TL;DR: On the heels of RICK’s CEO and CFO getting indicted, the company created one of the wildest disclosure timelines I’ve ever seen, with a key shareholder getting bought out for a massive premium literally days before the CEO and CFO (who signed off on the transaction) “stepped down”….
This one is so crazy that you didn't even find it necessary to mention the ADW buyout at a 50% premium was done with 8MM cash and 22MM of seller financing @12%. I guess if you can't get all cash, converting your equity into debt when revenue is diving and the C-suite is under indictment for tax fraud and bribery charges is not a bad way to go.
Great point! Mentally I meant I've never seen comps this bad in a restaurant / food concept, but honestly even a retailer hitting comps this bad is pretty rare (It took JCP basically telling their core customer "don't shop here" to get that bad)
This one is so crazy that you didn't even find it necessary to mention the ADW buyout at a 50% premium was done with 8MM cash and 22MM of seller financing @12%. I guess if you can't get all cash, converting your equity into debt when revenue is diving and the C-suite is under indictment for tax fraud and bribery charges is not a bad way to go.
+1 For "craziest 8-K of the quarter” write ups !!
someone completely forgot all the years of 'these are rare professional managers in a grungy industry' from multiple bloggers\investors.
-19.5% comps are pretty bad for Bombshells, but JCP put up a -26% SSS back in the day
https://www.cnbc.com/2012/11/09/jc-penney-turnaround-in-doubt-as-sales-plummet.html?msockid=1c302391d69563690da33083d70562fb
Great point! Mentally I meant I've never seen comps this bad in a restaurant / food concept, but honestly even a retailer hitting comps this bad is pretty rare (It took JCP basically telling their core customer "don't shop here" to get that bad)
Seared in my memory because I owned JCP at that time - not fun!
Love this!
fascinating lol