https://seekingalpha.com/article/4092981-need-tender-staples?auth_param=1duelb:1co0k6n:2c7d38f4a5587055d458cca33f5c3f8e&dr=1
The value is less than what Staples could or should get. Shareholders should say NO to the deal or file a class action against Staples. SG should be held accountable.
The biggest thought missing from this thread is the consumer. The consumer, and businesses alike, are the main reason for the retail bubble bursting, as they now have specific prerequisites:
They require the highest quality, based on perception, at the lowest cost.
They are willing to wait for the above, as opposed to going into a store to get it "now".
They don't want to actually go into a store to acquire their goods. They want high quality products at low prices, and they want it to come to their doors, giving them more time to spend on other activities.
Considering this, other than satisfying the consumer (Staples' delivery, contract & commercial, and enterprise services), retail can't accommodate their needs. Why? Because, brick and mortar stores and the costs associated with them, including property costs and human resources (employees - people) drive the price of goods up, setting up retail stores to automatically lose to the competition that can accommodate consumer demands (on-line marketplaces).
They're all focused on a big payout while pinkslips are handed out to the rank and file.
As far as Harvard MBAs are concerned, one of the worst bosses I ever had graduated from Harvard Business School. No leadership skills, no communication skills , no business sense.
As far as saving retail, I'm sorry for all those that gave their blood sweat and tears to Staples but it's not worth saving. Get out now. Can't wait to see all the DMs and RVPs let go. Hopefully Sycamore or OD or who ever takes over stores kills their severance packages
"That will be a case study for the ages for business schools everywhere. As a professor I am fascinated by this transaction."
You do realize professor that the clowns running this circus are all MBAs from the likes of Harvard, Sloan, and Wharton. Not a great representation of intellect for the supposed "creme de la creme" of American business school elite.
Then again our current POTUS went to Wharton too and we all see how well he's doing.
Have great day Professor. Say hello to Gilligan, the skipper, and the rest of the castaways on "Having an MBA doesn't make you good business person or leader island".
Sycamore can't risk losing on this deal. If Staples doesn't pan out for this investment it could sink both. That will be a case study for the ages for business schools everywhere. As a professor I am fascinated by this transaction.
Considering Staples is losing $500 million per quarter in retail, it would be in the shareholder's best interest to say yes to this deal. Saying no will lead to the eventual demise of the retail channel.
Sycamore is paying a premium for Staples' non-retail assets, citing their intention to sell retail to Office Depot. Retail is of no importance. Office Depot is rumored to then truncate retail in its entirety, and eventually sell its retail assets (the combined Office Depot and Staples stores that are left) to Amazon.
This must happen in order for retail stores to survive. If the deal doesn't happen, it'll result in the bankruptcy of both Staples and Office Depot.