1) Continued and continuous loss of market share to direct and indirect competitors.
2) Market value now consistently less than OMX. OMX was once the joke of the industry, now the joke is on OPD.
Niche retail space for office supplies supports at most one major player. Two if you squint real hard, but I ain't buying it. ODP is now three in the space and dropping fast. No room for three in the space, no way, no how.
3) Some cash in the bank, but something like 400 million in bullet bond debt due in the next couple of years. No capex to fund growth and hence, compete effectively, little substantive cash flow after debt service.
4) Selling at whatever they can get, margin be damned, yet still unbroken quarter over quarter revenue decline, still losing share. (See ODP last earnings call transcript. See SPLS transcript.)
5) Horrible real estate, laughably slow in converting stores to modern footprint and layout.
6) Extreme chainsaw approach to cost cutting as opposed to an intelligent strategy for bottom line reductions driven by operational efficiency concerns as opposed to what appears to be mindless hack and slash. No top line growth strategy apparent.
7) Rumors of accelerated talent flight at all levels of the organization.
8) Finally avoided yet another in a long string of money losing quarters. Achieved only by resorting to cutting the bottom line at an even faster rate than loss at the top line. Unsustainable.
9) No CEO. Odds of enticing Steve Jobs are zero. Odds of enticing anyone of even marginal capability to the helm near zero.
10) Executive management is 'meh' at best. No signs of the creative thought, drive, or spark necessary to reverse the inevitable trends or imaginatively transform the company.