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jerryking : bankruptcies   52

Why black filmmakers go broke
Why black filmmakers go broke?

They will sink 10's of thousands of dollars into a movie, make one really good project. Make a great film. Then go out and try to sell it. Living on a hope and a prayer "Hope Lions Gate buys this movie. hope Warner Bros Studios will buy this movie. Hope Netflix will buy this movie." What happens? No one buys the movie.

Economic systems and markets are like a see-saw: to make a see-saw work, you need two people on the see-saw. Weight on both sides of the see-saw.....A consumer needs a producer and a producer needs a consumer. An investor needs an investee. An employee needs and employer. A renter needs a owner/landlord they can rent from....The black community has an oversupply of consumers, an oversupply of borrowers, an oversupply of spenders an oversupply of employees....We have an undersupply of producers, an undersupply of investors, an undersupply of owners. What effectively occurs is the you will have imbalanced markets.......we might have a lot of producers but not enough people who understands the distribution and monetization aspects of the entertainment industry.....black children aren't trained on distribution aspects, the financing aspects, creating all the different economies that are necessary, or the different markets that are necessary to build an economy: the market for capital, the market for contractors, the market for customers.......The black community has an oversupply of people who make films, but we have an undersupply of those who can provide the distribution and monetization.
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[JCK: this is about customer adoption...."[Reid ]Hoffman urges his followers to find their own levers and devices to encourage people to adopt their technologies. Entrepreneurs, he says, often spend too much time creating products and too little figuring out how to get people to use them."
African-Americans  bankruptcies  Boyce_Watkins  customer_adoption  filmmakers  producer_mindset  two-sided_markets  Warner_Bros. 
december 2019 by jerryking
A Milk Giant Goes Broke as Americans Reject Old Staples
Nov. 13, 2019 | The New York Times | By David Yaffe-Bellany.

Saddled with debt and struggling to adjust to changing consumer habits, Dean Foods filed for bankruptcy protection on Tuesday, signaling another grim chapter in the recent struggles of the dairy industry. The company, whose portfolio of brands includes TruMoo and Lehigh Valley, said it was in talks to sell itself to Dairy Farmers of America, a marketing cooperative that sells milk from thousands of farms.

Across the food and beverage industry, the challenges facing Dean Foods are becoming increasingly familiar. In recent years, consumers have moved away from brands, and even entire categories of food, once seen as household staples. The decline of the milk industry has emerged as a particularly stark example of how these changing tastes are challenging major companies whose products once crowded store shelves.
bankruptcies  Big_Food  CPG  dairy  Danone  Dean_Foods  grocery  Kraft_Heinz  plant-based  private_labels  shifting_tastes  spin-offs  supermarkets  Target  Wal-Mart  yogurt 
november 2019 by jerryking
Makerspaces under pressure to revamp business models
July 29, 2019 The Globe and Mail | BRENDA BOUW, SPECIAL TO THE GLOBE AND MAIL.
3-D  bankruptcies  business_models  hacks  innovation  manufacturers  start_ups  Makerspace 
july 2019 by jerryking
Store wars: short sellers expect more pain in US retail
February 26, 2019 | Financial Times | by Alistair Gray in New York.

Short sellers who made big bets against US retailers a couple of years ago had hoped for carnage across the board. No one could compete with the rise and rise of Amazon...which would make life hard for every mall tenant across America.

But after a period in which internet shopping seemed to hit almost every brick-and-mortar retailer, the industry seems to be dividing into winners and losers. Casualties are still piling up: bankruptcies since the turn of the year....Payless Shoes ....Sears, the once dominant department store chain, narrowly avoided outright liquidation.

However, some of the biggest companies e.g. Walmart & Best Buy are reporting their healthiest metrics in years......For short sellers trying to profit from falling share prices, it makes for a perilous environment.

