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hhgregg, Inc. Message Board

  • danalcott danalcott Feb 6, 2009 7:48 PM Flag

    Leverage

    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????

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    • 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.

      Create some jobs and go after Best Buy. Yeah.

      Investors would eat that shit up!

      Peace.

      • 1 Reply to offensive_is_my_name
      • the_late_great_polyester_pete the_late_great_polyester_pete Feb 11, 2009 3:43 PM Flag

        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.

 
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