I have a relative who worked there many years ago. They made more and more mistakes during his tenure. Kept cutting and eliminating the marketing and research groups. Cut down other fairly important areas, too. From what I remember being told, upper management "knew" more than everyone else and stubborn, old school types weeded out anyone who objected or tried to explain why their actions were creating irreparable damage.
It would be one thing to outsource marketing and research but to practically eliminate it is plain stupid. Only one of many poor decisions I heard about. I never traded RSH back then because of this knowledge. The only thing I feel really good about was keeping an eye on the stock and helping this person unload RSH stock in the 20s back in early 2010. He had a ton of options and stock, even though he had been let go a few years before. He hadn't even been paying attention to them and nearly lost out on some options that would have disappeared if he hadn't exercised them. Tens of thousands of dollars, possibly 100K or more.... A good deed done by me, that's for sure!!
As to their future, probably some value in their real estate. I would think a complete overhaul and name change could turn things around. Probably needs a strong partner who needs retail outlets... could be about the only possible white knight? |