“It’s a slow death by a thousand paper cuts, and not the kind of ‘mall-mageddon’ originally anticipated by that trade,”.....“Retail has been much more volatile than many would have expected. It hasn’t been decidedly one way down.”....an over-reaction in 2017 and that led to pretty nice opportunities [for longs] in 2018,”.....Investors who put money on the demise of retail that summer have lost out in many cases......It was almost as if they [shorts] were acting like no retail real estate space can work,” ....overcapacity doesn’t mean retail real estate is dead.”...Shares in the sector have been volatile in part because investors have had to consider a series of seemingly contradictory data points about the health of both the US consumer and the retail business.....Traditional chains are also trying to take on Amazon by improving their online offerings and making their stores more enticing. Both require hefty investment, although successful examples include Lululemon, which offers yoga lessons in its stores. Shares in the company have tripled since a 2017 low.

“Those who are innovating and investing in ecommerce, marketing and social media tend to be doing well...“The US is still over-stored,” ...Ecommerce meant “more of the store base is not economic. That’s going be a secular pressure for years to come. For those retailers that don’t have a digital strategy, it’s just a matter of time before they fall.”
Amazon  apocalypses  bankruptcies  barbell_effect  bear_markets  bricks-and-mortar  commercial_real_estate  death_by_a_thousand_cuts  department_stores  digital_strategies  e-commerce  innovation  investors  investment_thesis  Lululemon  pain_points  overcapacity  retailers  shopping_malls  short_selling  structural_decline  Wal-Mart 
february 2019 by jerryking
US fast-food chains struggle as poorer consumers tighten belts
November 11, 2018 | Financial Times | by Alistair Gray in New York.

The robust US economy is failing to boost the fast-food industry as chains grapple with a saturation of retail outlets, consumer demands for deep discounts and declining footfall.

Numbers visiting US fast-food outlets in September dropped 2.6 per cent from a year ago, according to restaurant industry data provider MillerPulse, a steeper decline than the 0.8 per cent year-on-year drop recorded the previous month.

Industry executives and consultants cited a series of factors, including consumer demand for healthier alternatives to burgers and pizzas and lower construction activity, which means fewer building workers are picking up fast food on lunch breaks.

The tough landscape has taken its toll on several operators. Last week, the New England-based owner of Papa Gino’s and D’Angelo Grilled Sandwiches filed for bankruptcy protection.
bankruptcies  fast-food  low-income  QSR  restaurants  store_closings  oversaturation 
november 2018 by jerryking
Toys ‘R’ Us Case Is Test of Private Equity in Age of Amazon
MARCH 15, 2018 | The New York Times | By MICHAEL CORKERY.

The reality is that Toys “R” Us, which announced on Thursday that it would shutter or sell all of its stores in the United States, never had much chance at a turnaround.

For over a decade, Toys “R” Us had been drowning in $5 billion of debt, which its private equity backers had saddled it with. With debt payments siphoning off cash every year, Toys “R” Us could not properly invest in its worn-out suburban stores or outdated website. Sales plummeted, as Amazon captured more children’s desires — and their parents’ wallets — for Star Wars Legos and Paw Patrol recycling trucks.

Toys “R” Us is the latest failure of financial engineering, albeit one that could portend a potentially more ominous outlook for private equity in the digital era.....Most buyouts tend to work the same way. A private equity firm takes over a troubled company with the goal of sprucing up the strategy, cutting costs and overhauling the business over three or five years. But they often load up a company with debt to pay for the deal, which can prove problematic if the profits do not perk up.

In the age of Amazon, that formula can be dangerous. Consumer demands are changing so quickly that heavily indebted companies have trouble reordering their business to adapt and compete with better-funded rivals...... the deterioration of Toys “R” Us from a potential turnaround strategy to the end of an iconic brand — in a matter of months — shows just how difficult it can be for private equity to compete in a rapidly evolving industry. In retailing, Amazon is reordering everything on the store shelf. And children’s changing interest in games and toys, which now encompasses high-end electronics, adds to the complexity.....Enter Amazon. In recent years, the company had started to aggressively expand its toy business, creating a comprehensive, online showroom with low prices at the click of a button. Pressed by Amazon, Walmart also pushed hard into toys, dropping its prices to capture more market share.

