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dawg1981

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Reply with quote  #1 
What's going on here?
They have been losing all of their top lines for quite awhile now.

https://www.jaxdailyrecord.com/article/jacksonville-based-acosta-to-file-prepackaged-chapter-11-bankruptcy-reorganization-plan

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Reply with quote  #2 
This bankruptcy is really a transfer of ownership for $3 billion. Acosta's creditors now own the right to collect a larger portion of the $2.3 billion annual income stream. I'd look for much cost cutting at the worthless executive overhead level. 

But the financiers that financed all this Acosta driven broker consolidation are now the equity owners and therefore can stiff some 3rd party just as they could have gotten stiffed in a standard bankruptcy reorg. Let the orgie begin.
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brokerexpert

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Reply with quote  #3 
The cost cutting has been going on for some time, which is the problem. You can't carry debt with the clients cutting commissions to 1% in the retail and foodservice business. They aren't making any money.
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brokerexpert

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Reply with quote  #4 
Quote:
Originally Posted by dawg1981
What's going on here?
They have been losing all of their top lines for quite awhile now.

https://www.jaxdailyrecord.com/article/jacksonville-based-acosta-to-file-prepackaged-chapter-11-bankruptcy-reorganization-plan

This is a retail driven company with a small foodservice division, and they haven't devoted the time or funds to the foodservice area. They have had a hiring freeze and haven't replaced people that have left, so some of the lines have left because of that and others have been resigned due to conflicts with existing retail lines that pay much more in total profit, so it is a combination. The commission rates are so low with many of these big retail companies that have a foodservice division that you can't afford to do all the work required for a very small commission rate. I am not defending them as they have totally mismanaged the foodservice business.
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Reply with quote  #5 
Going way back to Y2001, the Acosta story then ....

Marketing Specialist had a paltry 6,000 employees to go along with the paltry $315 million in debt. The debtors just took the creditors cash and closed up as fast as they could.

https://www.bizjournals.com/sanantonio/stories/2001/06/25/story5.html




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