"The company is strong, stable, and back on the right track"-
We were told this, again, yesterday on a call.
Does anyone seriously believe this?
I have no words.
5 replies (most recent on top)
not only is the company not "strong and stable", the customer base has turned into the Dollar General customer. people literally argue over fifty cents even after we correct the price. one customer because furious when we would not return her MAC Studio Fix Fluid she got in 2018, half used. the worst of the worse customer base,
I remember when there were rumblings of Belk’s financial trouble as early as 2017, my RVP would always say “I’ve never heard anything like that”, then I heard someone say the exact same phrase on this board a while ago. They must have told all the upper management and corporate shills to say that. And of course, they were all lying to employees and store level managers. So glad I got out of that hell hole.
Absolutely not. Belk's relation with vendors after that chapter 11 is still not normal. If the Chapter 11 did not get approval in Houston, Belk was DAYS away from liquidating. They did not even have enough cash on hand to make payroll for that pay period.
First tell that to the creditors who just had to "eat" a couple hundred million in debt write off.
Second tell that to all the vendors and landlords who weren't paid last year.
Third tell that to all the financial experts who identified serious issues with Belk's profitability and longevity back in 2019 well before Covid. This leads directly into the next and final point, the most important, that was identified now over 2 years ago.
Cash flow. If there's not a profitable cash flow for the company to pay the ongoing bills, maintain the stores, invest in them with new technology, purchase new inventory, etc., then this is all just a ponzi game that will eventually, sooner than later, implode itself.
How long can they hobble along? JC is doing this dance after many years. Macy's fighting a good fight. Others folded after creditors said no mas. Given the money Sycko throws around, it seems they have plenty of cash. Question is will they throw more onto this sinking ship or go out and spend it n their fleet of undersized rust buckets and such?
No. Maybe they have enough to normalize relations with vendors but that's it. They put a band aid on a deep wound that needs stitches. See the current Moody's report. Let's see how long they can continue to hobble along.