Walmart could absorb the price cuts on toys because it makes up the profit on other items. But for Toys “R” Us, a price war on toys and games, its only offerings, was devastating.
private_equity  bankruptcies  toys  digital_economy  Amazon  Wal-Mart  KKR  Bain_Capital  Toys_"R"_Us  financial_engineering  LBOs  buyouts  shifting_tastes  category_killers  price_wars 
march 2018 by jerryking
Why traditional retail hasn’t hit rock bottom — yet
October 4, 2017 | The Globe and Mail | ERIC REGULY.
.....it's fashionable—and not wrong—to blame Amazon for most of the retailers' woes, other factors, from stale retail formats to the new anti-stuff movement, are at play too. Put together, the financial and cultural forces battering the retailers seem relentless.

The outlook is so grim that Bespoke Investment Group of Harrison, New York, invented a "Death by Amazon" list of 54 retail stocks that it thought would get whacked by Amazon and other forces conspiring against the sector......Traditional retailing, of course, is not entirely doomed because only the brave or bone-headed would buy some expensive items—diamond earrings, high-end suits, musical instruments, mattresses, Persian carpets, prescription sunglasses—without hands-on examination. And some shoppers, me among them, like the pleasure of propping up independent stores that sell high-quality goods.

But I don't shop much for general merchandise any more, because I am sick of clutter and, with university fees for my kids, don't have the spending power for non-essential items..... blamed shifting consumption patterns for much of the old-style retailers' distress........ blamed shifting consumption patterns for much of the old-style retailers' distress...money spent on smartphones and wireless services is unavailable to be spent on T-shirts and shoes.....middle-class incomes have stagnated, healthcare costs have climbed, and highly leveraged consumers are more interested in paying off debt than buying new TVs. Something had to give, and it was the department stores, whose shares are down by 40% or more in the last year or so (Macy's, J.C. Penney)......Amazon's endless virtual aisles sells Fiat cars in Italy, Nike shoes and and Sears' Kenmore appliances. Amazon recently bought Whole Foods and dropped its prices, which put the mainstream supermarkets into a panic........ 55% of product searches start on Amazon, far more than the 28% that start on search engines. The popularity of Amazon Prime (which provides free, two-day delivery as well as TV and movie video streaming) and the construction of massive warehouses have accelerated its growth. .....captures an estimated 40% of every shopping dollar spent online and is already the second-biggest apparel seller in the U.S., behind Wal-Mart. No wonder the traditional retail sector is in free fall.
And here's another question: As traditional retailers weaken or go out of business, and anchor stores disappear from North America's crazily over-malled shopping geography, can the real estate investment trusts be far behind? Betting against Amazon seems a fool's game.......
Eric_Reguly  retailers  decline  bricks-and-mortar  shifting_tastes  Amazon  REITs  shopping_malls  bankruptcies  department_stores  seismic_shifts  high-quality 
october 2017 by jerryking
Toys ‘R’ Us versus Amazon: No contest
September 17, 2017 | The Globe and Mail | BARRIE MCKENNA.

It's a new era all right...The industry is grappling with the relentless onslaught of Amazon and Alibaba, excess retail space, the retreat of department-store mall anchors and intense price competition. Meanwhile, consumers are shifting their spending from things to experiences, including entertainment and dining-out
The harsh reality for Toys "R" Us and other big-box stores is that they aren't indispensable any more as North Americans discover new and different ways to shop. You don't have to schlep to a suburban shopping strip to find the newest Lego set, video game or electronic gadget. Order it online, and you can have it delivered to your door, often for free the next day, at the best price available anywhere.

