Thread regarding FTD layoffs

Stages of corporate decline - Courtesy of Jim Collins

This forum is kinda dead as far as useful info about the current/future trajectory (likely because they literally just installed a new top leadership team and not much is known as of yet).

That said, here's some info for anyone (even if perusing threads of other company forums) about the stages of corporate decline (no fun just studing successful leadership without studying organizational decline as well).

According to Jim Collins, Stage 4 is Grasping for Salvation.

Um, you mean like playing musical chairs with a never-ending parade of interim and "permanent" CEOs perhaps? The quotation marks indicate a lack of confidence that anyone lasts 5 years or more at this point (but could be wrong!).

Betting the "game changing acquisition strategy" is deployed, because someone high up in the new hierarchy boasts M&A experience on her bio. Also, because some of us here who are speculating on the forum have worked through a private equity "roll up" in the past, where a platform company is bought to serve as the basis for future add-ons, referred to as a "roll up" in PE-speak.

This strategy may temporarily keep the company treading water long enough to be sold at a profit (remember that Nexus, founded by ex-Apollo Global Management guys, bought the company just before it went down completely).

It's basically now a comatose host firm, likely to be preyed upon some more by financial engineering experts (management fees, dividend recaps possibly, more mass layoffs down the road to better value it for an eventual sale, followed by the PE firm getting an eventual 20% "carry").

Apollo did save Hostess. But then again, how many competitors for market share are also selling their trademarked Twinkies? There's only one Twinkie. There are many floral business competitors, especially with disruptive upstarts like BloomNation on the scene.

Good reading on building awesome, growing, ethical, great sense of corporate social responsibilty companies that largely grew organically and remained publicly traded comes from Salesforce CEO Marc Benioff' in "Trailblazer: The Power of Business as the Greatest Platform for Change."

Also, Peter Thiel's "Zero to One."

These gentlemen built companies to last and which are not in the pre-cadaver stage of inevitable decline.

Had some higher hopes for what Nexus might do for FTD until I did more digging and saw the publicly available stuff, from the DOJ anti-trust (they were entered into a consent decree), followed by the high profile bankruptcy, followed by seeing a shareholder lawsuit online over that bankruptcy. Then, they brought in an interim leader whose other most recent employer, Eastman Kodak, got panned by critics over this bitcoin/cryptocurrency/Spotlite/Wenn Digital fiasco of a deal that the SEC blocked.

The image is just too convoluted and full of baggage in an increasingly more competitive market.

If Nexus is really smart, they will CHANGE THE NAME. Unless the goal is more short term, as in propping it up just long enough to cash out. Good luck!

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