Thread regarding Staples Inc. layoffs

The company was split into 3 parts for accounting purposes. Sycamore couldn't find investors willing to put money into all the areas, so they split the company so investors could allocate their funds where they wanted.

WTF are you talking about selling Contract accounts. You think big customers are just going to accept their new supplier. No chance of that. They are going put their contract out to bid. No one is going to pay Staples for accounts that could walk at a moments notice. When we purchased Capitol Office products we lost tons of accounts. Also, if Contract is going to be sold off in parts then why are corporate resources, objectives, and associate time allocation being shifted towards Contract?

Canada could easily be sold. They have the infrastructure to support themselves and they are in a good place relative to the competition in their market.

Whaaaattt???

Are you saying that @Rg2eQtI-1cfm is wrong?

But @Rg2eQtI-1cfm is always right!

I am not ignorant if thise facts- I just drink the cool-aid you could end up choking on.

Its entirely believable they could break up the company and sell it in pieces.

The facts are:

They already obtained financing for 3 separate business segments, this can be referenced with this link.

https://www.retaildive.com/news/staples-spinning-off-retail-business/449556/

Sycamore admitted "they never intended to buy Contract it Canada but the deal was too good to pass up"

The Retail business fits into their portfolio but Canada and Contract delivery does not fit which is why it's entirely plausible to believe they could sell Contract accounts- then liquidate other contract assets, do the same with Canada. Then they could "realign" retail with those companies you already mentioned.

I have used my brain. Sycamore is not a churn and burn PE firm. Here are the fact that you are ignorant of:

Sycamore Investments

Talbotts - Acquired in 2012

Hot Topic - Acquired in 2013

Coldwater Creek - Acquired in 2014

Belk - Acquired in 2015

"Why would a PE firm liquidate a company they just spent $6.9 billion on? Because they like flushing money down the toilet. Use your brain for one second."

Why don't you use your brain for more than a second- and educate yourself about P/E firms and how they make money.

You sound rude and ignorant.

"They were obviously not going to turn the company around into a thriving retailer. They see more than 6.9 b in assets that they can sell, including the ecommerce platform, real estate (Corp Office and FC's), remaining inventory, customer lists/contracts, etc."

Absolute truth!

Anyone can buy a house and flip it for profit. As long as the house is rotting but has some slight potential. The seller who's owned the property for ages can justify a lose due to disinterest in the upkeep. Or better put... lack of knowledge on how to maintain the property.

Next plan after this week’s layoffs to announce Framingham Corp office building sold?

Terrible that people got let go. The best thing everyone still there can do is start looking elsewhere! Don’t wait until it’s you.

as I said several months ago, if it's managed right, you can expect roughly a 10% cut each quarter until headcount is halved.

If you are willing to pay $6.9 billion for that paltry list of junk then I have bridge to sell you.

They were obviously not going to turn the company around into a thriving retailer. They see more than 6.9 b in assets that they can sell, including the ecommerce platform, real estate (Corp Office and FC's), remaining inventory, customer lists/contracts, etc.

Why would a PE firm liquidate a company they just spent $6.9 billion on? Because they like flushing money down the toilet. Use your brain for one second.

I wasn't being critical of people's ability to find a new job, I was just commenting on the amount of genuine shock people seem to have over the fact that a recently privatized company is looking to shed all the SG&A expenses and prepare to liquidate.

Stop being so self-righteous and show some compassion. Not everyone is in a position to jump ship and easily find a new job. There are many factors that limit people’s available opportunities.