....retail experts have warned that a tipping point was coming for the industry as more and more shopping moved online. This looks like the year.....Analysts predict that a record 9,000 retail stores will close across the U.S. in 2017. That would eclipse 2016, when roughly 6,200 stores closed....
Retailers have been filing for protection from creditors at a faster pace this year than at any time since the 2008-09 recession. Toys "R" Us joins a long list of famous retail casualties of 2017 in Canada and the U.S., including Sears Canada, The Limited, Wet Seal, BCBG, Payless Shoes, Sports Authority, Gymboree, Aéropostale and American Apparel. And there are still three-plus months to go.....The rise of Amazon is proof that consumers are embracing new ways of buying. The company's North American sales grew five-fold to $80-billion (U.S.) between 2010 and 2016. Half of U.S. households now subscribe to Amazon Prime, a fee-based service that offers free two-day shipping, music and video streaming plus other perks......What's alarming isn't so much the share of shopping that has moved online, but the speed at which it's moved.

Warren Buffett sold off nearly $1-billion worth of Walmart stock earlier this year, explaining that traditional retailing is "too tough" a business in the age of Amazon. "The world has evolved, and it's going to keep evolving, but the speed is increasing," Mr. Buffett said.

Amazon and China's Alibaba won't be the only winners in this new era. A vast array of other businesses feed off the online industry, including shippers and logistics companies, plus a vast network of technology companies, including store platforms (Shopify), analytics companies and app makers.
Amazon  Alibaba  e-commerce  store_closings  Barrie_McKenna  retailers  bricks-and-mortar  toys  Toys_"R"_Us  bankruptcies  brands  Amazon_Prime  home-delivery  accelerated_lifecycles  Warren_Buffett  Wal-Mart  big-box 
september 2017 by jerryking
Mall Landlords Step Up Mobile Efforts to Woo Shoppers - WSJ
By Esther Fung
Aug. 22, 2017

Retailers are making progress incorporating the benefits of online shopping into the physical shopping experience, but consumers are still uncomfortable with location-based services that track their smartphones, according to a recent survey of 5,000 shoppers.

Faced with competition from online vendors, shopping-mall landlords and retailers have been trying to transform brick-and-mortar spaces with innovations such as click-and-collect services and other interactive shopping functions......“Retailers are figuring out click-and-collect over time and are making real progress toward omnichannel maturity,” said the report. Omnichannel retailing is a strategy of getting goods to customers seamlessly, whether online or in stores.

There has been a surge in the number of retailer bankruptcies and store closures this year, including many mall-based chains that are suffering from weaker mall traffic and competition from Amazon.com Inc.....According to the survey, a majority of shoppers aren’t comfortable allowing retailers to track their locations when they aren’t using the retailer’s apps or with changing messages on digital signs as shoppers pass by. Some 70% of the respondents said they weren’t likely to use retailer services that rely on location tracking via the phone when the app isn’t in use.
shopping_malls  landlords  retailers  BOPIS  omnichannel  bankruptcies  location_based_services 
august 2017 by jerryking
Latest to Be Blamed for Retailers’ Woes: Private Equity - WSJ
By Lillian Rizzo
Updated July 30, 2017
A wave of retail bankruptcies washing through court has revived an old debate about the role of private-equity firms in accelerating the problems of companies in distress......"During that same time, Payless was also grappling with dwindling mall foot traffic, consumers shifting to spending online, changing trends and many store leases. Since the bankruptcy filing, hundreds of Payless stores have been closed, and employees have been laid off."

Vendors and landlords alleged in court papers that the dividend payouts, along with other payments to the investors, left the retailer particularly vulnerable to collapse just as technology and shifting consumer behavior upended the retail industry.

“The depletion of their coffers put the company on a dangerous path that ultimately led to this instant bankruptcy filing,” a group of Payless’s unsecured creditors said in June court papers.
retailers  bricks-and-mortar  private_equity  investors  bankruptcies  foot_traffic  creditors  store_closings 
july 2017 by jerryking
Detroit Goes Bankrupt, the Largest City to Do So in U.S. - NYTimes.com
By MONICA DAVEY and MARY WILLIAMS WALSH
Published: July 18, 2013
Detroit  bankruptcies 
july 2013 by jerryking
Two Women Pitch In During Hard Times And Find Big Rewards
July 20, 1999 | WSJ | By HAL LANCASTER.

