It is not my intention to spread rumors because I do not have any reliable information, it is just my personal opinion. Take it with a grain of salt, but it could very soon happen that unprofitable stores get closed. My store is doing very poorly and I have no illusions that it will be saved.
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RSU's are not the only kind of stock you can get. It's just the most common you see.
These are the several different kinds of stock possible:
QSBS (qualified small business stock)
LTCG (long-term capital gains) Shares
Unexercised ISO (incentive stock options)
Unexercised NQSO (non-qualified stock options)
RSU (restricted stock units)
When you get stock in a private company, it’s called “restricted stock” and you can’t do anything with them except collect dividends. You pay taxes on those shares or sell some back to the company to cover the taxes. Until, that company either goes public or sells to someone else. If it’s the sale option, the purchasing company must pay you the current value of those stocks. Even private company stocks have value but they can’t be traded while private and are usually valued way less than they would be if the company was publicly traded. Bottom line, some people are still in line to get paid a lot of money in this transaction if Follett ever gave out restricted stocks.
Can someone smarter than me explain how there would be shares in a privately owned company? I'm d-mb, apparently.
Private companies can issue stock. Practically all companies start out 'private' until their IPO, if they ever decide to go public. It's very common for a lot of startups to offer stock on some vesting schedule as part of your compensation in the early going. The main difference between a 'private' and 'public' company in this regard is that the 'public' company's shares are publicly traded on a stock exchange, and the company is subject to all sorts of SEC regulations as a result.
Maybe this will help: https://www.investopedia.com/terms/p/privatecompany.asp
Can someone smarter than me explain how there would be shares in a privately owned company? I'm d-mb, apparently.
Also, yes, some unprofitable stores will likely be closed. But that's always been the case. Nothing new there.
I’ve been in a store that was closed. The corporation of a few days ago had no problem with closing it. Easy come, easy go. Maybe you are a bit safer for a bit longer with this new situation as opposed to the old.
Many questions to be answered.
What about the privileged few that owned phantom Follett shares?
Bought back at going rate? How do you know that is a good price?
Forfeit? That would be swell.
What about people that were part of the traditional retirement plan group?
Continue as is or will they set a value and buy you out?