl said. That industry was Fiesta, which had a brand-new
36,000-square-foot building to its specifications.
Fiesta was given an attractive lease, with an option to buy. And Outlaw did buy
it, in July of 1981, and in his own name -- not Fiesta's. He now leases the
building to the corporation.
Firnstahl declined to say how much he was paid, but said, "We told him this was
the cost of our building. We did not try to increase the price to Ray at all."
Today, Firnstahl said, the building alone would cost upwards of $25 per square
foot -- or about $1 million.
So Fiesta had a fine, modern plant at low cost. and when Outlaw obtained a
contract with the Army in 1978 to build portable heaters, he was in business,
After the first contract order was signed, others soon followed. Government
orders eventually amounted to $9 million with the Army and similar ones with the
Air Force totalling $7 million. The heaters are valued at $2,280 apiece, and the
air conditioners are worth $4, 498 each.
Everything was rolling right along. But then the government stopped its payments
to Fiesta this year, and Fiesta skidded to a halt.
The government stopped its "progress payments" to Fiesta, mainly because
deadlines for software such as instruction mauals were not met, according to ab
Army spokesman.
Fiesta also owes the Internal Revenue Service more than $166,706 in withholding
taxes.
It now appears that whether Fiesta reopens or not depends on whether the firm
can settle its differences with the government -- and the key to that settlement
apparently hinges on J. Raymond Outlaw.
*****************************************************************************
News: Fiesta Corporation
#2 (1982)
Contact: Kathleen E. Englebretson
Email: kathy@wiclarkcountyhistory.org
Surnames: Outlaw, Firnstahl
---Source: Wausau Daily Herald (10 February 1982)
Outlaw, J. Raymond
J. Raymond Outlaw doesn't scrimp when it comes to his surroundings.
He lives in a $500,000-plus home in Hillsborough, North Carolina, about 15 miles
out of Durham. Called the Twin Oaks Ranch, his 100-acre spread includes a
17-room house, a 3,050-square-foot caretaker's house nearby, and a rich hardwood
fence around the entire ranch.
Or consider his opulent office at Fiesta Corporation's Colby headquarters. It is
furnished with fine paneling and wall paper. A bearskin rug and several stuffed
animals are displayed prominently. A private restroom, with a show, is also
included.
A viewer can't miss the huge diamond ring on his finger.
And it has been reported that he gave a man in North Carolina a new Lincoln
automobile as a way of expressing his gratitude?
It seems incongruous then, that his firm is in federal Bankruptcy court, listing
debts of $2,7 million and undetermined assets.
What ever Outlaw has accomplished, he's always done it with a flourish.
In an article published last May in the Durham, North Carolina Morning Herald,
Outlaw revealed somethings about his life that he later said even his children
hadn't been told.
Like the fact that their father, the same man who is the president of a
Wisconsin company and had been paying himself $50,000 per month, is a convicted
armed robber who served time in a South Carolina prison.
The paper reported that Outlaw, as a young man from a poor family, was a fighter
who quit school in the ninth grade and later got kicked out of the Army. Outlaw
said he hustled cards and pool for a living before getting caught for breaking
into a cabin to get whiskey He got probation that time, it was seven years in
prison for armed robbery.
It's old history, but it's true, Outlaw told the Daily Herald reluctantly in a
phone interview from his North Carolina home.
Now 37, Outlaw says that the incident occurred 18 years ago and he is trying to
put that part of his life behind him.
In fact, when he filling out an application from the Small Business
Administration, he now admits that he lied about his criminal record.
"I didn't think it was their business. I paid dearly, and my family paid
dearly," he said. Now, he says, the FBI is investigating him and that effort to
hide his past is the reason.
"I asked them (the FBI) one question," he said. "If I was not an ex-convict,
would the case still be open or would it be closed?' He said it would be
closed."
