Ok so I am putting myself out on a limb here but I feel everyone needs to know the truth here.
The family and board have been purposely steering the business into the ground after multiple failed attempts to sell the business.
More pieces will start to come out and clues will surface if you pay close enough attention to communications that are broadcast to the masses.
Very astute comment postid @LCCtXzk-ceu
Does this sound like Follett? Maybe this is why Follett's acquisitions don't pay off. it's better to pay a little too much for a good business than to get a bargain on a company that doesn't have much of a future.
Follett will sell because they can make a better return investing in the market, in addition Trump will be cutting capital gains so the family will make out like bandits.
You buy companies that are cheap to pump up the sales. That is the only method that Follett can use.
Using your logic, if you were not doing this why would you ruin and decimate your workforce through layoffs and lack of respect. Why would you get rid of the higher paid employees and not the poor performers like other companies would.
Speaking of buying companies be serious, everyone of them is in the declining stage of their life. Woodys, Advanced online, Valore and Baker and Taylor. Every single one of them is under performing Follett's expectations. Woody's is now just a development team that will have the wholesale IT team reporting to them.
this theory doesn't make sense... why steer into the ground or try to sell if we're buying up companies several times a year? time to take the tinfoil hat off guys...
We know that Follett has wanted to sell from when Chuckee was the the CEO, but no takers then and no takers now.
It makes sense that RG has been so ruthless with employee careers and targeting the long tenure/higher paid employees, even if it means losing significant knowledge of the business and industry.
It makes sense why every decision made by senior leadership is short term in nature with a focus on improving the bottom line. Seasoned leaders do not sacrifice long term success for short term profits unless they are short term and focused on bonus AND improve the financials for a short period.
It makes sense why IT is heading back to the business units, and more importantly will actually report to the business leadership. Business leadership will push hard on IT to deliver and make cuts were necessary.
It makes sense that they can eliminate IT CIO/VP's at the corporate level and save 1 million+ since all of IT will be decentralized.
It makes sense why ORPOS, SKYO and Retalon were not written off even though they have no useful life or useful value.
Think about it, even by RG's numbers, we lost money last year, we will be very close to goal this year, and forecasting even higher profit next year with declining sales. Impressive results and certainly looks much better to a potential buyer.
This is exactly the model Baker and Taylor took several years ago. Struggling wholesaler trying to sell themselves for years with no takers. Taken over by investment capital group that ruthlessly focused on cutting expenses and improving financials. Lo and behold, Follett buys Baker and Taylor, despite looking at buying them several times years earlier.