Quotulatiousness

October 21, 2023

“… we’re not a business publication. One of them can point out that corporate governance is a joke in Canada”

Filed under: Books, Business, Cancon, Media — Tags: , — Nicholas @ 04:00

In the latest SHuSH newsletter, Ken Whyte reviews a recent BNN Bloomberg interview with Heather Reisman former-and-now-current-again CEO of Canada’s only big box book retailer, Indigo:

“Indigo Books and Music” by Open Grid Scheduler / Grid Engine is licensed under CC0 1.0

Heather Reisman gave an interview to Amanda Lang of BNN Bloomberg last week, her first effort to explain a summer of screwball management at Canada’s only bricks-and-mortar book chain.

[…]

How did Heather explain the zany sequence of events that started with her reporting Indigo’s fourth massive annual loss in five years in May; saw her booted in June from her role as executive chairman of Indigo, the company she founded, by her husband and controlling shareholder, Gerry Schwartz, along with every member of the board of directors who wasn’t personally beholden to Gerry; saw her spin her exit as a personal life-stages choice (“deciding when it is time to move on is one of the toughest decisions a founder must make”); saw her hand-picked successor and CEO, long-time British clothing retailer Peter Ruis, grab a seven-figure payout and make his own exit in September; saw the company announce that it would “act swiftly to find the right leader to move the company forward following Peter’s resignation”; saw Heather reinstated at the head of the chain two weeks later?

She didn’t. How could anyone explain that?

Heather bullshitted her way through the interview. It was all Ruis’s fault, she told Amanda. Indigo “took a journey off brand” under Ruis. She’d put him in charge of a book chain and “suddenly I was hearing that we were getting famous for selling $550 barbecues,” she said. “Somehow vibrators turned up in our stores and I remember saying ‘no, that’s not who we are.'” Ruis had “lost sight of … what our commitment is to customers.” He was “taking the business in the wrong direction” and it was showing up in the financials.

Heather claimed she’d been powerless to stop Ruis: “I was gone formally for over a year and informally for two and a half years in the sense that I was pulling back and not able to influence things.”

I scarcely know where to start. We could talk about the breathtaking ease with which Heather presented herself as a victim of Ruis while running him over with a forklift. How she hired a career fashion retailer to run what most Canadians still understand as a book chain and complained that he took the business off brand. How his barbecues and dildo merchandising was a logical extension of the cheeseboards and blankets merchandising she’d been doing for a decade.

If we were a serious business publication, we’d have to talk about her supposed powerlessness to do anything about the dildo-happy Ruis. The people who run public companies have duties to their shareholders, one of which is to keep them informed—promptly, honestly, transparently—about the management of the business. If Heather was gone “formally for over a year” and “informally for two and a half years,” investors should have known, right?

Let’s start with “formally for over a year.” Heather is referring to the most recent period of September 2022 to August 2023 during which Barbecue Boy was CEO of the company. Was Heather gone?

She was no longer CEO, a title she’d held for a quarter century, but according to corporate records she remained executive chairman of Indigo during that time, drawing an annual salary of almost a million. Titles matter in public companies. The difference between an executive chairman and a run-of-the-mill chairman is that the former is recognized as having an active role in the operations of the business, hence the executive-level salary. Executive chairman is higher on the org chart than CEO. If the company was moving off brand, betraying its customers, she was the one person with the formal role and the moral authority, as founder, to send the “four hours of fun” Firefighter Vibrator from Smile Makers ($75.00) back to the warehouse. Either Heather misspoke to Amanda last week about being “gone” or she spent her last year at Indigo misrepresenting herself to her shareholders and drawing a salary under false pretenses.

Paul Krugman lives in a fantasy world where “The war on inflation is over. We won, at very little cost”

Filed under: Economics, Government, Media, Politics — Tags: , , , — Nicholas @ 03:00

Inflation continues to roar, despite calming words from government officials and legacy media pundits, as anyone who buys groceries could tell you. We long ago gave up going out for dinner, and now we’re very much living week-to-week and hoping the money lasts the whole month. Until my wife’s pension comes in late in the month, we’re utterly skint and trying to avoid spending any money at all. At Ace of Spades H.Q., Buck Throckmorton refutes the pro-government propaganda of, among others, Paul Krugman:

Monty used to use this image at Ace of Spades H.Q., and I certainly think it’s appropriate to include it here.