Two Women Pitch In During Hard Times... Hard times don't necessarily mean hunkering down or looking for greener pastures. It can be a time to take on more responsibility and expand your skills.
Hal_Lancaster  Managing_Your_Career  opportunities  hard_times  opportunistic  bankruptcies  women  adversity 
december 2012 by jerryking
Apple-Google Team Up for $500 Million-Plus Kodak Patents Bid - Bloomberg
By Serena Saitto, Beth Jinks & Brian Womack - Dec 8, 2012

Apple Inc. (AAPL) and Google Inc. have joined forces to offer more than $500 million to buy Eastman Kodak Co. (EKDKQ)’s patents out of bankruptcy.

The two companies, competing for dominance of the smartphone market, have partnered after leading two separate groups this summer to buy some of Kodak’s 1,100 imaging patents.
Unlikely partnerships are typical in patent sales because they allow competitors to neutralize potential infringement litigation. A group including Apple, Microsoft Corp. (MSFT) and Research in Motion Ltd. bought Nortel Networks Corp.’s more than 6,000 patents for $4.5 billion out of bankruptcy last year. Google lost the auction for those patents after making an initial offer of $900 million.
Apple  auctions  bankruptcies  coalitions  collaboration  Google  Kodak  Nortel  patents  patent_infringement  partnerships  smartphones 
december 2012 by jerryking
Vulture Funds Serve Purpose
Dec 20, 2006 | National Post | Marie Beaudette.

Harbinger said Crescent declared "thermonuclear war” by resisting the hedge fund's advances. But the rule of

mutually assured destruction doesn't apply in bankruptcy: Crescent eventually conceded to a hedge fund determined to win.
Regulators are starting to question the role hedge funds play in Chapter 11 cases. The Securities and Exchange Commission has expressed concern about whether hedge funds have lied to gain leverage in bankruptcy cases and traded on sensitive information gained through the process.
New York University Professor Edward Altman estimates there are at least 160 investment funds in the US. specializing in distressed-company securities. "A new breed of distressed-debt investors, called ‘vulture funds,‘ has emerged as one of the fastest- growing sectors of the burgeoning hedge fund and private equity field," Mr. Altman wrote in a recent study.
vulture_investing  bankruptcies  distressed_debt  restructurings  SEC 
september 2012 by jerryking
Teaching Turnaround Management and Bankruptcy
Fall/Winter 1995 | Social Science Research Network | by Harlan D. Platt.

Students both need and want to learn how to restore distressed and dying companies. Business schools have a responsibility to both their students and to society to teach these skills. One factor holding back faculty who might have considered teaching a course on this topic is the lack of a textbook and any ancillary support material. This article discusses how several faculty members have successfully overcome this limitation. A short review of the techniques of turnaround management is also provided based on discussions with several practicing turnaround managers.
turnarounds  bankruptcies  teaching  business_schools  curriculum 
august 2012 by jerryking
Opportunities in Distressed Securities
March 28, 1995 | Finance Weekly | by Martin Sass, CEO of M.D. Sass Investors Services, a New York Cky—based investment management firm.

Some of the best investment opportunities lie in post-bankruptcy investing....Five factors contribute to success in distressed-security investing: high absolute return potential; astute, rigorous financial analysis: expertise in the bankruptcy and restructuring process; investment flexibility (i.e.. the ability to invest both long and short, as well as anywhere in the capital structure ranging from senior debt to subordinated debt to equity): and portfolio diversification....Another important task is making an informed estimate of the time it will take to realize the forecasted value and any likely intervening events (i.e., litigation, negotiations and other elements of the restructuring process) that will affect that value and/or the duration of the workout. A workout of a distressed
situation could take anywhere from six months to five or more years. This makes a difference when figuring your annualized return.
distressed_debt  capital_structure  howto  workouts  bankruptcies  investors  opportunities  restructurings 
july 2012 by jerryking
How Super Is Your Market? - WSJ.com
March 1, 2005 | WSJ | By ADAM HANFT.