Outlaw commuted to Colby to oversee the operation of Fiesta but hasn't been
there much recently. In an interview last spring, he told the Durham paper he
changed while in prison after he started to read the only thing available-- the
Bible. The change was noted by J. W. Strickland, assistant director of the South
Carolina Department of Corrections, who was warden at the state prison in
Columbia when Outlaw was sent there.
At first Outlaw was a problem inmate, but then he changed dramatically,
Strickland said. The warden took an interest in Outlaw and helped arrange for a
work-release job at a hardware store. It was there that Outlaw discovered his
ability as a salesman.
The hardware chain sent him to manage two struggling stores in Raleigh and
Durham, where he turned the businesses around. But his first business problems
occurred when he started Hillsborough Appliance Center, then invested borrowed
money in a new type of fishing rod designed by a relative.
Both enterprises failed, and Outlaw left Hillsborough in 1976 with debts of
$250,000. Those debts have since been repaid, according to the Durham paper,
which it said it checked with the banks involved in that action.
In 1976, he joined Fiesta as a salesman, and within a short time became the
company's owner and president.
"Ray is very outgoing," says Paul Firnstahl, a Colby industrial developer who
built Fiesta's building.
"He's a promoter, and no promoter will be content sitting in the background. But
his promotional desires may have exceeded his abilities."
At the time Outlaw was considering a move to Colby. Firnstahl checked on his
financial statements. "Even though they were not real good, sound ones that
financial institutions like to see, they were such that we felt he could make a
go," Firnstahl said..
Firnstahl, who is production control manager of the Packaging Corporation of
America container plant in Colby, also knew that Outlaw had a line on defense
contracts because of his minority status as part Cherokee Indian.
That lineage along with the belief that Ronald Reagan would be elected president
led Firnstahl to look more optimistically upon Outlaw's business proposals. With
Reagan's well-known views on defense spending, " the potential was definitely
there," Firnstahl said.
However, Firnstahl didn't check into Outlaw's personal background, and thus did
not know he was a convicted felon. It might not have made any difference anyway,
he said, because Outlaw had apparently changed.
***********************************************************************************************
News: Fiesta Corporation
#3 (1982)
Contact: Kathleen E. Englebretson
Email: kathy@wiclarkcountyhistory.org
Surnames: Outlaw, Uren, Wittmeyer, McMahon, Firnstahl, Ricklefs
---Source: Wausau Daily Herald (11 February 1982)
Fiesta Corporation #3
The federal government's policy of giving minority businesses a break came in
handy for J. Raymond Outlaw, president of the Fiesta Corporation.
And the small company got further favors from a small Marathon County community
that was trying its hardest to attract new industry.
Outlaw's great grandmother was a Chrokee Indian and that is enough to qualify
his business being "owned and managed" by a minority in the eyes of Small
Business Administration (SBA) and other federal agencies as well.
According to Joan Uren of the Madison SBA office, Congress passed a law several
years ago requiring that the government, when issuing federal contracts, make a
"best effort to give a given percentage to small businesses that are minority
owned, controlled and actively managed."
Under subsection 8 (a) of the law, firms owned and managed by minorities who can
show they have been discriminated against socially and economically in business
practices will receive special "set-asides" from contracts with other
businesses.
That program is intended to assist minority businesses in becoming
self-sufficient. Once they are competitive, they are released from it, Uren
said.
Fiesta Corporation is an "8 (a) contractor", she said. And yet, it has not
received any contracts that way, said Anthony McMahon, branch manager of the
Milwaukee SBA office.
"All the government work they got was on a competitive basis," he said.
Jim Wittmeyer, a public affairs officer for the Army, also said that none of
Fiesta's three Army contracts were set-asides. The first contract was written in
1978, but the other two were made in 1981 and are still pending, he said.
(Outlaw told the Daily Herald that he has participated in more than 3,000
federal contracts, some big and some small.)
If Fiesta didn't get the contracts through the set-aside program, how did
Outlaw's Indian heritage aid him?
All federal agencies have targets to meet when it come to dealing with minority
businesses, McMahon said, They try to let as many contracts to such firms as
they can.
