As if it weren't enough to watch a company furlough people and cut pay for others during the COVID-19 pandemic AFTER having just emerged from bankruptcy, guess what's in the headlines for top competitor to beat, 1-800/Flowers?
They're getting TAX BREAKS and grants to keep their HQ in COVID-19 hard hit New York, rather than move out of state.
What, didn't they want to consider moving to Illinois? It's in such great shape having just been downgraded to one grade above junk. Really amazed they didn't want to come here.
No way Nexus Capital is going to be able to nudge FTD into top place competing with 1-800. At best, they can hope to just prop up FTD long enough to get management fees, maybe a dividend recap and eventually a 20% carry by eventual exit (however that ends up in the future). They're not going to be able to pull off a miracle.
1-800 gets tons of good press.
Here's a Business Insider review of FTD:
Cons - Not as eco-friendly
Gee, some of us specifically mentioned the Green issue before being furloughed. Now it's in the press that they have this huge weakness that was NOT lost on them.
Do a SWOT analysis and not being on the Green bandwagon is a major weakness.
I'm sorry, but Nexus needs to step it up and actively manage in return for those management fees. Their investment is getting clobbered by the competition.
Despite having better flowers!
This should be a case study over at Kellogg or Chicago Booth. FTD versus 1-800. Managing a brand through a pandemic.
I see nothing about furloughs at 1-800-Flowers! Despite being in COVID-19 hard hit New York.