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How do you know? Have you gone over their financial statements?
by hollerith 2y ago
How do you know? Have you gone over their financial statements?
- shitecoin 2y ago[flagged]
- lotsofpulp 2y agoAnyone who owns equity might want to sell it at any point in time for myriad reasons, regardless of what is on financial statements or “need for investment”.
- hollerith 2y agoThat argument does not apply in the current case, though, because Joann was being publicly traded [1] when it got bought by private equity in 2011. The management of the publicly-traded company explained, >“We are excited about the prospect of working with Leonard Green & Partners [a private-equity firm] as we further capitalize on opportunities to accelerate the expansion and upgrade of our stores and pursue market share gains,” Darrell Webb, chairman and chief executive of Jo-Ann Stores, said in a statement [1]. [1] https://archive.nytimes.com/dealbook.nytimes.com/2010/12/23/leonard-green-offers-1-6-billion-for-jo-ann-stores/ https://archive.nytimes.com/dealbook.nytimes.com/2010/12/23/...
- lotsofpulp 2y agoPart of owning equity in a publicly traded company is for shareholders to accept the decisions of the board (management). Or otherwise engage in a conflict with the board. Even if Joann was a viable business on its own, if most shareholders wanted to accept the price being offered for the business (presumably reflected by the board's votes), then that is all that matters.
- deleted 2y ago[deleted]
- deleted 2y ago[deleted]
- Blackthorn 2y agoI don't think anyone is arguing over that. What we're saying is that Joann's was a victim of private equity, which is orthogonal to that point.