I didn't correct the OP, I called him a moron - as they obviously didn't have a clue...
11 replies (most recent on top)
What's amazing is 9 people have replied to your post and not one has corrected you. It was not $1B in credit card holdings sold off it was $1B in securities sold at a low interest rate so that CLUB could turn around and lend that money through the credit card at a higher interest rate. Those are two very very different things. It's a process that has happened dozens of times over the years. $300 million in 2014, $400 million in 2015, and now $1B in 2016. That is how financial institutions like CLUB make money. How did you think the credit card got money to lend out? Did you think a company worth $3-4B had credit card receivables in excess of $5B without securing it against debt????!! Or were you dumb enough to think that money grew on rare trees and CLUB just happened to have one?
There are a lot of delusional people that work for that company. I just had a supervisor in the Accounting department spout off the most ridiculous nonsense about how awesome Cabela's is and how her job/department is so important they are "safe" from additional layoffs. Her lips are constantly stained by the Kool Aide and she is extremely arrogant. I'm looking forward to seeing her escorted out of the building.
What is amazing is that it was a great company when It was handed to Dennis and then to Tommy. Tommy drove it into the ground and now he wants to bring it back. This is sooo absurd. Oxymoron of the ultimate example. Tommy, Brian, Charles and a host of others could be the main characters in the book the hatchet mans playbook. Sounds like clinton
What a scumbag. It's one big scam
A girl I work with said her husband is some big project manager and his job is safe. And Tommy is a genius! And that they are trying to go private again, making Cabela's a great company it used to be! Blah, blah blah, so forth & so on! Do you believe that sh--? screw all the people that they laid off & are going to lay off soon!
We have done this regularly.
You are making too much of this one. This was in the works a long time ago. I don't think they were planning a sale during the WOW period...
Interesting thought
If I were a betting man I would say the "buyers" couldn't swing it without dropping the value a bit. So what do they do? Sell off a cool billion of Debt to make it easier on the buyer.
IbsEKHe,
Were you born a moron or did it come about later in life?