Thread regarding Follett layoffs

So, is it just a rumor about St Norbert's or is the store definitely closing?

The website for Cardinal Stritch store has already been taken down - "campus store cannot be found or is no longer serviced by Follett". St. Norbert's is still up, for now.

Cardinal Stritch in 40 is closing. St Norberts too?

WOW!

Region 40 - Wisconsin

St Norbert's?
Which region?

St. Norberts, but idk if that's what they're talking about.

So what store closed or lost contract & which are going to close?

More stores will close in the coming weeks.

Which?

It's happening, one of the portfolio stores is closing

The entire problem is the "bookstore contracting model" is obsolete. The internet changed the rules. The publishers are changing the rules with digital. Access is just a program that was created in 2006 to take advantage of students and benefit the schools and Follett. Kind of like adding a fee to every digital book you buy for no additional benefit to the student. As the market declines, Follett will continue to look for ways to take advantage of the captive student. The smart students have already moved on to Amazon and others.

Yep - if you have an honest RM they will tell you that’s how it goes

get contracts at any cost and it’s up to Operations to figure out how to make them profitable with those terms

WOW, do they teach that in the MBA Programme at the Kellogg School of Management?

I am not a smart man but I know what poor management is!

Our MVP has said for YEARS that it’s her job to get contracts at any cost and it’s up to Operations to figure out how to make them profitable with those terms. The management fee approach is something we’ve done for a while and while it seems smart, it’s always way too late and there’s no way to recoup the amount of money we have already lost at these stores. It’s more of a tactic to get out of a contract than anything else.

I think this is a systemic problem going back years. Nothing new. Probably since TC retired.

When the mission statement changed to We value the privately held family stock and strive to make it worth more.

Any idea how many stores? Have more schools been added since March? Was there a third option of virtual store?

It seems as if RM's, AVP's and upper management got bonuses based on number of contracts not on can we run the store and make a profit. Anyone old enough to remember the Four Cornerstones? PROFITS ARE ESSENTIAL! Not sell a contract, take your bonus, and figure out how to break even by screwing you your staff. The DG model! We'll sever you well with our PT staff that are working for minimum wages and no benefits!

The two latest high-profile contracts, NYU and VTU, have proven to be money pits. The people that negotiated those contracts should have been fired. The same with PIMA and Valdosta.

This is smart if true. We run too many operations at a loss.

Hmmm. I remember when TC came on board at FHEG he referenced the stores as our portfolio and he eliminated a number of under performing stores as not a good thing in our portfolio. Kind of like divesting one's stock portfolio of under performing stocks. There were two very high profile stores that I believe were being operated at cost as advertisement of FHEG being a big time player in the college bookstore arena. Doesn't take a rocket scientist to understand that operating a store at a loss isn't a good thing. Maybe management philosophy changed after TC retired? Kind of like remodeling someone else's building at a huge financial cost to play big shot and tell everyone it's better than Google! Looks like Follett management made some really bad strategic decisions.

MVP's have made such awful deals, they acted like desperate fools. Nobody questioned the details, only the gross revenue.

Agreed. This seems like a smart move. Get rid of the stores who can't turn a profit, or force the campuses to do more. Seems like a no-brainer.

Seems like a prudent move, not one that will cause us to take on more water, but some see (hope for) failure at every turn. What business agrees to operate a store for the customer at a loss? If the university wants a bookstore, and running one is a losing proposition, they can subsidize it. Happens in every other service provide on college campuses, from running the stadium to cleaning the dorms. Why did it take so long seems like a more logical question than More gleeful prophecies of doom, but hey you’ve all been here calling the bankruptcy wrong for years and years, why quit now. Eventually you may be right.

Yes that’s what they are traditionally called.

What's a portfolio store? Stores that don't make money but Follett wants to keep because of the name/prestige/whatever?