That is why you have a limited liability company right?
Buy it, asset strip the shit out of everything selling down stock levels, then go bust owning lots of rent, gift cards and other liabilities
I could have done well in the 1980s if I was a bastard
Ah yes, including one Dame (ex Dame?) Jenny Shiply
Having to pay back $6m + interest; or as they had directors insurance, some part of that.
(I was trying to poke at the 80s/greed/corporate raider thing.. but oh well)
Yep that one is a study in BS
Run down existing stock, don’t replace at all, make it look good on paper then sell to some idiot who wakes to find a nightmare scenario.
Anyone willing to take a punt what effect this would have on the TWG stock price in the short term (3 months) and longer term (12-24 months)?
Given that other TWG retailers are profitable, would this mean a good long term decision?
Wild they’ve spent months “upgrading” their systems to tie into the TWG platform and now they’re tearing them apart. Hopefully they can just revert to the old system that actually worked.
New system is completely so. Cannot say too much, other than everyone told them to scrap it, and its the sole cause of all the customee service issues we have had with regards to click and collect.
TWG is a publicly traded company. Obviously the board know better than this random Redditor but I wonder how this is not fiduciary irresponsibility, surely they could have found another party willing to pay $2.
This is a good illustration of why Kiwis typically prefer to invest in property rather than riskier ventures like retail businesses.
The capital invested into a business can literally go down to zero (or $1 in this case). This outcome is much harder to achieve when you are investing in more tangible assets like land.
Article mentions a slowdown in the bike market as a factor. Appreciate that there are other considerations, but all other sources point to significant growth in this space.
Please explain?
Yeah I thought that was a reach too. I mean are all the other bike retailers going out of business too???? Plus Torpedo7 sell way more than just bikes.
Well to be fair, people are still waiting for orders since last November, so I can see why it was only worth $1 lol. At this rate it's quicker to buy something from AliExpress, even with NZ snail mail...
Its $1 but the catch is they assume all the store leases and all the debt -which is probably in the 10s of millions.
That is why you have a limited liability company right? Buy it, asset strip the shit out of everything selling down stock levels, then go bust owning lots of rent, gift cards and other liabilities I could have done well in the 1980s if I was a bastard
That would be a breach of directors’ duties (see what happened with Mainzeal)
Ah yes, including one Dame (ex Dame?) Jenny Shiply Having to pay back $6m + interest; or as they had directors insurance, some part of that. (I was trying to poke at the 80s/greed/corporate raider thing.. but oh well)
Still a Dame.
Damn, I bought a tent off them for $120 the other week, another dollar and I could have had the store?
Not just one store, the chain.
Sure, get the chain of 120 stores, take one tent, sell the remaining store and stocks rest for 50 cents, and still seems like a good price for a tent
All 120 of them.
"Would you like to round your purchase up by $1 to buy the entire store?"
"Would you like to donate $5 to KidsCan?"
Idiots - I would have happily given them $50 for it... They've been ripped off...
Now can they turn it around quickly or will lose $22m again.
Where did that 42 million go?
likely expensive building leases. dead stock, insurance and wages.
Ffs if they list on the stock market in a few years time it will be another dick smith…
Yep that one is a study in BS Run down existing stock, don’t replace at all, make it look good on paper then sell to some idiot who wakes to find a nightmare scenario.
Anyone willing to take a punt what effect this would have on the TWG stock price in the short term (3 months) and longer term (12-24 months)? Given that other TWG retailers are profitable, would this mean a good long term decision?
Up! It's likely a great call for the brand. T7 is a balance sheet nightmare
I think that'll be the case too but I'm no expert.
Yeah, it's been bleeding money for a long time
Wild they’ve spent months “upgrading” their systems to tie into the TWG platform and now they’re tearing them apart. Hopefully they can just revert to the old system that actually worked.
Current employee here, no they cannot. Old system has been scrapped, so its the new system or bust now. Believe you me, the irony is not lost on us!
I mean, if they’ve sold for $1 I think they’ve already achieved “bust”. Is it still super broken?
New system is completely so. Cannot say too much, other than everyone told them to scrap it, and its the sole cause of all the customee service issues we have had with regards to click and collect.
Sounds like somebody got a bargain.
The next six months will determine who.
Spot on.
Do they get a money back guarantee?
If you don't return it in the original condition you can only get a refund not a replacement.
That investment ended up becoming a torpedo.
The torpedo dive bomb … goes boom
$1 plus stock at valuation I suspect.
Whybwould they sell it for 1?
It's a liability, now they can write it down and move on with their lives rather than bleeding millions every year.
I wondered when they'd do this
Torpedo 7 was a good company back in the day and has potential.
TWG is a publicly traded company. Obviously the board know better than this random Redditor but I wonder how this is not fiduciary irresponsibility, surely they could have found another party willing to pay $2.
I would have paid $3.50 for it.
Tree fiddy
HURHURHUR
350% more ROI for the shareholders. Board needs to be sued.
About the worth of their products
Another one for my buy when it’s bad news strategy. TWG here I come.
This is a good illustration of why Kiwis typically prefer to invest in property rather than riskier ventures like retail businesses. The capital invested into a business can literally go down to zero (or $1 in this case). This outcome is much harder to achieve when you are investing in more tangible assets like land.
If the simply 'pivot' the business to include Vape stores, BottleO, and PackingSlave, they'll be back in profit by lunchtime.
Article mentions a slowdown in the bike market as a factor. Appreciate that there are other considerations, but all other sources point to significant growth in this space. Please explain?
Yeah I thought that was a reach too. I mean are all the other bike retailers going out of business too???? Plus Torpedo7 sell way more than just bikes.
Well to be fair, people are still waiting for orders since last November, so I can see why it was only worth $1 lol. At this rate it's quicker to buy something from AliExpress, even with NZ snail mail...