The reason for this: GC is losing money and PSAV makes money (they bought out Swank AV last year).I agree this is a bad, bad deal.
GC is ONLY losing money because of the extremely high dept bourdon placed on them by Bain Capital and their way of doing business. While I don't know facts first hand, a buddy of mine who is a very long time employee of GC told me that GC had almost zero debt when Bain Capital bought them.
Survival of the fittest. "Let's get rich by being cheap!".
I'd be surprised if GC's only, or even primary, problem is Bain. Survival of the fittest. "Let's get rich by being cheap!".
http://www.reuters.com/article/2013/10/23/us-psav-sale-idUSBRE99M1EB20131023How long would it take for Bain to leverage PSAV into bankruptcy, causing all of their vendors to take massive losses which would in turn raise the prices to us to make up for the losses while PSAV would end up with all of those products and services for the cost of in house attorneys rather than actually having to pay real money for it.This is NOT good for our industry.
I'm not sure what GC has to do with this. JR
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