#bankruptcy

Bankruptcy: more inevitable than Thanos.

Layoffs: a whole lot higher than 50% of the population.

This is coming from your friends across the highway in Deerfield (for now) at Essendant. Sycamore will destroy Walgreens and it will be torture before death. Watch out for yourself, try to get out, don't wait around for things to get better or any claims of severance payouts or bonuses. If not be ready for that day to happen at any moment. Don't get comfortable. This is just the beginning, they are not out for the best interests of the company or employees but rather their assets and any money they can su-k away. For a little context, at Essendant, they bought in their own management to play the game from the top. You have them now. First they need to get rid of employees so they would try to make people quit, RTO, unachievable goals, confusing business model/plans. Then they would change the severance policy, usually days before the layoffs and reduce it every time until there's nothing left. They will start selling off anything they can, in our case the core of the business, the warehouses, and business units they could get money for they sold. They sold off the core of the business, and all that remains is the empty shell of what once was a fortune 500 company. Always with the narrative it was low performing or best for the business. The top people will leave, they will torture anyone willing to stay on because they know they are desperate until the end. It might not have been great before, but it's surely not going to get any better. Also, it appears we will be abandoning Deerfield at the end of 2025 (in days), leaving the lease for the HQ building, with no plans on what will happen next. Bankruptcy maybe? Our parent company Staples is just holding on as well, and Quill also nearby saw their whole company be destroyed. All the other Sycamore holdings are also just barely existing just to keep those assets on a balance sheet so they can convince investors to move onto the next victim. Walgreens is and will be nothing more than a cash grab and a way to pad their holdings. There is no long term strategy, no business plan, and everything will just be scam. Just look at the partnerships with Amazon for their other businesses. It's all a distraction, and minor income, distracting from what is really happening. Wish you well and in closing, please care for yourself, find something else, f*** the PE.

This company is going to collapse, and you need to prepare yourself for that. I left many years ago because I saw the writing on the wall. The recent sale to private equity will not save the company; it's the final death knell. Let me tell you a little story:

I worked for Walgreens in the Pharmacy from 2005 until 2013. I enjoyed the work so much that I started to pursue a PharmD. The work was always grueling, and we were always strapped for time, even in the beginning. I remember working double shifts during hurricanes and eating on the back counter often because we didn't have time to take breaks. I've heard the pharmacy actually shuts down now for lunch...must be nice.

At any rate, from the time I started until the time I left, our budget was continuously reduced. We were asked to do more with less, and it wasn't just us who suffered, it was the customer experience as well. These are operational changes meant to increase margins or protect existing margins, but they are not strategic choices. The reason they were necessary at all is due to strategic missteps, but what were they?

Here it is, from this single strategic error, all subsequent failures originate: Walgreens as a company failed to see the entire market shifting beneath its feet. Their strategy was based on the following model: expand stores, expand sales per store, reduce costs, and reward shareholders. The company was, and still is, optimized for operational efficiency. This model was fundamentally obsolete the moment that CVS and Caremark merged to create a fully integrated pharmacy services provider.

They failed to realize that the number of stores or operational excellence is meaningless in an environment where the PBMs are now the locus of control. The PBMs control the formularies, and hence, demand. They set reimbursement rates, and hence, margin. The number of stores isn't an advantage in this environment. If anything, it's a vulnerability.

The most egregious part of all this, is that it was entirely predictable. It didn't happen overnight. Instead of shifting their strategy and trying to acquire their own PBM, WAG sold theirs off. Then in 2011, they tried to play chicken with Express Scripts, and again they were critically mistaken. The number of stores is not equivalent to bargaining power. They lost that fight, and were forced into a worse agreement because of it. From then on, they lost negotiating power permanently, and all other negotiations would be from a weakened position.

Were that not enough, they bought Boots in 2014, which again doesn't solve the issue of vertical integration. They were still operating under the assumption that expanding the footprint would lead to better profits.

In an act of desperation, they invested in Theranos, and I think we all know how that went.

So where did that lead them?

To the following negative feedback loop:

lower reimbursement -> lower margin

lower margin -> labor and store cuts

labor and store cuts -> worse customer experience

worse customer experience -> lower foot traffic

lower foot traffic -> lower sales and even weaker negotiating position

This loop will not stop, and it will not be broken by Private Equity. Those are the only tools private equity really has. They can make operational changes. They cannot solve the strategic failure. They cannot suddenly negotiate better deals with the PBMs without leverage. They cannot reverse the regulatory framework that allowed this level of vertical integration to happen. They cannot afford to vertically integrate themselves, and there are no PBMs that would be a viable target even if they could.

So, where does all that leave us? There is only one inevitable conclusion: bankruptcy.

I saw this coming and left. I ask you, do you trust the leadership that allowed the company to reach this state from a position of strength, to be able to turn it around from a position of weakness? They made countless strategic errors. Do you trust your career with them?

