$25M Writedown

[Anonymous]

looks like a small downpayment. It's charges for just this month. It doesn't include charges for the real estate, etc. The market is acting like they were able to spend $25M to avoid $150M in expenses.

They also claim that the notices are just being given now? How nutting is that to throw the company into a tizzy, get anyone who get another job to do so and then more than 45 days later finally do it. And, that, when it was all about 15 months late to begin with. That 45 days of thumb twiddling cost nearly $20M in employee costs alone.

What is happening here? Was this the way to maximize the cost and minimized keeping good people who could prevent the BoD plan from closing up shop quickly?

 

[Anonymous]

Without doubt, the way the restructuring is being done will get the company closed sooner rather than later.

$150M has been tossed around as the cost. That's probably pretty good, but there will be more hidden. For example the $20M you mention spent on salaries before the notices when back. The millions spent to rehire and train replacements for the people who quit rather than wait more than 45 days to find out if they were on the list, real estate costs will get hidden (they are paying rent on a corporate HQ in NJ near the plant they are closing. There is no longer money to mover there, unless they want to burn another $20M to get the doors closed a few weeks sooner).

The company was set to lose $180M for the last half year. With declining sales and these costs, it will be at least $250M if they hide things to next year, over $350M if they decide to really take all the real estate and other hits now to get it over.

I think they will keep hiding so earnings call after earnings call can be problematic, but there will be no more than 3 more.

 

[Anonymous]

"$150M has been tossed around as the cost."

"but there will be no more than 3 more."

Says who? you? None of your wild accusations have come true in the last 14 months and I guarantee this silly nonsense will not either. Your writing is getting more outrageous and more desperate.

 

[Anonymous]

I don't think any negative prediction about D'Enron has failed to come true. That's the nature of a company that makes a run from $57 to $4 after criminal activity by upper management who are still all around.