"I'd have to say that there are several intersecting explanations for the deep crisis gripping the supermarket category.

Industries are self-selecting in terms of the leadership they attract, and the grocery industry has long been populated by conservative management that is resistant to change and innovation. They took their customers for granted, and relied on manufacturers to innovate with new products, seeing themselves as basically commodity transaction points whose responsibility was to stock the shelves, mist the lettuce, and collect the carts from the parking lot.

This lack of marketing sophistication and a consumer-driven approach screams at us from the entire supermarket buying experience. (What other industry rewards those who spend less, which is what the 10 items or less Express Lane does?)

Food shopping should be a variety of entertainment, which is something that Whole Foods understands. Its merchandising should combine elements of adventure and discovery in a tactile and sensual environment. But consider the clinical drabness of the supermarket, and think how long it's been that way: Step inside your average supermarket, if you wanted to convince yourself that you're in 1964 instead of 2004, you could. Meanwhile, retailers in general -- from Old Navy to even Home Depot -- have defined the shopping experience for stimulation-craved, ADD shoppers.

Another massive failure is that supermarkets don't invest in building their brand -- their marketing is entirely price-driven. "
supermarkets  bankruptcies  Winn-Dixie  Nielsen  leadership  marketing  price-driven  self-selecting  Whole_Foods  shopping  shopping_experience  grocery  customer_experience 
july 2012 by jerryking
The Trouble With Bankruptcy Lawyers - NYTimes.com
The Trouble With Bankruptcy Lawyers
Published: June 9, 2012
bankruptcies  editorials  lawyers 
june 2012 by jerryking
Sales Spurt, Growing Pains Leave Karaoke Maker Singing the Blues - WSJ.com
July 29, 2003 | WSJ | By JEFF BAILEY - Staff Reporter of THE WALL STREET JOURNAL.

Singing Machine Co., a Coconut Creek, Fla., maker of karaoke machines. But rather than celebrating its success, these days the executives at Singing Machine are scrambling to avoid insolvency. The company's experience is a warning to all entrepreneurs about the dangers of rapid growth. Outside auditors last month noted that a default on a borrowing agreement "raises substantial doubt about the company's ability to continue as a going concern."

"It's a classic business-school case of growing pains," says Y.P. Chan, 39 years old and recently named Singing Machine's chief operating officer.

Every year, thousands of smaller companies go belly up because entrepreneurs aren't prepared to manage rapid growth. Accustomed to scratching for every sale, when the throttle is finally thrown wide open, too many assume it is clear sailing and fail to ask some important questions.
[chart]

Are your finances solid enough to support a bigger company, or are you counting on lush profits to do it? If you load up on inventory to satisfy demand, how will you survive if prices plunge? Look around -- does management have experience running a bigger enterprise? Look at your competitors -- are they bigger and likely to weather tough times better? Or are they also small companies that might get overextended and slash prices to stay afloat?
small_business  growth  bankruptcies  warning_signs  insolvency  contingency_planning  hard_times  high-growth  inventories  risk-management  overextended 
may 2012 by jerryking
Considerations for Investors Before Investing in Bankrupt Companies
Fall 2002 | The Journal of Private Equity | by Warren H. Feder and Patrick LaGrange
bankruptcies  distressed_debt  howto  private_equity  hedge_funds  investors 
march 2012 by jerryking
Bankrupt Restaurants Are Still Holding On - NYTimes.com
By WILLIAM NEUMAN
Published: December 27, 2011

Consumers, who have generally cut back on the number of meals out since the recession began, are benefiting from the proliferation of zombies. Healthy and failing restaurants alike have been forced to discount relentlessly to lure diners. But for the restaurants, particularly small independent operators, the competition from the undead is a nightmare that just won’t end.

