So Mother's Day has arrived, the State of Illinois will open up as slow as molasses, and FTD has furloughed tons of people while putting in a just so-so marketing effort this critical Mother's Day season with competitors nipping away at market share.
In six months, if it turns out that Nexus Capital bought the wrong company, then it's a shame. Especially because the floral arrangements LOOK WAY BETTER than the competition!
Granted, Coronavirus was not on everyone's mind at the time of purchase, but different companies will eventually pull through in the long term. The market leaders will survive in whatever industry they operate within. FTD faces a moment of reckoning with other competitors hungrily salivating over the market share they are nibbling away at, especially 1-800-Flowers, whose CEO was on a tear doing critical PR, going on Fox Business, etcetera.
If it turns out that the private equity experts at brand turnarounds ultimately do not succeed, then it's sad. Again, especially because FTD has better looking product. Even upon delivery, not just in marketing photos.
Maybe next brand purchase, Nexus should look for a company that has built out a (natural and therefore completely legal) monopoly?
If you want to share a piece of an increasingly more crowded market, buy a 100 plus year old floral company and hook it up to the business equivalent of life support. Otherwise, go invest in a natural monopoly.
Just ask Peter Thiel. It worked out quite well for him.
https://youtu.be/zI7hbEuopLI