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Brit here, so I'm observing from outside. If they're cutting workforces and raising debt, I'd reckon this is the beginning of the end. Frankly, I think it's thr

Brit here, so I'm observing from outside. If they're cutting workforces and raising debt, I'd reckon this is the beginning of the end. Frankly, I think it's throwing good money after bad. I've taken a casual interest on some of the travails of the US retail sector, and I'd rate the odds as being against them.

mdavis6890 4y ago
Not necessarily - reducing the workforce and closing stores may well be a healthy consolidation. Taking on debt may perform the same function on the balance sheet. You should worry if they take on debt to expand stores or the workforce.
hotpotamus 4y ago
I worked for Ritz Camera back in the day and was mostly onto better things when they began this process, but I can say from my experience that there's really no coming back from it.
dragontamer 4y ago
AMD wasn't part of retail, but they cut like 20% of their staff in the high-flying tech field and then bet it all on Zen processors, and their "custom" projects (XBox and PS4/PS5). Needless to say, it worked out for AMD. ------ Its possible to survive downturns. You need to cut staff, stabilize the company, and then turn it all around. It takes a good management team with long-term vision. I think "Best Buy" was a good turnaround in the past 10 years, and actually retail. So maybe a better example? I dunno enough about BBBY. But its "possible" to turn a company around. I admit that most of these cases look like a lost cause though (Kodak, Sears, K-Mart, etc. etc.)
- blippage 4y ago
  > Kodak, Sears, K-Mart, etc. etc Yeah, those kinds of names I had in mind. Skimming through some of the other comments on this thread I'd put it in the "lost cause" category. These things can "kinda" turn around, by which I mean there are a lot of false dawns and people think they're in a recovery situation, only for the thing to grind lower longer-term. In investing, never say never, of course. Miracles do happen, but I think the outlook is bleak for this company.

mdavis6890 4y ago

Not necessarily - reducing the workforce and closing stores may well be a healthy consolidation. Taking on debt may perform the same function on the balance sheet. You should worry if they take on debt to expand stores or the workforce.

hotpotamus 4y ago

I worked for Ritz Camera back in the day and was mostly onto better things when they began this process, but I can say from my experience that there's really no coming back from it.

dragontamer 4y ago

AMD wasn't part of retail, but they cut like 20% of their staff in the high-flying tech field and then bet it all on Zen processors, and their "custom" projects (XBox and PS4/PS5). Needless to say, it worked out for AMD. ------ Its possible to survive downturns. You need to cut staff, stabilize the company, and then turn it all around. It takes a good management team with long-term vision. I think "Best Buy" was a good turnaround in the past 10 years, and actually retail. So maybe a better example? I dunno enough about BBBY. But its "possible" to turn a company around. I admit that most of these cases look like a lost cause though (Kodak, Sears, K-Mart, etc. etc.)

blippage 4y ago
> Kodak, Sears, K-Mart, etc. etc Yeah, those kinds of names I had in mind. Skimming through some of the other comments on this thread I'd put it in the "lost cause" category. These things can "kinda" turn around, by which I mean there are a lot of false dawns and people think they're in a recovery situation, only for the thing to grind lower longer-term. In investing, never say never, of course. Miracles do happen, but I think the outlook is bleak for this company.