The agencies sill must consider a firm's capability to do the work, quality of
the product and price. But if they establish a track record, as Fiesta
apparently did with its first contract, it opens the way to bigger contracts the
next time around, McMahaon said.
Outlaw claims his Indian background did not have any impact on Fiesta's current
government work, but could have had an effect on future contracts.
So with a future apparently bright with federal contracts, why is Fiesta in
financial trouble?
It's a question that many in Colby are asking.
Fiesta's groundbreaking on August 3, 1979, was a time of great hope for Colby's
1,100 residents.
Today those people are "Very disappointed in the outcome of Fiesta," said Paul
Firnstahl, who was directly involved in bringing the firm to Colby, "A great
many of our local people were banking on it to bring a boost to our economy."
Firnstahl, who heads Community Industrial Developers Inc., built the Fiesta
plant and leased it to the young firm before selling it to Outlaw last year.
In addition to providing Fiesta with an attractive purchasing package, Firnstahl
did the company another big favor too.
"We had a hiring bee which we advertised in the local papers," he recalled. He
and his wife, Loraine, sat from 5 p.m. to midnight Friday and from 9 a.m. to
2:30 p.m. the next Saturday taking more than 500 applications for jobs. They had
expected around 100.
Applicants came in from Spencer to Medford and from as far east as Wausau.
Mailed inquiries came in from all over the country, with applications eventually
numbered about 700. Firnstahl felt his donated time on behalf of Fiesta was well
worth it.
"We felt we should have a very strong selling point in the future," he said of
the response, "And it's still true today -- there is no problem with a capable
work force."
At Packaging Corporation of America, Colby's biggest employer, the turnover rate
is less than 3 percent per year, which Firnstahl, who is production control
manager for the company, called an "exceptional" figure.
"I felt very strongly that this company could have made it here in Colby,"
Firnstahl said. "And when we have circumstances that seem to be surfacing, that
indicate poor business practices, it gets me pretty angry...it's a letdown for
basically everybody in lieu of all the publicity about government contracts and
the shipment of goods.
In particular, he recalled a TV interview Outlaw did on August 28, 1981, when a
huge Air Force cargo plane flew into Central Wisconsin Airport to pick up a load
of Fiesta's heaters. The Daily Herald prominently displayed the story, with a
photo, the next day as well.
At that time, Outlaw spoke enthusiastically of the $9 million contract that the
firm had acquired with the Air Force and said the firm was negotiating for an
additional $14 million worth of business.
On that occasion, Tom Rickelfs, executive director of the Marathon County
Economic Development Council, said the future looked good for Fiesta.
The company has a good reputation with the government for meeting quality
standards and deadlines. Richlefs said he was told by a government
representative during the airlift.
Why then, is the factory idle today?
Joseph J Petrillo of Washington, the bankruptcy court-approved lawyer in the
Fiesta case, told the Durham, North Carolina Morning Herald that government
regulations may have tripped up Fiesta, a fate, he says that is not unique to
small companies trying to get a share of the nation's defense business.
Very few small business are equipped to handle the government paperwork required
or even to begin to know how to do it, he said.
Outlaw told the Morning Herald that the government's General Accounting Office
had thoroughly investigated Fiesta.
"They didn't find us 100 percent Kosher," he said.
"They found out we hadn't been keeping corporate minutes, They found other
problems. I figured I was 100 percent owner, so I could do what I pleased, I
couldn't."
**********************************************************************************************
News: Colby - Fiesta
Corporation #4 (1982)
Contact: Kathleen E. Englebretson
Email:
kathy@wiclarkcountyhistory.org
Surnames: Moore, Gettleman, Outlaw, Ricklefs, Hittner, Kubasta
---Source: Wausau Daily Herald (12 February 1982)
Fiesta Corporation #4
When a company goes bankrupt, those who loaned it money are often left sitting
in the cold when it comes to getting their money back.
That's what some of the creditors of the Fiesta Corporation, Colby, fear might
happen to them now that the company has filed for reorganization in the federal
bankruptcy court in Eau Claire.