Saks Global Enterprises, facing limited options ahead of a more than $100 million debt payment due at the end of this month, is considering Chapter 11 bankruptcy as a last resort, according to people with knowledge of the situation.

https://www.foxbusiness.com/economy/irobot-co-founder-says-ftcs-opposition-amazon-deal-wrong-minded-following-bankruptcy-filing

The bankruptcy filing follows the termination of iRobot's proposed $1.4 billion acquisition by Amazon, which was abandoned in January 2024 amid a probe by the Federal Trade Commission (FTC) – led by Lina Khan – and European regulators. The FTC's antitrust investigation was focused on Amazon's ability to favor its own products over its rivals.

iRobot co-founder and former CEO Colin Angle told FOX Business in an interview that the FTC's decision to oppose the merger struck him as "wrong-minded" and harmful in retrospect.

"I bet if you asked almost anyone prior to the blocking of the deal with iRobot: Would you rather see iRobot innovating like crazy, coming out with new and better robots for your home, or would you like to see it file for Chapter 11 in the process of being sold to a Chinese manufacturer?" he said. "The wrong thing probably happened."

Xerox’s problem is brutally simple: more cash goes out than comes in. Every quarter.

The business isn’t generating enough cash to cover interest, restructuring, and working capital.

Why? Because Xerox is burning cash from operations. Not investing cash. Burning it.

To plug the gap, they’re selling patents and borrowing money using what’s left of their Intellectual Property as collateral, basically pawning the family silver to pay this month’s bills.

At the current pace, they’ve got maybe 6–9 months of runway if they keep pulling levers like asset sales and emergency loans; without those, it’s closer to 2–3 quarters.

Seeking a $500M IP-backed loan means unsecured financing is effectively closed (credit rating at CCC+ = markets price in a real risk of default).

This does NOT fix the business, it just buys time.

If cash doesn’t turn positive fast (not “less negative,” but actually positive), the only realistic outcomes are:

#1 More asset sales (DocuShare, XMPie, CareAR, etc)
#2 Forced recapitalization (debt converts to equity, shareholders wiped)
#3 Chapter 11 (court-supervised version of #2)

Everything else you hear is just nicer words around that math.

The endgame is no longer theoretical, it’s just a matter of timing.

https://www.investing.com/news/stock-market-news/xerox-seeks-500-million-ipbacked-loan-to-boost-liquidity--wsj-93CH-4408966

This is pure fraud and Trump needs to have Gary Cohen investigated!

They pushed all debt to 2029 push br all while paying themselves millions.They will start firing employees once investors start getting pissy but won't lower there salary. What happens when you hire a hillbilly CEO who sounds low IQ.

How can it not? Underpaid lackeys for decades training others, and core development is all outsourced.

Competitors with the good taste, rare talent and skill to innovate will make the company more and more irrelevant in due time as a guarantee.

1. Fiserv is billions of dollars in debt
   2.profits dropped by 25%
2. Clover lawsuit class action lawsuit underway.
3. Lawsuit from 44% drop in stock underway. Billions lost
4. Investment in AI with no immediate revenue stream to support it.
5. Investigation by Senate on contracts
6. Media stock analyst saying do not invest in Fiserv

a company that once was sold, got bankrupt and resurrected from the dead .... imagine all the cash these guys made/ will be making....

should we be suspicious ?

Will Frontier also face a massive lay off initiative?

Fiserv will come back from this. I believe Fiserv will declare bankruptcy and will be broken apart and sold off.

Where would you chronic whiners ever find your next job if Targets did.

A leading solar energy development firm in North Carolina is closing its Asheville plant and laying off more than 78% of its workforce as it files for bankruptcy due to renewable energy policy changes under the Trump administration.

https://www.yahoo.com/news/articles/nc-solar-plant-closing-cutting-102700021.html

Lawsuit settlement + 28 billion debt + loss of key clients = ????

A. Bankruptcy
B. Breakup and sale

One of the questions asked was: is there risk of bankruptcy, assuming this spouted from someone who heard one of the many 3rd party analyst saying there is a high risk of such an event.

The answer from SB was: Absolutely not, as long as we execute.

A great follow up would have been; Is there risk of not executing going forward? Looking back we’ve had 12 quarters of not executing, what changed?

News travels fast, as it should...

https://www.hodinkee.com/articles/fossil-is-restructuring-as-debt-and-tariffs-take-toll

..... if the end is bankruptcy or sold off so be it. Just please pay severance

https://m.economictimes.com/news/international/us/huntington-bank-to-acquire-cadence-bank-for-7-4-billion-stock-falls/amp_articleshow/124851773.cms

The combined bank will be bankrupt by 2027. Two of the worst mismanaged banks out there. Who will go under first? Pinnacle/Synovua or Huntington/Cadence?

RamNot won’t shut up about his special sauce. Newsflash, it’s ketchup in a champagne bottle. Revenue’s tanking, cash flow’s drying up, and those “bookings” are yesterday’s scraps served with a smile. If this is his magic formula, someone needs to tell the chef and his CFO they are cooking bankruptcy.

Petrofac a North Sea oil and energy services group, could file for insolvency as early as Monday morning before markets open, it has been reported.
The company’s board is reportedly holding emergency meetings over the weekend to discuss the possible collapse of the firm, putting around 2,000 jobs in Scotland under risk.

