Ruby Tuesday’s Case of the Mondays
Restaurant chain Ruby Tuesday ($RT) is falling on some hard times. After closing close to 100 locations last year, the company’s sales still aren’t up to snuff. Now with 613 restaurants in the United State, the company is looking to either sell their assets or merge with another company. This will help them stay afloat in the months and years to come; otherwise, they’d risk further decline and unthinkable measures (read: bankruptcy and liquidation). Upon releasing this news, the restaurant’s stock shot up over 24% or a whopping 42 cents. It is now worth $2.16 a share.
Neiman Marcus for Sale?
This decade has been particularly strange for Neiman Marcus. The luxury department store with 42 nationwide locations almost went public in 2013, but were bought by Ares Management (an asset manager) and the Canada Pension Plan Investment Board (exactly what it sounds like). In 2015, they were going to become a publicly again, but decided not to. Last year, the company was rumored to be up for sale again, this time through private investors or an acquisition.
Recently, however, the company announced that they’re looking to figure out how to stay afloat in this strange retail market, which could include being acquired or restructuring their $5 billion in debt. Hudson’s Bay, the Canadian owners of Saks Fifth Avenue and Gilt who are rumored to be in talks to buy Macy’s, are allegedly looking at acquiring Neiman Marcus. The deal would still see Neiman Marcus carrying the $5 billion in debt, though under a company that could better manage them and possibly turn their sales around.
Lesson: Don’t Create a Fake Bitcoin
A few years ago, California’s Steve Chen created a cryptocurrency called GemCoin that was supposedly just like Bitcoin. Unfortunately, Chen’s creation was fake and defrauded people out of millions. Chen and his companies will have to pay back $51.2 million plus interest to those he duped, while forking over $16.7 as a penalty for defrauding tens of thousands of people. For more on this case and the settlement, head over to Ars Technica.