At this time of the year, thoughts definitely turn to the Man with the Bag, and CEOs all over the country ask, “Have I been naughty or nice?”
And as we all know, Old Kris Kringle keeps a couple lists on his iPad. Those of you who think only kids reach out to Santa when it comes to letting him know what would look good under the tree are clearly a little out of touch.
As luck would have it, I have a source at the North Pole who’s shared a few emails and texts with me from companies in Marin.
How about a nice IPO under the tree?
Dear Nick,
As you know, we’d like to become a public company again. I know, I know, we were a public company before and then we went private when we got a nice offer from Catterton Partners. It’s complicated.
As you know, we’d like to become a public company again. I know, I know, we were a public company before and then we went private when we got a nice offer from Catterton Partners. It’s complicated.
Anyway, they’d like to have their money back now, so we want to do an IPO, not huge, just $150 million or so. Anything you could do to ease the way would certainly be appreciated.
Yours in hoping for a decent share price,
Gary Friedman, CEO
“Resto,” as it’s known in the trade, may need more than help from Santa on this one. Though its revenues were up 27 percent for the six months ending July 30, the 87-store chain has locked on to the elite when it comes to its target buyer. With a couch priced at almost $10,000 and an ottoman at $1,300, it’s the upper crust who are shopping their showrooms. Among the locations opened this year are East Hampton, New York and Beverly Hills.
Guess it’s like Willie Sutton said when they asked why he robbed banks—that’s where the money is.
Not unlike children hoping to find the hottest toy under the tree, other companies want IPOs as well. Take, for instance, Circle Bank of Novato. It’s been planning a $30 million IPO since October 2010 and has yet to close the deal. At this writing, a day before the World Series begins, the bank is still like a boy on a sidewalk outside a toy store, looking at what he wants but, for some reason, can’t have.
The bank last updated its filing in February, and the lender has been troubled by a group of investors who aren’t happy with management.
Moreover, Circle has Christian Lee on its staff. Lee has been named in an action by the Federal Deposit Insurance Corporation as one of nine former employees of United Commercial Bank who allegedly violated federal banking laws. Lee and the rest of the former UCB employees face bans from the banking industry.
At this writing, Lee is still with Circle Bank, which backs him, saying the problems alleged by the FDIC didn’t take place at Circle and that the bank doesn’t comment on legal problems as a matter of policy.
UCB failed in 2009 under the weight of too many bad commercial real estate loans.
Back to the mailbag
Dear Santa,
Hi, Marin County here. We’re just wondering if there’s any way you could sit down with Catherine Munson and explain to her that, while we think the world of her and love what she’s done with McInnis Park and the golf course, there’s no way we’re rewriting the deal.
Hi, Marin County here. We’re just wondering if there’s any way you could sit down with Catherine Munson and explain to her that, while we think the world of her and love what she’s done with McInnis Park and the golf course, there’s no way we’re rewriting the deal.
The fact that we actually made a good deal when we signed up years ago isn’t our fault. Sure, we have a reputation for not being the sharpest folks at the negotiating table. But we’re not in any sort of a position to bail her investors out. We’re a government and pretty low on the food chain as the feds and the state try to keep their heads above water.
So to revisit, just because we made birdie on this deal doesn’t mean we’re signing a scorecard for a double bogey. If you could sit her down and explain, well, that would be a really nice gift.
Happy holidays,
Essentially, Munson wants Marin to eat about half a million in back rent, forgo rent for two years and then cut the rent in half for the remainder of the lease, based on the fact that the economy has gone south and the facility has run in the red since 2003. And one account had Munson dipping into her own pocket last year to the tune of $438,000 to keep the golf course going.
But the thing is, Marin owns the land and it isn’t in a financial position to just blow off revenues.
One more letter
Hey Big Man,
This is Point Reyes National Seashore and we have a simple holiday wish. Please make Kevin Lunny and Drakes Bay Oyster Company go away! We’re tired of the fight to dump Drakes and we’re running out of tactics. If you could maybe sit him down and give him a large sack of cash to toss in the towel, that would be amazing.
This is Point Reyes National Seashore and we have a simple holiday wish. Please make Kevin Lunny and Drakes Bay Oyster Company go away! We’re tired of the fight to dump Drakes and we’re running out of tactics. If you could maybe sit him down and give him a large sack of cash to toss in the towel, that would be amazing.
Merry Christmas,
The saga of National Parks Service (NPS) trying to move Drakes Bay out, and Lunny and Drakes Bay hanging in there like a junkyard dog, is one for the ages. The latest twist has the California Coastal Commission asking the oyster farm to respond to environmental complaints from local and vocal critics.
Lunny’s lease to farm oysters is up next year and he’s asked NPS to renew it. NPS wants the farm out and the waters returned to a more natural state. The park service has played fast and loose with scientific findings over the years, and Lunny counts friends in high places, such as Senator Dianne Feinstein, who backs the farm.
Bill’s holiday wish: On a serious note, thanks for reading me, and may the holidays bring you joy, peace and love. And may the New Year bring your company success, profits and new business.
