Will Smith’s Post

-Small Business Thursdays- Returning to our journey through Bernie Marcus' book, "Kick Up Some Dust," the last post ended Bernie and his partner flipping the tables on Panasonic's counterpart at the negotiation table by speaking in Yiddish. With the negotiations finalized, Panasonic began producing color TVs for Two Guys. Unfortunately, that train ride won't last forever. "Herbie died in 1964. His brother Sidney had left the business the year before, and the three guys now running it were not qualified to be at the helm. The company was ultimately crushed by unprofitable acquisitions and over-expansion." Bernie eventually quit. As he was courted by several retail conglomerates, he eventually ended up with Daylin. Unfortunately, corporate culture did not mesh with Bernie. Being a very blunt and matter of fact personality, it did not jive well with the platitudes of corporate speak during meetings. He quickly found himself demoted to manage Handy Dan subsidiary of Daylin. From there, he grew what was only six stores into eighty, expanding into multiple States. "Most of our competition sold about $3 million a year; we sold $5 million. Our team created a successful operation that had good cash flow and offered investors a solid return on their investment." However, even this train ride was going to be cut short. Daylin hired "Sanford C. 'Sandy' Sigoloff to turn the company around. Daylin filed for Chapter 11 reorganization the next month and was delisted from the New York Stock Exchange." This CEO made a reputation for himself for all the wrong reasons. "Over coffee on day, Sandy told me that he was not satisfied just getting rid of people. He wanted to punish them. He wanted to make them suffer. I hated his tactics and told him, 'When you treat people like that, it comes back to haunt you. People are scared of you.' What I thought might offend him actually made him proud. I could see that he really reveled in being a son of a -" Come meeting time to the board, Bernie was unaware that they were looking for a succession plan. Several of the board members vouched for Bernie and one even said, "I don't know why we are carrying on with all this hypothetical talk. We have the successor right here in this room - Bernie Marcus." Much to Sandy's chagrin, "The look on Sandy's face told me clearly that he did not agree, and I knew then that my days were numbered." Yet in every story there being a villain, there will be someone on the other side to help our main character. We'll see how Bernie gets out of this pickle next week!

We appreciate the recent follow up from the Memphis Business Journal and the resulting article. A few years ago they called us the 'billion dollar company that nobody had hear of', in their feature on Highline Warren. Our reaction then, as now, is that the partners who need to know us definitely do. They rely on us to create solutions for them through our unparalleled talent, footprint, set of capabilities, and unrivaled fill rates. Now that supply chains have normalized and business is once again firing on all cylinders those customers and suppliers depend on Highline Warren more than ever. We create simplicity in a large and fragmented industry and we remove complexity in the supply chain. Our story is simple: We help partners run their business more effectively by shipping at 98.5% fill rates anywhere in the country within 48hrs. Whether it's a full truckload or a single sku, we've got it and will get it to our customer. It shouldn't be a surprise that Highline Warren is growing faster than expected. We're laser focused on helping our partners achieve success by allowing them to focus on their growth, safe in the knowledge that we'll deliver their solutions.

Franchise Group, Inc. (FRG) - owners of The Vitamin Shoppe, Pet Supplies Plus, Buddy's Home Furnishings and American Freight Appliances & Furniture - filed for Chapter 11 bankruptcy to address its unsustainable debt of nearly $2 billion and overall financial struggles impacting its portfolio. While American Freight will be shut down due to sustained inflation and macroeconomic challenges, this move should allow FRG to restructure its operations comprehensively. The bankruptcy process enables the company to convert a significant portion of its debt to equity and secure $250 million in new financing, ensuring the continued operation of its other brands, including The Vitamin Shoppe, Pet Supplies Plus, and Buddy's Home Furnishings. This restructuring appears to be aimed at strengthening FRG's balance sheet and positioning its businesses for long-term success. By navigating this process, can FRG enhance support for its remaining brands and pursue growth trajectories that align with customer needs. What do you think? #FranchiseGroup #Bankruptcy #Restructuring #BusinessStrategy #RetailIndustry #FinancialRecovery

IN RETAIL NEWS… Big Lots Files for Bankruptcy, to Be Acquired by Nexus Capital for $620M Big Lots, the closeout retailer known for home goods and discount merchandise, has filed for Chapter 11 bankruptcy as part of a plan to restructure and transition ownership. Nexus Capital Management, a Los Angeles-based private equity firm, has agreed to acquire the company for $620 million, serving as a "stalking-horse" bidder in the bankruptcy process. This move will allow Big Lots to continue operations while streamlining its store footprint. As part of the Chapter 11 filing, Big Lots has secured $707.5 million in financing, including $35 million in new funding from current lenders. The retailer aims to optimize its business operations and return to profitability by 2025. CEO Bruce Thorn emphasized the company’s strategy to "optimize our store fleet in an orderly manner" and focus on a more efficient operational footprint. Big Lots joins a growing list of retailers seeking bankruptcy protection amid economic challenges. The company has already been closing stores, with plans to shutter up to 315 locations, and is assessing further cuts to its operations. Despite recent difficulties, Nexus Capital remains optimistic about Big Lots' future, believing in the company's potential for growth. If approved, the acquisition is expected to close by the end of 2024. Meanwhile, Big Lots continues to focus on improving comp sales and gross margins as part of its turnaround strategy. *** #BigLots #Retail #Business #Chapter11 #News #Economy #Chain #Stores 

