Kroger doesn't need (nor want) this hot mess
13 replies (most recent on top)
Kroger is going to buy us out.
Monsanto buys wholefoods HAHAHAHA! Karma coming full circle.
Monsanto buys whole foods.
Core values changed, full on assault on anything that resembles compassion
I'd agree that a buyout seems to be in the works. The board has proposed or passed a rule, allowing Board members to cash out, without limit or delay in a buyout. Why would the Board be setting up these guidelines about Board members "taking the money and run", so to speak, if a buyout was not in the works?
The Core Values were questionable enough, but once the Conscious Capitalism propaganda got rolling and then the Values Matter BS was introduced you knew they had to be frontin'. You can fool some of the people some of the time, and most of the people most of the time, but not all the people all the time! The responses on this post show that people aren't stupid. We know they're shopping this thing around and any buyers had better bring a big shovel and a magnifying glass.
181417 is right! But listen guys: The company only has "no debt" because of how it handles accounting for store leases. It's a loophole in the FASB (Financial Accounting Standards Board) requirements and considered "aggressive accounting." Basically, it makes the company APPEAR to be almost debt-free because leases are listed as operating expenses instead of capital expenses. So the cost of the stores is treated like, say, a power bill instead of a long-term obligation that must be written off. Why? By keeping high-cost assets off the balance sheet, it makes equity appear to be greater, liability appear to be lower, and ROA (returns on assets) and ROE (returns on equity) appear to be much higher. The money just magically appears. Isn't that special?
This company has no debt. They are in a perfect position to be bought cause some company with a ton of debt can pull equity out of whole foods market. That's why the stock spiked for no reason a few Friday's ago. That is a clear indicator that someone is shopping them.
i dont know if they will close stores down but they might "ice" a few of the stores in planning and development...they might wait till they get their story straight on what the hell is going on with the "365" stores.
The Wall Street vultures are patiently waiting for November 4th. The leadership had to cook up some stories before reporting Q4 numbers because they knew it was going to be a blood bath. They had to come up with the "1500 layoffs" and then invest money in "theoretical" technology and got Cramer to beat the drums for them. Abandoned "Value matters" campaign. The reality is that the competition will keep putting more heat on them as customers become more aware of numerous shopping options. "Price" can never be a differentiator in a competitive environment because products can easily be substituted.
Buyout. Bank on it...
A buyout, although if I were an investor I wouldn't approach this company with a 50-ft pole. So that, or we'll see many unprofitable stores closing.