The hard times for restaurants began in 2008, as the recession and staggering unemployment forced Americans to cut back on dining out. During the 12-month period ending in August, the average American ate or got takeout at restaurants 195 times, down from 208 times in 2008, according to Harry Balzer, the chief food industry analyst for the NPD Group.
restaurants  bankruptcies  franchising  under-performing  oversupply  hard_times 
december 2011 by jerryking
Jon Corzine and J. Christopher Flowers Friendship Tossed in MF Global Storm - WSJ.com
NOVEMBER 10, 2011 | WSJ | By GINA CHON
Friendship Is Tossed in MF Global Storm
Flowers and Corzine Relationship Dates to Goldman Days
Jon_Corzine  bankruptcies  friendships  Goldman_Sachs 
november 2011 by jerryking
When a Store Goes Out of Business - Greater Maryland, serving Western MD to the Eastern Shore
July 2008

See if the store posted any instructions for customers. If not, ask
nearby shops if they know how you could contact the owner. The landlord
who owns the building, retail strip or mall may also have that
information.

If that doesn't work, check with the Post Office to see if the company
has a forwarding address. You can check with the county clerk's office
to find out the names and addresses of the "principals" (owners and
officers) of the business. Also, the Better Business Bureau or the
Attorney General's Consumer Protection Division may have information
about the business and what happened to it.

If a Store Closes with Your Item Inside
If a store closes with something of yours inside, such as an appliance
brought in for repair, or clothing that was to have been dry-cleaned,
try contacting the owner. If that doesn't work, contact the Consumer
Protection Division of the Attorney General’s Office: 410-528-8662 or
888-743-0023.
bankruptcies  small_business  consumer_protection 
august 2011 by jerryking
Resort Heads for Bankruptcy - WSJ.com
* MARCH 17, 2011
By MIKE SPECTOR and KRIS HUDSON
luxury  bankruptcies  hotels 
march 2011 by jerryking
Reed Hastings The Netflix CEO brings video streaming to Canada, shaking up the cable industry
Sep 25, 2010 | The Globe and Mail. pg. F.2 | John Lorinc.
Having upended the video-rental industry (Blockbuster, following years
of decline, filed for bankruptcy in the U.S. this week), Netflix moved
into streaming in 2007. This shift puts the $1.7-billion-a-year (U.S.)
firm in direct competition with the cable and satellite sector, with its
video-on-demand offerings. Consumers can stream Netflix's huge library
of movies and TV shows through their game consoles or computers.
VoD  ProQuest  Netflix  Reed_Hastings  Canada  John_Lorinc  web_video  streaming  CATV  Rogers_Media  Shaw  Blockbuster  bankruptcies 
september 2010 by jerryking
Detroit Schools on the Brink - WSJ.com
JULY 21, 2009 | Wall Street Journal | by By ALEX P. KELLOGG.
Shrinking District Heads Toward Bankruptcy to Gain Control of Its Costs.
A decision on whether to file for protection under federal bankruptcy
laws will be made by the end of summer, according to Robert Bobb,
Detroit Public Schools' emergency financial manager. Such a filing would
be unprecedented in the U.S. Although a few major urban school
districts have come close, none has gone through with a bankruptcy,
according to legal and education experts.
Detroit  turnarounds  bankruptcies  African-Americans  school_districts  public_education  schools 
may 2010 by jerryking
No time like bankruptcy for squeezing competitors
July 13, 2009 |The Globe & Mail | George Stalk Jr.

In bankruptcy, your competitor's major issue is a shortage of cash - which is what led it into bankruptcy in the first place. Take advantage of it.

You can put pressure on that shortage by further straining your rival's ability to generate cash, or boost the cash it needs to run its business, forcing your competitor to yield market share, customers, product and service offerings. It is fight versus flight for the bankrupt competitor.

