Rite Aid Accounting Scandal Introduction and History of the company: Rite Aid is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Today, Rite Aid is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid reported total sales of USD $24.3 billion in fiscal year 2008.
That spark was Long-Term Capital Management. Another book routinely ranked in the top 10 Wall Street reads, Roger Lowenstein’s “When Genius Failed” tells the story of that famous quant fund headed by John Meriwether of Salomon Brothers and led by head traders Larry Hillibrand and Victor Haghani. If you invested $1 in LTCM at its founding in March 1994 and cashed out in April 1998, you would have received $4.08 before fees. If you waited until October of that year, you would have gotten about $.30. If you’re looking for fun tales of late-90’s Wall Street ballertude, you’ll probably be disappointed.
“We went over our overdraft limit and we did not hit revenue targets,” Ramsay said. The bank sent in KPMG to go over GRH’s books. A separate investigation by HM Revenue & Customs found that the company owed £7.2m in taxes. Ramsay concedes that his ego got the better of him and the company expanded too far, too fast, opening 10 restaurants in 10 months last year, many of them overseas: “Tenacity and
Overview The lawsuit between Solo Cup Company (“Solo”) and Trigen-Cinergy Solutions (“Trigen”) arose out of an Energy Services Agreement and Equipment Lease that Solo entered into with Trigen to construct an 11.2-megawatt electricity co-generation plant at the Owings Mills facility. Solo was under the impression that by entering into this agreement, they would save at least $820,000 in energy costs annually, which was to be prepaid by Trigen and eventually paid back by Solo over 20 years. After Solo did analyses on the project, they discovered they would actually be losing money in the first year of the contract, and took action to sever the contract. Arbitration then took place to award damages to the rightful party. After extensive review of the relevant facts in this dispute, it has come to my attention that the loss contingency is incorrectly booked for Solo Cup Company.
Next instead of promoting from within, they searched for new blood and hired former Barney’s CEO Allen Questrom. Penney went on to sell one it’s direct marketing unit to raise capital to reduce debt. They restructured the company to focus on its struggling department stores, cutting employees and closing down many stores. By September 29, 2003, the culmination of CalPERS active investment in Penney, JC Penney seemed to right the ship and was able to streamline operations to be more efficient and profitable. Chronology of Events 2/22/00: CalPERS identifies 10 underperforming companies that will serve as their primary focus for corporate governance activism for the 2000 proxy season.
TRX represents a smaller lesser known company that faces significant challenges in becoming known and attractive to investors. The case looks at the company from its incorporation in 1999 through the IPO decision in 2005. In addition to raising capital the case includes consideration of another motivation for going public. When the company was incorporated in 1999 they had attempted to go public but this attempt failed because of the dot com collapse. Because of the failed IPO TRX’s president and CEO Trip Davis found strategic investors to raise $20 million in a note convertible into equity at $11 per share.
Possibility of fund’s success causing strains in the relationship with its consulting firm’s parent. - NewPort Partners (buyout firm) : One of the oldest buyout funds. Acquired an enviable track record. Past 3 years 2 new initiatives – technology investment program and an internationalization effort - had gone badly astray.Most recent fundraising effort has fallen well below its initial target. - Search Fund : Initiative by former roommate who had identified few wealthy individuals ready to support search for undervalued company.
In part, the article stated: Macquarie Bank executive director Simon Hannes learnt of the value the bank had placed on TNT shares three months before the transport giant was subject to a takeover bid by Dutch company KPN, a jury heard yesterday. The Crown has alleged that Mr Hannes, using the alias Mark Booth, used that confidential information to make a $2 million profit trading in TNT options at the time of the October 1996 takeover offer. Macquarie was advising TNT on the bid and the Downing Centre District Court jury has previously heard Mr Hannes claimed to have had only a general knowledge of a possible transaction involving TNT. Mr Hannes, 39, has pleaded not guilty to one charge of inside trading and two of structuring bank withdrawals to avoid reporting requirement. a) Which of the theoretical perspectives of regulation reviewed in this chapter might best explain the existence of laws that prohibit insider trading?
PepsiCo Synopsis Pepsi-cola is the invention of Caleb Bradham, a pharmacist, in 1898. He created the drink out of carbonated water, a unique mixture of Kola nut extract, vanilla, and rare oils ("Andy's Pepsiholic Haven", 2002).In December 1902, Bradham launched the Pepsi-Cola from the back room of his pharmacy. By 1910, there were 250 franchises in 24 states. The company ran 17 years successfully before encountering price fluctuations in sugar prices during World War I. After sugar prices fell, he was left with a large inventory of overprices sugar, bankrupting the company in 1923.