Staples for Sale
In 2015, Staples and Office Depot decided they wanted to merge. After several lawsuits and disapproval from the FTC, both companies called the merger off. This caused both companies’ stocks to drop and lose thousands of investors.
Now, Staples ($SPLS) is back on the market. According to a report by The Wall Street Journal, the office supply chain is in talks with private equity firms to find a new owner. The publicly traded company has a market cap of $6.81 billion, but potential buyers allegedly value the company at $7 billion. This is good news for the company’s shareholders, who saw $SPLS jump in value by 9.82% yesterday upon hearing buyout talks. The idea is that someone else can run Staples better than Staples, which would help the company’s profits and let them stay on top during a terrible retail market.
Payless ShoeSource, the discount shoe retailer with thousands of locations, is filing for Chapter 11 bankruptcy. During the bankruptcy process, the retailer will close 400 of their 4,000 stores, or 10% of all locations. Despite the massive closure and layoffs to come, Payless will continue operating in stand-alone stores and malls around the world. According to the company’s CEO, Paul Jones, the worsening retail environment (“which will only intensify”) is to blame for the stores’ poor performance.
A Good Wells Fargo Story
In 2010, a Wells Fargo manager reported two of his employees for fraud to the company’s ethics department. Shortly after, he was told to move elsewhere in the company or lose his job. When he couldn’t find a similar position, Wells Fargo let him go.
After a lawsuit claiming that the former Wells Fargo employee couldn’t find a job after his termination, Wells Fargo must now hire their former manager back. They also owe him $5.4 million in wages he missed out on since his termination. the Department of Labor’s Occupational Safety and Health Administration (or OSHA) made the legal decision, forcing Wells Fargo’s rehire despite the company’s reluctance to do so. Believe it or not, this case has nothing to do with the massive fraud Wells Fargo perpetrated against their own customers for the last several years.
The Worst Corporate Video of All Time
Motorola made a rap video celebrating the first-ever cell phone call. It did not go well. Take a look: