Layoff for IT was today along with a complete reorganization of the Merch Planning and allocation division. So much talent walked out of the building today, to the point of what will be the demise of the company. Those walked today should feel like the lucky ones because they got a package and those left behind will have to look for new employment while the company gets ready to file bankruptcy in the coming months. So sad that the executive leadership has no clue what the real issue is in that building. The new guy running merch planning hasn't a clue what he is doing. Just a lackey for the exec committee.
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And to the poster who touted margins/EBITDA and compared to DSG....I haven't looked at DSG's balance sheet lately, but I thought they had quite a bit less debt? Of course, I'm also not in the know about ASO's performance the last 2 qtrs since I left a yr ago, but I heard that Q4 was rough. I'm also not certain how transparent the information available to associates is at ASO, meaning is what you are seeing a flash version of KPIs or truly net net? I've never worked for a privately held co that REALLY opened the books to all employees, especially when all employees aren't under employment agreements. But perhaps you are in a exec/c level position and are privy to that info?
Also, ASO doesn't own any of the store buildings or land. They don't even own the corp office properties. No assets, so I think an acquisition by DSG is unlikely, esp since DSG stores are already in most if not all of ASO markets. I think bigger acquisition possibility is WMT buying out & keeping a few doors OR taking all online, or another regional player who wants our locations/markets. The draw for WMT would be the brands they can't get as a discounter, like Nike,UA,TNF, etc. They've already got all the infrastructure in place, so ASO corp office would dissolve. Again, this is just a guess on my part.
I have no solid proof, but taking a cue from the TSA demise playbook, loan is $2.1B I think & due in 2021. All debt is on ASO, that's why they created "Academy Holdings". They will be able to refi but at way higher rates that they can absorb. Biz is bad, so can't raise funds thru an IPO. KKR got fat & then some...ASO was great ROI for them. Acquisition or insolvency would be the 2 possibilities. I've been thru a Ch11. Watch payables to vendors. If they start to stretch much beyond 120 days, be on the alert.
I wasn't laid off so I guess I won the popularity context in MPandA. The new org structure is very concerning since you have people who are out of their league leading others with specialized knowledge that they do not have. A lot of really bad decisions are already being made, a lot of it is stuff we stopped doing years ago because it doesn't work. I write this in hope that current exec's might read it: you really botched the decisions around who should stay vs go. Morale is terrible and a lot of it is because people feel really lost when people who they admire as some of the best in the building are walked out, and people who don't know their a-- from a hole in the wall get promoted. Where does that leave an associate? Should they work hard, show ownership, have an opinion, think big, and get laid off? Or should they just make as few waves as possible, keep their head down, stand for nothing, build nothing, and draft off of those who do stick their neck out, and then take those people's jobs when they get laid off? That's the formula you have created. And for anyone at KKR or BOD who might read this, you put a theater major in charge of a multibillion dollar company, and ironically the thing he's worst at is standing in front of his team and inspiring them, And you have an executive team that looks like kids playing grownup. Pull the plug on this experiment while there is still time and get someone in here who isn't so concerned with their ego and feels the need to touch everything.
Define horizon.
Give a time table instead of a generic THE SKY IS FALLING response.
Don't be silly....ASO is in TROUBLE, we have vendors not getting paid and holding merchandise, we have managers that have no idea how to do the jobs of the people that report to them so how can they guide a team on what to do......moral is a joke.....back out the Astros and Hurricane sales, I did...whats the comp now? Do not let 2017 events fool you into thinking that Bankruptcy is not on the horizon. When we are not paying our bills.....I am getting out as fast as I can and I encourage the rest to do the same.....when we have most of our leadership from companies that failed then what can we expect. Run as fast as you can
I cant speak for JK, but if you have access to run reports in ABI then you can see the company is NOT doing badly as this thread would have you believe.
I'm not calling you a liar but why haven't they reported our last two quarterly earnings to the team? JK released a video update to address sales for everyone, management and stores included last year, but it hasn't been done for Q3 or Q4. I know I have been interested in the results.
The salt is heavy in this thread. People are seriously spreading completly unfounded rumors. There are ZERO signs about a bankruptcy. The company is making money and coming in much better in EBITDA than planned, and it's not as related to the Astros as some of you people are believing. Our margin is up across the board, and Comp sales are even up last year. DSG is closer to filing for chapter 11 than ASO. Sorry you bitter folks lost your job, I may be next I know and worry about every day, but I'll be damned if I'm going to sit here and spread this bull sh-- that you bitter people are. Yes, a lot of good talent has been let go in an effort to restructure us away from what made us grow the way we did the past 20 years, that can not be ignored. I do not agree with the way JK/Exective Branch has gone about things and changed the culture completly from what "worked". But facts are facts, and you people are smearing the company out of spite and it's obvious to anyone looking at the numbers every day.
How does a company decide to lay off people who have been dedicated to the company for so long?
That decision was made with total disregard of the people. We all know retail is struggling and they needs to stay ahead of the curve..They are disregarding dedicated people who are in it for the long run and will go over and above for the company....they are going for immediate results and instant gratification, less overhead for the upcoming year...with no regards how it will affect the company in the long run. The company needs to invest in the innovative team members they have instead of hiring offshore. That satisfies the bottom line for today...with no regards for tomorrow.
Can you clarify your comments on the whole bankruptcy thing? Is corporate planning chapter 11 or was your comment a metaphorical 'this change will doom the company soon' sort of thing? I thought the company's loans were not due until 2021
Agree with the comment above “merchants will spiral us underwater than we already are”! They don’t know how to buy or plan the product. It’s very sad!
Academy is trying to say, "These changes primarily involve the outsourcing of certain IT functions to a U.S.-based company. "
Anybody that has ever worked there knows this is a lie. The IT Department was like little New Delhi. They have been sending American IT jobs to the India based outsourcing company Cognizant for years. For years, Academy has been replacing American IT workers with H1B workers for years.
Not one news outlet has called out Academy for this.
Any relevant info from the town hall meeting that took place today or is that this afternoon?
Are there plans for store closures for those of you in the know?
IT has another round to go
No this was not a part of what we did last year. Last year a division was removed. What the leaders did yesterday and Tuesday was just plain stupid. MP&A is weaker. Merchants will spiral us more underwater than we already are.
Is this not the same reorg that started last year?
any one let go at the help desk
how sure are you on the bankruptcy claim?