They did some shady stuff and they completely went full negligent…does the market reward this behavior or break it up into regional pieces….

Shell and BP are using their services

Fossil Europe bankruptcy

The absurd gifts and celebrities for the holiday gala can't overtake the news...we still aren't paying vendors even after a 600 million bucks cash infusion..With sales down so drastic it may be time to throw in the towel..

Exit North Sea ASAP…who in the he-l will buy 3 Billion dollars worth of liability that is now producing less than 12,000 bopd…

Return the assets to BP for abandonment. Bankrupt the company in 2026 and keep the good pieces…. Just like Fieldwood did to Apache…

Most deep dive analyst are now predicting bankruptcy as soon as 2026. Even with stock going so low nobody will buy the company.
Get what you can out of the pension fund now.
The cuts were just a show, most were at or near retirement age.
With no raises and flex PTO and no 401K match in 2026 is a sure sign of bankruptcy planning.

I work at Spirit and I don’t know what to think anymore. The company just got court approval for $475 million in financing to keep things running during bankruptcy, but everyone here knows what that really means. Chapter 11 sounds like a plan to reorganize, but for the people doing the day-to-day work, it usually means job cuts, unpaid overtime, and endless waiting for answers that never come.

Management keeps saying operations will continue as normal, but that's not helping morale. Some teams are already being told to cut spending and delay projects, and everyone’s whispering about more potential furloughs. I’ve seen this kind of thing before in other airlines, and it always starts with a few quiet layoffs before the bigger rounds hit. I really hope they handle this the right way, but most of us are just bracing ourselves and hoping to survive the next few months.

Investment bank Jefferies disclosed on Wednesday that its Leucadia Asset Management fund holds about $715 million in receivables linked to bankrupt auto-parts maker First Brands Group.

https://www.reuters.com/business/finance/jefferies-discloses-715-million-fund-exposure-first-brands-bankruptcy-2025-10-08/

Apache has several headwinds ahead that could alter the company’s outlook and trajectory.
Abandonment liabilities increasing into the +4 billion dollar range as North Sea and Fieldwood combine to create a very significant financial drag.
Permian basin starting to show signs off deliverability well issues as wells enter the post flush phase…that long runway is looking less attractive.
Gran Morgu…aka Deepwater Alpine High…something is off here…like a purposeful delay and concern from project manager…that the promised 250,000 bopd peak may actually be closer to half advertised and with high decline rates

1) shed deadweight
2) produce more runway to stave off bankruptcy
3) generate lift

We’re kinda at 2/2.5. The lift generation isn’t obvious yet.

More than 70% of the Sycamore deal is financed through debt, meaning that the private equity firm doesn’t have “much skin in the game,” according to Parr. The risks of bankruptcy are especially troubling, according to the Private Equity Stakeholder Project. In the first quarter of this year alone, 70% of large U.S. corporate bankruptcies involved private equity-owned companies, despite private equity making up only 6.5% of the economy.

Wow, for years they tried to offload this and finally when the hammer hit file for bankruptcy. Would CVS be on the hook for the fine? Otherwise what does an acquisition mean?

Spirit plans to slash capacity by about 25% this fall as part of its bankruptcy restructuring, a move that will likely trigger more layoffs at the struggling ultra-low-cost carrier.

In a memo to employees, President and CEO Dave Davis said the change will make Spirit’s operations more resilient and efficient.

“A key pillar of our restructuring is redesigning and strengthening our network,” Davis wrote. “With that in mind, later this afternoon, our operational leaders will receive our preliminary November schedule. As planning begins, you will see a reduction of about 25% in capacity, year over year, as we optimize our network to focus on our strongest markets.”

https://airlinegeeks.com/2025/09/18/spirit-to-cut-capacity-by-25/

If Intel weren’t as massive as it is and didn’t have its long history propping it up, it would’ve been looking at Chapter 11 or even Chapter 7 a long time ago.

Planta, which opened in 2016 and focuses on 100% plant-based dining, will shrink from 18 total locations to eight after a judge signed off on its bankruptcy plan. The company filed for bankruptcy in May and was reported to be facing between $10 million and $50 million in liabilities with almost no assets at the time.

https://country.iheart.com/content/2025-09-15-popular-restaurant-chain-closes-majority-of-locations-after-bankruptcy/

I thought the idea for tariffs is to create manufacturers and jobs in the U.S. https://www.thestreet.com/retail/critical-us-manufacturing-company-files-chapter-11-bankruptcy

Or starvation stories. Either will be interesting

Rite Aid is shutting down after filing for Chapter 11 bankruptcy for the second time on May 5, 2025.

It has filed 19 separate notices of store closures, raising the total number of shuttered locations to 1,288 across multiple states.

Recent filings add seven more closures in Washington and Oregon. Rite Aid had previously closed about 800 stores following its 2023 bankruptcy.

The chain is now winding down completely and disappearing from the U.S. retail landscape.

Twice in one year, that can't be good. I'm pretty sure we're sc--wed.