Anyone else worried about the debt to equity ratio for HH Gregg? It looks a little too high to me. I realize that the collapse of Circuit City has provided a nice opportunity for HH Gregg to expand. It just seems to me that if anything goes wrong with their business model, things could get ugly in a hurry. Any thoughts????
Well, like my Pappy used to say, if you're going to have anything good you're going to have to go into debt to get it. If I were HHG, I'd be seriously looking over those soon to be abandoned CC locations, and lining up some financing.
Well.. For a company posting gains and supposedly doing so well.. growing and supposedly building new stores with cash and not credit (company officers claim to be "virtually debtfree"), it seems a little nasty, trite, and cruel, in this econony, to be dropping the commission rates on their employees. "Leverage" is definitely the word. With job prospects drying up, I suppose they figure they can get away with it.. and they probably will. Starts in March from what I hear. Circuit City's demise began with screwing with their sales staff. All in all, HHGregg has dropped their employees commissions about 4 times in the last 5 years (definitely not keeping with inflation, oddly enough, the longer one stays at HHGregg, as a commissioned employee, the less pay one receives.) They claim to have the most professional and well trained sales staff in the country.. It's a shame they do not intend to pay commensurately. Ironically, the manditory 200 or so hours of training HHgregg requires their sales employees to attend are also unpaid hours. I guess, in the short term, it means better cashflow not to pay employees what they are worth, but eventually, I would think, and maybe soon, company management will hit a threshold whereby quality sales staff will begin to make career choices that do not include a future at HHGregg.