Help Save Market Basket!!!

[Bigstan]

Originally Posted by secondcurve

Stan: when you are taking massive dividends they must be paid for in some manner such as increased prices, reduced benefits and/or limited capital expenditures. This is a penny business and choices must be made. I agree that customers shouldn't be harassed and as I posted above I don't think this is happening in a meaningful way. I also don't think the employees are trying to close the business rather they are trying to drive it in a direction that is mutually beneficial for capital, labor and customers. Further, when a massive non unionized workforce pulls together with this much moxie they know exactly what the facts are. One of the owners has a black hat and one has a white hat. It is cut and dry.

You are making my point for me.

Are you saying the board came in one day and said lets take a $300m distribution, we can pay for it by raising prices?

Or did they say we have a huge amount of cash on the balance sheet, lets pocket some and we'll still have plenty left? You don't know the distribution schedule, this could have been planned for some time.

You don't know, and I don't know - but to say the only way to pay for a distribution is to raise prices or reduce spending/benefits is overly simplistic and not true. Companies accrue cash - at some point you do something with it.

Again - your theory is based on an assumption that cannot be proven. You assume prices will have to be raised, I see no reason why that is the only reasonable scenario.

[dave603]

Originally Posted by Bigstan

You are making my point for me.

Are you saying the board came in one day and said lets take a $300m distribution, we can pay for it by raising prices?

Or did they say we have a huge amount of cash on the balance sheet, lets pocket some and we'll still have plenty left? You don't know the distribution schedule, this could have been planned for some time.

You don't know, and I don't know - but to say the only way to pay for a distribution is to raise prices or reduce spending/benefits is overly simplistic and not true. Companies accrue cash - at some point you do something with it.

Again - your theory is based on an assumption that cannot be proven. You assume prices will have to be raised, I see no reason why that is the only reasonable scenario.

The problem with that is, that money was slated to open new stores, some that were being built and some already built. They didn't open them. check into the new building in Waltham Ma. it's built and not opened, and has been for some time, so it has nothing to do with the current situation, they took the money instead of opening the stores.

[Bigstan]

Originally Posted by dave603

The problem with that is, that money was slated to open new stores, some that were being built and some already built. They didn't open them. check into the new building in Waltham Ma. it's built and not opened, and has been for some time, so it has nothing to do with the current situation, they took the money instead of opening the stores.

I can look out my window and see that building - it is far from ready. There are a thousand reasons that (and other) construction in the area have been slowed down or stopped. It took them two years to open a Panera down the road for similar reasons.

As for the developer of that site - they are proceeding regardless ( http://1265main.wordpress.com/ ).

In their current state they will not be moving in anywhere anytime soon, agreed. There are certainly contractual obligations involved and I am sure they will have to adhere to them. But if the status quo doesn't change you should not be worrying about new stores, you should be worrying about there being any stores.

[dpg]

Originally Posted by Bigstan

I can look out my window and see that building - it is far from ready. There are a thousand reasons that (and other) construction in the area have been slowed down or stopped. It took them two years to open a Panera down the road for similar reasons.

As for the developer of that site - they are proceeding regardless ( http://1265main.wordpress.com/ ).

In their current state they will not be moving in anywhere anytime soon, agreed. There are certainly contractual obligations involved and I am sure they will have to adhere to them. But if the status quo doesn't change you should not be worrying about new stores, you should be worrying about there being any stores.

Waltham is no where near ready inside, I live 8 or 9 miles down the street. It's not sitting ready to open (yet.) Maybe I'm wrong but I've always heard late fall 2014. IF that's true it seems to be on track.

[dave603]

http://www.bostonglobe.com/business/...RJJ/story.html

[SIKSUKR]

That pretty much says it all. What the heck is the BOD's mindset right now? What a mess.

[fatlazyless]

...just drove past the proposed MB site in Plymouth and saw Artie T and Artie S together, shaking hands and both holding up a large gold shovel together, posing for the camera, as they broke ground at the new Plymouth NH Market Basket ...... scheduled to open on Halloween-2015 ..... trick or treat!

[AB_Monterey]

My understanding was that the company is debt free.

The AS side wants to take on debt to pay themselves hefty bonuses.

This is NOT a case of cash on hand that needs to be distributed.

That seems like a poor business decision to me. That debt will need to be repaid and that money will come from somewhere.