corporate greed

What the CEO of Wickes said two years ago, and what is happening today…..

The Wickes Dilemma

John Disa former CEO of One Price Clothing Stores, has managed to drive Wickes furniture into chapter 11. This is not a “shocker” since Disa was also the CEO of One Price when they filed for chapter 11. Disa has a less than impeccable record, and yet SUN CAPITAL PARTNERS, INC. decided he should stay on as CEO of Wickes. Now, Sun Capital is a private equity firm that can use Wickes as their “loss” or better yet a tax shelter. Let’s digress and reflect on the year 2006 when Wickes furniture was posting double digit profits. In 2007 Wickes was still opening new stores, targeting different geographic areas. This is a normal business approach. What we want to enlighten you on is this: Bankruptcy is not a decision made over night. Sun Capital knew this was going to happen, and yet there is a great benefit for them to see a chapter 11. Remember the phrase “Umbrella Company”, and “Tax Shelter” think about this for a minute then read on.

Now if you are or were a customer of Wickes who was recently ripped off keep reading so we can make you even more stressed. Bankruptcy courts are abused by corporations all the time. There is a level of protection for businesses that we cannot fathom. John Disa is not alone, his fellow criminal “posse” consists of SVP and COO: Gary M. Mierenfeld, and Director Advertising and Marketing: Nicole Ivey. John does not have the competency to drive businesses into the ground on his own; it takes a team of people to do this. Really you can’t hold the blame at Sun Capital, as they are an investment firm, who look at the best possible return. You have to focus your ire at the actual problem which is not only the top level executive of Wickes, but also the bankruptcy court of Delaware who by the way is protecting Wickes.

As a side note: this latest consumer rip off does not just effect “Cash” customers. Citi financial was offering great promo offers such as “No interest till 2009” remember those ads. Well if you were approved for credit, and bought furniture but had a delivery date after Feb. 1^st 2008 then you are still liable for those charges. We have one reader whose is currently trying to get the charges disputed and reversed. Let’s see if Citi Financial will live up to their “fine print” agreement.

Lets’ finish this up, one question is “why another article on Wickes?” Well we need to expose past profits to inform the reader and customer who was burned by Wickes on failure to deliver a purchased product. This is really no different than John Disa coming up to you and saying “I’ll give you this quarter for your two dimes”, then taking your quarter and keeping his two dimes anyways. John Disa knew they (Wickes) was going to Bankruptcy and yet they kept the stores open to sell furniture with delivery dates promised after Feb. 1^st 2008 which by the way was when Wickes filed for Bankruptcy. The other entity to blame is United States Bankruptcy Court District of Delaware. Why did this court not freeze all assets of the company and the top level executives? The consumer should have then been given a choice for a full refund, or delivery of the furniture. There thousands of people right now filling a claim in the bankruptcy court against Wickes, yet when we spoke to the our source at this court they said “there is a very slim chance that any money will be paid back to the consumer” we were also told that “if too many claims are filed Wickes can change from Chapter 11 to Chapter 7”

Links:

http://www.suncappart.com/images/Barrington_Home_Furnishings_Report_Feb_06.pdf

http://www.deb.uscourts.gov/

www.citifinancial.com