Tag Archives: sears canada

Context Counts

The answer to the question, “Is this a successful outcome?” can be dependent on your perspective.  Although the result can be agreed to objectively, that is everyone accepts what happened, whether it was positive (sucessful) or negative is very much contextual.

For Example

The owners of the majority of shares in a large company develop a plan of subsidary asset sales and excess cash divestiture through stock repurchase and dividend payouts.

The result is beneficial to exisitng shareholders of the parent company.  The value of the subsidiary drops but the holders of equity in the parent company gain (dividends, parent company stock price increases).

Ultimately the subsidiary may go bankrupt having a very negative impact on its employees, suppliers and customer base ( they need to go elsewhere if they can even find an alternative)

In this case, the shareholders deem the result a success, the other shareholders not so much.  The outcome, bankruptcy of a viable enterprise, is not disputed, whether it was a good or bad outcome is.

In case you did not recognize it, this  story is one way of describing the recent Sears Canada bankrupty.  My telling of the tale is from a cynical perspective, but does have some validity nether the less.

That is the facts, allbeit interpreted liberally, are provable facts.  So clearly your place in the story, rich owner profiting from others loss or poor employyee without severance really speaks to how the outcome is viewed.