Creditors have filed for a total of $2,7 million from the firm, which in
addition to its headquarters in Colby has two plants in Hancock and two plants
in Spencer. Final assembly and painting is performed in the Colby plant; the
Hancock plants are a "valve line" plant and a metal fabrication plant, and the
Spencer buildings are used for storage and shipping.
Though the other plants closed down in October, the Hancock plant had been
producing some small orders. Jim Moore, manufacturing engineer for Fiesta, said
the plant would be closing down this week but is expected to go back into
production soon.
Among the seven largest unsecured creditors, who are not protected by mortgages
or other forms of security, is Wausau Steel Corporation.
Bankruptcy court files show that Wausau Steel is owed $38,868.
Wausau Steel is among a number of companies who are claiming a total of
$1,971,133 in unsecured debts. The creditors include MKI Industries, Chicago,
$350,141; VBM, Louisville, Kentucky, $144.072; Thill Inc., Oshkosh, $127,056;
Flexfab Inc., Hastings, Michigan, $115,554; and Stolper Industries Inc.,
Milwaukee, $83, 877.
There is a trail of other Marathon County firms among the unsecured creditors
who are owed lesser amounts.
There is another $728,569 in secured debts, of which the Security State Bank,
Colby, is listed for $322,841. Other creditors include M&I Peoples Bank, Coloma,
for $229,890, and First American National Bank, Wausau for $2,880.
Then there are the priority debts, which take precedence over all others.
Those priority debts include taxes -- $166,706 in withholding taxes owed to the
Internal Revenue Service and $36,762 owed to the state of Wisconsin -- and
salaries of $9,870 earned by employees within three months of the date of filing
for reorganization.
"it is possible for all debts to be taken care of, but there's not too many
bankruptcies where everyone comes out whole," said Chad Gettleman, a Chicago
attorney who represents the creditors committee, composed of the seven largest
creditors, including Wausau Steel.
"We are monitoring (Fiesta's ) operations and have retained an accounting firm
to attempt to ensure the committee and all unsecured creditors that the
operations that are currently going on are being done, prudently," Gettleman
said.
The committee is trying to account for all incoming and outgoing funds. Fiesta,
meanwhile, is required to report to the bankruptcy court twice a month on all
cash receipts and disbursements and is supposed to file a plan for
reorganization by March 10, a deadline that can be extended or shortened.
At a meeting in Wausau on December 16, the committee cross-examined Outlaw,
questioning him about past, present and future operations of the company.
Privately, one attorney has already told his client company to write off the
loss because he doesn't expect it to be able to collected more that $100,000
it's owed.
"When I see $1.8 million of creditors lined up and no assets the guy (Outlaw)
has that I could nail down, I tell them to get out," said the attorney, who
asked that his name not be used.
Although the Marathon County Economic Development Council was instrumental in
bringing Fiesta to Colby, there are no public funds tied up in Fiesta.
"There are no financial incentives from us. We try to work out problems, like
with water connections, but we don't have anything to do with financial
inducements," said Tom Ricklefs, executive director of the council.
The Security State Bank, Colby, is owed $322,841 on a mortgage, but it has
collateral in the form of equipment and inventory. The bank's attorney, Peter
Hittner, Schofield, said the bank is attempting to work with Fiesta and is not
"pulling the pin and hollering wolf."
The bank has the option of petitioning the court for a release from an automatic
stay against creditors attempting to collect from Fiesta. The stay was handed
down by the bankruptcy judge as part of the reorganization procedure.
Hittner said the Colby Bank has no plan at this time to do that, but will wait
to see how the company's reorganization plan will handle Security's debt.
But another bank, M&I Peoples Bank, Coloma has filed such a petition, That bank
has a mortgage of $229,890, covering Fiesta's Hancock plant, machinery,
equipment and inventory.