Quick Quack is making waves with its rapid expansion into new markets, solidifying its reputation as a household name in the car wash industry. This particular ground lease deal was unique—at the time of closing, the car wash was still under construction. Here are some key takeaways from the transaction: 1.     California capital continues to be drawn to Texas: Our access to this investor segment played a pivotal role in this deal. Through our platform we secured a CA trade buyer and navigated construction delays to close right as the tenant’s rent commenced. 2.     Quick Quack’s growth and appeal are impressive: the chain has expanded from a single location in 2004 to become the 4th largest car wash in the country. We find that investors are drawn to the “internet-proof” concept and the tenant itself over other larger car wash concepts. The major investment from @KKR has further validated Quick Quacks growth. 3.     Houston’s retail momentum is formidable: Based on our level of market activity in the region we’ve gained a strong understanding and appreciation for the nuances of the suburbs and future growth trajectories. This this deal reflects just how vibrant the market is right now.

Check out this recent article in Crain's Cleveland Business to learn about our accelerated growth strategy! These are exciting times at Transtar Holdings Company and NMG! #Auto #Aftermarket #CrainsClevelandBusiness #WeAreHiring

🚧 Exciting Developments in the Building Materials Industry! 🚧 Acquisitions in the building material space continue to make headlines! 📰 True Value Company, the storied wholesaler, has filed for Chapter 11 bankruptcy and plans to sell to competitor Do it Best. For those of us in the building materials or real estate development industries, these names are well-known. But for others, here’s a quick overview: 🏗️ Founded in 1948, True Value has long been a cornerstone in the wholesale market, serving as a one-stop shop for independent dealers seeking top brand names at competitive prices. On the other hand, Do It Best is a cooperative that empowers its members—independent building material dealers—to leverage collective buying power for better pricing. This acquisition marks a significant moment in our industry! 📈 Do It Best CEO Dan Starr sees it as a generational growth opportunity. It will be fascinating to see how they integrate True Value into their existing model. Notably, this move comes as The Home Depot aggressively expands its pro business segment, targeting these very competitors. 🛠️ As the building materials landscape continues to evolve, it feels like a real-life Game of Thrones, with ongoing acquisitions reshaping the market. Who do you think will be the next to make a move? 🤔

Extra, extra, read all about it! 🗞️ Our 2024 quarter one blog post is now live. Read about the new franchise locations, the acquisition, and more! Next Day Access Quarter Review https://lnkd.in/ei4S3H52

💼 Tempur Sealy's Strategic Move: Divesting Stores to Advance Mattress Firm Acquisition 🛏️ Tempur Sealy International Inc. is making headlines with its proposed $4 billion acquisition of Mattress Firm, currently facing an antitrust challenge from the FTC. Here are the key points: Store Divestiture: Tempur Sealy plans to sell over 100 stores to move forward with the acquisition. Retail Locations: This includes 73 Mattress Firm locations and the Sleep Outfitters subsidiary, which consists of 103 specialty mattress stores and 7 distribution centers. Regulatory Challenge: The FTC unanimously voted to block the deal, claiming it will: * Suppress competition * Raise prices for consumers 💰 Court Hearings: Hearings for the FTC’s preliminary injunction are set to begin on November 12 in the U.S. District Court for the Southern District of Texas. Partnership with Mattress Warehouse: The divestiture involves a deal with Mattress Warehouse, which boasts: * Extensive mattress retail experience * A strong capital base 💪 Capable leadership * Ongoing Supply: Tempur Sealy will continue to supply its products, including Tempur-Pedic mattresses, to the stores involved in the divestiture. * Tempur Sealy CEO Scott Thompson emphasized the proactive approach in engaging with the FTC to ensure a smooth transition. 🔍 Legal Representation: * Tempur Sealy is represented by Cleary Gottlieb Steen & Hamilton LLP. * Mattress Firm is represented by Simpson Thacher & Bartlett LLP. https://lnkd.in/eCTMSKBq

Here’s how I went from café assistant to business owner… My journey into entrepreneurship began during my school holidays when I worked alongside my parents in their café. Those early experiences instilled in me a strong work ethic and an understanding of what underpins small businesses; customer service. My interest in property was sparked at a young age, thanks to the guidance of my late father. At just 16, I had the opportunity to dive into the industry when a customer offered me a position at their estate agency branch in Surrey. Despite my youth, I quickly found my stride and excelled in roles ranging from investment to acquisitions. By the age of 20, I was advising seasoned investors on off-market property transactions, drawing on years of hands-on experience in the field. With a deep understanding of the industry and a drive to make a difference, I founded Magna Partners. At Magna Partners, we specialise in new build and off-plan property investments. We’re proud to say that we receive over 50 projects monthly from developers, but we will only ever select a handful to work with. Having established a successful business model with Magna Partners, prioritising client satisfaction and long-term success; my journey from the café to founding Magna Partners has taught me valuable lessons about the long-term nature of both property investments and career paths. It’s not just about the short-term gains; it’s about building something sustainable and meaningful. Knowing this I will always believe that taking a consultative approach with our clients, focusing on their long-term goals rather than quick transactions, will continue to be the way forward. Keep going, John. #property #journey #investing #consulting