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I AM A KOOK

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Reply with quote  #1 
Rumor has it that USFoods will be declaring Bankruptcy next week.  Any truth to this or can we just count this as worthless rumor.  Any major changes coming down the pike for them.  
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Reply with quote  #2 
KKR bought $500 million preferred stock in USF weeks ago.

How does bankrupcy mesh with that?
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food rep in NC

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Reply with quote  #3 
How do they continue to get groceries to sell? They aren’t paying any vendors?
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formerdsr

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Reply with quote  #4 
Any bets on KKR inviting the boys at CD&R to come back, and take USF private again? There was less pressure when we didn't have to answer to shareholders.
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Reply with quote  #5 
Quote:
Originally Posted by Spilt_milk
First, if there was any chance of bankruptcy they wouldn’t have followed thru with the smart cash acquisition.  Second, KKR wouldn't have thrown a cool half bill at us if we even smelled of bankruptcy.


That's like believing a prostitute would stop turning tricks if she found out she had contracted gonorrhea. These entities like US Foods and the financial parasites that stand behind them are more dangerous (and causal ) than Covid 19. 
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Reply with quote  #6 
Quote:
Originally Posted by Spilt_milk
I’d believe the prostitutes word over yours. With or without penicillin.


It takes one to know one 
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IKnowStuff

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Reply with quote  #7 

if you read this little mention, it sounds like everything is on the table. If KKR wants to make their money back and make a profit, a merger or liquidation is probably the quickest way. Selling it for parts would probably pay their (US Foods)huge debt and turn a nice profit. I guess we will see what happens next week? 


https://seekingalpha.com/news/3577033-us-foods-holding-up-4-after-kkr-reports-stake

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formerdsr

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Reply with quote  #8 
I'm sure KKR and the brain trust in Rosemont are already figuring out ways to make a killing regardless of what happens to the rank-and-file employees. 

Quote:
Originally Posted by IKnowStuff

if you read this little mention, it sounds like everything is on the table. If KKR wants to make their money back and make a profit, a merger or liquidation is probably the quickest way. Selling it for parts would probably pay their (US Foods)huge debt and turn a nice profit. I guess we will see what happens next week? 


https://seekingalpha.com/news/3577033-us-foods-holding-up-4-after-kkr-reports-stake

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Ole Foodie

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Reply with quote  #9 
US Foods started a trend years ago with a different way to go to market. Most of this was driven from the retail space as the powers to be were retail not Foodservice oriented. Not saying it was the right or wrong way but it was different. So many fought it for years and many decided to leave and look at other broadliners. PFG in some states made out like a bandit and gained tons of quality people whom were not ready to call it quits. This still did not deter US Foods and the ones that stayed acclimated themselves to a new way of sales. This company has endured so many changes over the last 10-12 years it amazes me that it is still around. The reduction in staff over the years has hurt this company in more ways than one. The spending sprees over the years have done nothing but broke the bank with nothing to show but going back to KKR and most likely another partner named later. ROS and sustained earnings have been lackluster at best. US Foods will survive but could be much smaller? Who knows what will happen. Being the only one of two broadliners in the country who can cover coast to coast customers may prove a valuable asset to sell when the time comes!! Wait n See!!
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Reply with quote  #10 
Sysco merger again.
Best time to reattempt
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formerdsr

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Reply with quote  #11 
I'm an old-timer. I spent 42 years with US Foods and its predecessor companies. We went out and sold our brains out. Lots of promos and spiffs. Remember Heinz Points? You could get a Mercedes coupe for 2,000,000 points. Promo money wasn't counted or reported as income.

When US Foodservice re-branded itself as US Foods, and introduced Scoop, it went from being a foodservice distributor to a marketing company. Scoop became the main focus of our sales effort. Sysco followed suit. Instead of each sales rep being an individual with his/her own style, the new way was "This is want we want you to sell. This is how we want you to sell it." This allowed smaller companies to get into our accounts by actually listening to the customers and taking care of their needs. Not to mention their pricing was much better. 

The aborted USF/Sysco merger was another impediment to getting sales. Sysco reps were out telling USF customers to switch now because their USF rep would be gone once the merger was completed. Again, independents stepped up by increasing their lines and aggressively pursuing USF and Sysco business. Many customers told US reps they would find a new distributor because they hated (their word, not mine) Sysco. 

Now KKR has come back to pump money into USF. Shades of the Jim Miller scandal 17 years ago. Will they call their buddies at CD&R to come back, and take the company private again? Or will they sell off pieces of USF to regional competitors? What will happen to the purchase of the cash-and-carry company in the Northwest?
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Reply with quote  #12 
Here is the KKR advisor  Nate Taylor just assigned to US Foods Board to discuss and advise mergers, liquidation etc. His email is available so why dont you all ask him his plans intentions.

https://www.kkr.com/our-firm/leadership/nate-taylor


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Reply with quote  #13 
By the way a few months ago some astute poster claimed Premier the big healthcare GPO accounted for as much as $8 billion to $10 billion of US Foods total sales (making this distributor in reality much smaller than some of the regional guys). If this is true how can all these actions by KKR and others be taken without considering how Premiere might respond to all these shenanigans? 
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Ole Foodie

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Reply with quote  #14 
Premier still has control over US Foods for now. The powers to be at Premier have long looked at making moves but they have member partners that have a say and most of those will not like having Sysco to deal with. Sysco does not play the games and most likely would challenge the GPO world pretty hard. When all of this is said and done, the GPO world will have a task at hand of renegotiating many of their agreements for the future! Local regional distributors that can weather the storm, will have an opportunity to seize market share. The next 6-18 months will be a challenge for all!
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seafoodmaniac

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Reply with quote  #15 
I'm probably incorrect here so someone can fact check and correct me.
Premier is associated with Avendra which ways purchased by ARA who does business with Sysco - Correct?
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formerdsr

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Reply with quote  #16 
I think Premier and Avendra are separate, but I could be wrong.

Quote:
Originally Posted by seafoodmaniac
I'm probably incorrect here so someone can fact check and correct me.
Premier is associated with Avendra which ways purchased by ARA who does business with Sysco - Correct?
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