The Coloma bank has also asked the court to subpoena all records of payments "to
and for the benefit of Outlaw," said its attorney, Tom Kubasta of Wautoma. He
said he would drop his motions if a trustee were appointed to watch over the
company, but that hasn't been agree to by Fiesta's attorney, Daniel Zazove of
Chicago, Zazove in turn, has asked the court to dismiss the Coloma bank's motion
and quash the subpoena.
Except for the Coloma bank, Fiesta's creditors appear to be waiting to see how
the reorganization plan will affect them.
Outlaw says that he's far from broke or finished with Fiesta.
In an interview with the Durham, North Carolina, Morning Herald, he said he has
taken steps to get the firm back in operation. Because of government
investigations of his business, the government has withheld large payments on
his contracts, leaving him in a cash-flow bind.
That, he says, has resulted in delayed payments to his suppliers and creditors.
Currently, he says the firm has "total liabilities of about $7.2 million. We
have total assets a little under $11 million. We have a positive net worth of
about $3.8 million."
"I'm not broke," he told the Morning Herald. "I'm bent like hell, but I'm not
broke. I still have $29 million backlog of work. We've sold over $800,000 in
contracts this month (January)."
However, an Air Force spokesman at the Pentagon said Thursday that the Air Force
on February 5 notified Fiesta that a $6,471,520 contract was being terminated
"due to delinquency in required delivery times."
The Air Force signed a contract on March 30, 1979 for 1,706 portable heaters,
with an option to buy 300 additional units, said the spokesman, a lieutenant who
asked not to be identified by name. That option was exercised, bringing the
total to 2,006 heaters. But 1,311 heaters were never delivered, or remain
outstanding, the lieutenant said.
He said a review of Pentagon records shows the Air Force has no other contracts
with Fiesta of more than $10,000.
***************************************************************************************
News: Fiesta Corporation #5
(1982)
Contact: Kathleen E. Englebretson
Email:
kathy@wiclarkcountyhistory.org
Surnames: Outlaw, Firnstahl, Petrillo, Moore, Gettleman, Hittner
---Source Wausau Daily Herald (13 February 1982)
One might think J. Raymond Outlaw would be scared to death by the financial
picture of his company, the Fiesta Corporation. Although Fiesta has filed
reorganization in federal bankruptcy court, Outlaw seems a lot less worried
about the future of his business than the creditors who are lined up at the
company's door.
"I've got all the confidence in the world," he said in a phone interview when
contacted at his Hillsborough, North Carolina home. "The only reason Fiesta
wouldn't survive is because of bureaucrats."
Although the company's main plant at Colby was nearly deserted during a
reporter's visit on January 28, Outlaw said in the February 2 interview that the
staff was restructured and operations there were back to about 20 percent of
capacity.
Paul Firnstahl, who built the building that houses Fiesta's headquarters in
Colby, said the plant was about a month late.. But he said the delay was caused
because Outlaw changed his mind on a number of things inside the plant.
"We've called some people back to work and we're back in production," Outlaw
said. "I expect by the first of April to be back in full production."
However, a check with Colby officials that same day revealed that only a few
salaried employees were on hand at the plant and no hourly ones were working at
all.
A source close to the company said the two Hancock assembly plants had just
finished up some work, but were now closed. He said those two plants should be
back in operation soon.
Outlaw said the company has $11 million in assets, and that even with
liabilities of some $7.3 million, it sill has a large net worth. The only real
problem is a shortage of cash, he said.
"I've been out many days trying to get additional financing," Outlaw said,
adding that he didn't yet have such financing arranged. He's also trying to
renegotiate his Air Force contracts to make them more profitable, he said.
What happened to the company that in August was pleased to report that it was
shipping out its portable heaters by Air Force cargo plane?
According to Outlaw, the firm got caught in a "loss contract" in which it
produced over-engineered heaters at a loss of $1,000 apiece. It then sold the
Federal government spare parts worth $1.2 million at a cost of only $954.00.
"Believe me, that hurt," Outlaw said.
Joseph Petrillo, the Washington, D.C. attorney who is the court-approved
bankruptcy lawyer in the case, agrees with that assessment.
