Harbor Freight lawsuit

[Citydude]

There is a large population out there that look at what we have and think we don't need anymore money either. Think about it....

 

[Diggin It]

But today, I'll be hitting three locally owned and operated stores that are not chains, though they are franchises.

Well, that was load of fun.

Three hardware stores plus one Big Box, and I still don't have what I set out for. Guess that's another thread though.

 

[Oaktree]

The margins that HF makes are astounding. They are not hurting one tiny bit by any of this. They have most certainly not "shot themselves in the foot" in any way. Their business model is spot-on, they're making a ton of profit, and they're expanding across the country, even in times when the rest of the economy is not.

Yeah, they'll be around.

Maybe, maybe not. Just because the CEO is living large doesn't mean the company isn't leveraged to the hilt. Since the company is privately held there's no sure way to know.

I wonder if they're trying to expand too much too fast. Might not be good when the next crash hits.
Personally, I hope they do well. I enjoy visiting their stores. I don't see their ads as being in any way deceptive.

 

[Slowpoke Slim]

Think margins in the 75-80% range. Even when they have a 50% off sale, they're still doing just fine. People love predicting Doom & Gloom. It sells print I guess. HF is not hurting in any way that you can think to measure them. And yes, I've seen the numbers myself. I was being courted for a while by HF to open up a store and run it for them in a new area. Had lengthy discussions and several meetings with district level HF managers. So, yes I've seen the numbers. Even down to their store manager level, they pay *very* well, much higher than you'd expect for a similar sized retail chain store.

Biggest reasons I walked away were I didn't want to work that many hours again (retail management), and I just didn't want the employee management hassles that come with such a position anymore. And yes, I used to be a manager for a "big box" store years ago. So I have the experience of running a larger operation than an HF store.

 

[California]

Just because the CEO is living large doesn't mean the company isn't leveraged to the hilt. Since the company is privately held there's no sure way to know.

A few years ago I forecasted the HF growth we are seeing today, and went to see how to invest in their stock. No way. Smidt is sole owner.

But I saw speculation that his heavy borrowing against the present and future valuation of the company to pay out cash to him personally had enriched him immensely while leaving the corporation running on slim cash reserves - ie the Bain Capital method that enriched Romney.

I don't think HF will fail, I think they will grow into what Craftsman once was. But when Smidt eventually sells his interest, or dies, it will become obvious that he 'harvested' (Romney's term) all the equity out of the corporation into his personal fortune.

 

[California]

Off-topic for this thread but there was a prior major lawsuit at HF.

Smidt's dad was the founder, back in their flea market and mimeographed mailings era, and HF was run by dad and his buddies. Smidt took over and threw out all the old codgers, dad included. They sued, and lost.

Smidt is no stranger to lawsuits.

 

[airbiscuit]

His dad put him in an orphanage when he was 9! Interesting bio on Wikipedia.

Eric Smidt - Wikipedia

 

[Diggin It]

Mine finally showed up in the mail today ... $350 and change.

 

[California]

His dad put him in an orphanage when he was 9! Interesting bio on Wikipedia.

Eric Smidt - Wikipedia

Be kind to your kids. Eventually they will be the ones choosing your rest home.

 

[kenmac]

Mine finally showed up in the mail today ... $350 and change.

what showed up today for $350.00 ?