My household’s monthly grocery bill continues to steadily increase, despite the grocery list containing a pretty consistent basket of goods. We are spending more but not bringing home any more groceries. I am blessed that inflation has not forced us to cut back what we buy, but that hardly seems like an “expectation smashing” spending spree.

This article points out that several categories of retailers are not seeing any revenue growth at all, including clothing stores, electronics and appliance retailers, and sporting goods stores. In other words, these dry goods retailers are seeing declining unit sales as consumers are forced to redirect their decreasing purchasing power toward food, housing, and utilities.

    Sales excluding auto and gas increased 0.6%, above estimates for a 0.1% increase compiled by Bloomberg.

That 0.6% monthly increase in spending annualizes to a 7.2% increase in spending over one year. As we’ve discussed often, the government’s published inflation figures are completely fraudulent, with the Bureau of Labor Statistics reporting that as of September the annual inflation rate is just 3.7%, down from 4.0% in May 2023.

John Williams’ website (shadowstats.com) tracks inflation using the same measurements used in the Carter era. The chart below is updated through May 2023, showing the official 4% inflation as reported by the US government (red line) versus inflation if calculated the same way it was calculated in 1980 (blue line.) Actual inflation is more than 12%, which is 3 times the official bogus government figure.

Therefore, the “expectation smashing” consumer spending that the media is reporting is not even keeping up with actual inflation, which means that consumers are bringing home less in the way of retail goods, despite the increased dollar amount they are spending.

This tweet below is not a parody. Nobel Prize winning propagandist economist Paul Krugman actually stated that excluding food, energy and shelter, “The war on inflation is over. We won, at very little cost.”

Thanks, Mr. Krugman, that’s very helpful. While inflation may be out of control on food, energy, and shelter, those are unnecessary discretionary expenditures. If people will just forego extravagances such as feeding their families and putting a roof over their children’s heads, they’ll do just fine in Biden’s economy.

Magic In Metal (1969)

Filed under: Britain, Business, History — Tags: , , , , — Nicholas @ 02:00

PauliosVids
Published 15 Dec 2018

From the British Motor Corporation Ltd (BMC).

QotD: The US Army’s Korean War blooding

Filed under: Asia, China, History, Military, Quotations, USA — Tags: , , , , — Nicholas @ 01:00

There is much to military training that seems childish, stultifying, and even brutal. But one essential part of breaking men into military life is the removal of misfits — and in the service a man is a misfit who cannot obey orders, any orders, and who cannot stand immense and searing mental and physical pressure.

For his own sake and for that of those around him, a man must be prepared for the awful, shrieking moment of truth when he realizes he is all alone on a hill ten thousand miles from home, and that he may be killed in the next second.

The young men of America, from whatever strata, are raised in a permissive society. The increasing alienation of their education from the harsher realities of life makes their reorientation, once enlisted, doubly important.

Prior to 1950 they got no reorientation. They put on the uniform, but continued to get by, doing things rather more or less. They had no time for sergeants.

As discipline deteriorated, the generals themselves were hardly affected. They still had their position, their pomp and ceremonies. Surrounded by professionals of the old school, largely field rank, they still thought their rod was iron, for, seemingly, their own orders were obeyed.

But ground battle is a series of platoon actions. No longer can a field commander stand on a hill, like Lee or Grant, and oversee his formations. Orders in combat — the orders that kill men or get them killed, are not given by generals, or even by majors. They are given by lieutenants and sergeants, and sometimes by PFC’s.

When a sergeant gives a soldier an order in battle, it must have the same weight as that of a four-star general.

Such orders cannot be given by men who are some of the boys. Men willingly take orders to die only from those they are trained to regard as superior beings.

It was not until the summer of 1950, when the legions went forth, that the generals realized what they had agreed to, and what they had wrought.

The Old Army, outcast and alien and remote from the warm bosom of society, officer and man alike, ordered into Korea, would have gone without questioning. It would have died without counting. As on Bataan, it would not have listened for the angel’s trumpet or the clarion call. It would have heard the hard sound of its own bugles, and hard-bitten, cynical, wise in bitter ways, it would have kept its eyes on its sergeants.

It would have died. It would have retreated, or surrendered, only in the last extremity. In the enemy prison camps, exhausted, sick, it would have spat upon its captors, despising them to the last.

It would have died, but it might have held.

T.R. Fehrenbach, This Kind of War: A Study in Unpreparedness, 1963.

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