How to raise the cash ante? Consider some of the following tactics:

Introduce extended terms. Offer your competitors' customers longer payment terms. Your rival will either lose the business of customers that bite, or be forced to do the same, thus reducing its ability to generate much-needed cash.

Consignment pricing, where the customer pays only after the product is sold, is the ultimate extended term and will be difficult for a competitor in bankruptcy to match.

Boost marketing expenditures. Raising your advertising and point-of-sale spending will have a similar effect: Either your competitor will also have to spend more, or risk losing customers that you attract.

Lengthen the "tail" of the revenue stream. Add more after-sale services and spiffs - if your competitor has to do the same, it will raise the cash costs of getting and keeping customers.

Launch more products. New product development and introduction eats up a lot of cash - and a cash-short competitor is unlikely to be able to do the same. If you go all out, introducing many more new products than a bankrupt competitor possibly can, you could make your rival's offering obsolete in the minds of customers, forcing it into fire sales in a panic to raise cash.[JCK: panicked selling off of assets]

Pursue your competitor's most profitable customers (perhaps identified via geofencing). Good management teams know where their company makes and doesn't make money. Great management teams know this about their competitors.

This insight can be used to target customers, geography, products and services of the bankrupt competitor to gain market share.

The competitor will be hesitant to counter your move against its most profitable customers because it needs the cash these customers generate. It will be more likely to maintain the status quo with these customers in the hopes the cash will keep coming.

Lawsuits. Now is the time to file the lawsuit you've always wanted to. Your bankrupt competitor will not have the discretionary resources to fight and will likely come to terms quickly.

There are also broader strategies to consider. Among them:

Sell against the competitor. When companies are in trouble, customers may worry that they won't be around to service products or provide future upgrades.

This fear can be a powerful weapon: These customers may be persuaded to take their business to companies on a sounder footing.

Go after the best talent (poaching). Anxiety about the plight of the competitor will be just as rampant among your rival's employees and suppliers as it is among customers. You can leverage that angst by going after top talent and strong suppliers - and offer terms and conditions that your competitor will have a tough time matching.

Force the sale of attractive assets held by your bankrupt competitor. A competitor in protection is not its own boss. The creditor committee is likely to care more for the cash it can get from an asset sale than who buys the assets.
bankruptcies  BCG  competition  competitive_advantage  consignment_pricing  geofencing  George_Stalk_Jr.  hardball  lawsuits  marketing  new_products  offensive_tactics  poaching  product_development  selling_off  supply_chain_squeeze  tough-mindedness 
july 2009 by jerryking
The Dark Side of Entrepreneurship - You’re the Boss Blog - NYTimes.com
July 8, 2009 | New York Times | By Jay Goltz. 70 percent of
businesses fail within seven years, according to the SBA. In the worst
cases, the result is not only business failure but also complete
financial failure.
entrepreneurship  failure  ksfs  bankruptcies  Jay_Goltz  dark_side 
july 2009 by jerryking
Rodier the strategist behind the scenes - The Globe and Mail
June 6, 2009 | The Globe & Mail | Michael Grange. Profiles
Richard Rodier, the legal strategist behind Jim Balsillie's bid to
acquire the Phoenix Coyotes out of bankruptcy protection.

From Saturday's Globe and Mail, Saturday, Jun. 06, 2009
hockey  Jim_Balsillie  NHL  bankruptcies  éminence_grise  legal_strategies  lawyers 
june 2009 by jerryking
A way through the maze
Mar 19, 2007 | Financial Times pg. 5 | ROBERT BRUCE. The corporate world is better for the advent of the rescue culture.
insolvency  Grant_Thornton  receiverships  E&Y  Ashton_Penney  bankruptcies 
june 2009 by jerryking
We Have Chapter 11 for a Reason
MARCH 31, 2009 | Wall Street Journal | by WILLIAM MCGURN

See KeithHennessey.com,
automotive_industry  Obama  bankruptcies 
april 2009 by jerryking

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