Both Joez and Hudson were generating profits as seperate companies. When Joez bought Hudson with basically no money down and financed the whole thing things started falling apart. The amount of profit both companies were generating at the time with the pending syngergies things could have worked out. I just think the terms were way too steep at the onset. I eventually think Joez will Divest Hudson or someone will buy them both. paying cash to settle the debt and take both companys for 100 million with no debt generating around 180 million in Revenue could yeild significant Ebita over the next 4-6 qtrs. Just a matter of who wants this duo in their portfolio.. Both Joez and Hudson have a great following and are nice to have Brands..
if they paid off the loan and move on with Syngergies and zero debt they could easily get 1.5X rev so if rev is 210 million in 3 years they could easily get 300+ million or about 7 bucks a share..
Dont kid yourself, Marc was fired but i am sure due to his pre negotiated Exit he would have the chance to resign and keep his Stock, Owed Stock for plan year and At min one years Salary if Terminated including medical beneifits.. If you resign you dont get Severence or Cobra paid for... He was let go, And I beleive they got some type of Extension (6 months) on the loan and now are looking for either a Partner, Buyer or new Financing. My guess is they will get a buyer who will make a fortune if they have the Cash to pay off the debt
and contnue business without debt and reap 15-20 Million a year in profits.. Not a bad return on 100 million for a venture capaitalist.. Also after a few short years they could flip it for 250 Million..
I appreciate all views and Opinions.. Peter Kim has made his money with 2 sales. However his name is still on the company and he does not want his legacy to get F'd up IMO. They are doing business as usual both for Joez and Hudson. just saying we get back to a buck to clear Nasdaq and see what happens from there..
Joez valuation of 125 Million prior to the purchase of Hudson was based on 1.5 X revenue and No Debt for Joez and growing in single digits YOY.
The Debt is the Value of Hudson, So excluding that Joez is worth 125 million. or was until they bought Hudson..
Beside the Debt the business is solid with incresing sales and margins. This is set up nicely for a private firm to take them out and even with buying for 150 million in Cash or .75 Revenue this would easily be a 10%+ ROI on you their money with huge Tax gains as well.
Well actually i think they will not only survive but Flourish.. I Tweeted PK that he should take over as CEO of Both Joes/Hudson and he tweeted my back a big Like.. so that may be on the table. I also think that a Venture capital firm can come in and take out the kit and kaboodle for uner 200 Million including debt and earn about 5-8% on their money with huge write offs. Turn it profitable and sell it off in peices or as a whole to a larger Denim entity like TowerBrook Capital Partners who now owns True Religion. Consolidate shipping and Manufacturing even further to gain more profit. Just a matter of what Joe D and Peter kim want, Its their lifes work and as long as they are designers and get $$ they could care less who is banking it. Either way there is meat left here and some nice Pieces too. If sold the sale price would have to cover the debt 100 Million plus a pennys on the dollar for both names. I put a sale for both at 200 million or at .8-1.2 X Revenue for both
They are going to be bummin once they see the price at 1.75 at 3:00 today
Not surprising but I didnt expect it actually. I was hoping for a new Loan term to be announced and I assume they are now paying 14% Int. If they want to start making money and buying down debt they need better tloan erms of course..Should be interesting soon.
Joes/Hudson is a sucessful and popular set of brands and products which actually generates nice profits. If a VC can come in and take out the Debt, Consolidate the business further they could get nice returns-8-10% on their money and with huge Tax benefits. Will go private soon IMO but I dont think any home runs for shareholders.
Ahhh, if they did 10 million you would say GMCR does a billion. lol. Every location is providing Brand awareness.. Start small and if it works expand.. Smart.. we have to wait and see. The partnership with Subway is worth more than profit...
LOL, JAMN may be but their Partner who is one of the largest roaster in the world is not NOT Mother Parkers... :) Shows you have no clue about their business or expansion ability.
40 stores, 30 cups per store per day.. .15 cents a cup for MC X 365, then onto the rest of South America IMO... Annoument soon as per Tweet from CEO