Petrillo told the Durham, North Carolina Morning Herald in January that the
renegotiation of both contracts is important to the future of Fiesta.
"If you can solve the difficulties with these two contracts, Fiesta Corp. is a
very viable company," he said.
However, on Thursday of this week, an Air Force spokesman said that the
contracts had been terminated and that Fiesta had been notified of that on
February 5. In addition to its contract problems, Fiesta also fell six months
behind in production, Outlaw says, partly because the plant wasn't built on
time, its spray painting booth was not completed on schedule, and the supplier
did not meet their timetables. There were also management mistakes, he admitted.
"Anytime you deviate from the plans, you'll have delays," he said. Furthermore,
the company did not move into the plant right away after it was built, Firnstahl
said.
Jim Moore, Manufacturing engineer at the Colby plant, said the firm "got a
little behind" because of changes in the ventilation and electrical systems. The
finishing touches were still being put on the plant when Fiesta moved into it in
February, 1980, Moore said.
As a result of delays in meeting deadlines, and because investigations were
being conducted by the General Accounting Office and the FBI, the government
held up its payments for four months,
"We just got a fairly large check last week," Outlaw said.
Outlaw says that he had made some personal sacrifices in an effort to keep the
firm in production, One of those measures was to reduce his salary to $24,000 a
month - it used to be about twice that amount, he said.
If the company goes bankrupt, he'll go bankrupt, right along with it, Outlaw
says. He is personally guaranteeing the notes of the company, he said, and, as
the firm's only stockholder, has money of his own invested in the company.
Chad Gettleman, attorney for the creditors' committee monitoring Fiesta, said
that ordinarily corporation stockholders are protected from its creditors
claims. Thus Outlaw would not necessarily go bankrupt if Fiesta does. Gettleman
said he did not know if Outlaw has personally guaranteed the notes of the
company.
What is Outlaw's assessment of the future of Fiesta?
"I haven't even begun to fight yet." Outlaw said, adding that he's trying to get
political help in fighting his case.
Outlaw says his competitors for government contracts are claiming that Fiesta
has violated the "Buy American Act" which allows defense contractors to buy only
40 percent of its materials from outside the continental United States.
And the Small Business Administration, from whom he obtained a $150,000 loan, is
angry with him because he failed to list his past criminal record on one of its
forms, he said.
Fiesta buys "quite a bit from Korea" and gets its diesel engines from England
because there are no diesels of less than 10 h.p. produced in America, he said.
And yet the Air Force's specifications call for just such an engine, he
complained.
Outlaw maintains that he obtained $23 million worth of contracts with the Army
and Air Force strictly through competitive bidding, and that in the process his
lower prices saved the taxpayers and the government more than $4 million.
"There's been that much difference between my bid and the next highest ones." he
said.
Colby was a key to that difference, he admits.
Outlaw says he was able to deliver his products cheaper by assembling them in a
more remote area, thus escaping the higher wages demanded by workers in large
cities. His workers were also much more productive, he believes,m partly because
the working conditions in his modern plant were good.
"I also owe a lot to the Security State Bank (in Colby)," which he said was
sticking behind him. The bank's attorney, Peter Hittner of Schofield, agreed the
bank, which has a $322,00 mortgage was attempting to work with Fiesta.
The same is not true of the M&I Peoples Bank in Coloma, he says.
One point in Outlaw's favor is that he's never gone bankrupt before, even though
he's been to the brink. He left Hillsborough, North Carolina, in 1976 owing
$250,000, but subsequently repaid those debts. Actually, the bank had already
written off what he owed as bad debts, but he hired a lawyer to get them back on
the books so he could have a clean record, Outlaw says.
"I've had to fight for everything I've had," he said, recalling his poor
childhood on a cotton far. "I have to fight right now too; every day I get up I
have to fight. I'm on the phone all day long."
He said he's trying to get a full pardon from the government of South Carolina
for his armed robbery conviction to "wipe the slate clean."
He vows that Fiesta will continue, and that he has no intention of getting out.
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