Posted on 03/20/2014 4:12:04 AM PDT by Red in Blue PA
Hedge fund manager Marc Lasry says his firm, Avenue Capital, lost more than $200 million in a bad bet on now bankrupt sandwich shop chain Quiznos because the former owners deceived them about the health of the company, according to the New York Post.
(Excerpt) Read more at cnbc.com ...
You would think this was his first rodeo. Think the concept of due diligence was taught at his business school?
There should be no “experts” who are taken by Enron, Lehman Brothers etc etc.
If they are doing their job, they can never get taken.
When he comes up empty, he will ax his pal, obummer for tax payer money.
Shouldn’t that be “Ex-hedge fund honcho” or “former hedge fund honcho”.
What about doing some due diligence? You know, like eating at a few Quiznos across the country at lunch time, look around, chat with staff, chat with customers? Peter Lynch would do it.
Isn’t it kind of their job to not be deceived? I mean that is what makes them experts.
mmm, mm, mm, mm, malfeasance
Hey Marc, it doesn’t’ take a Harvard MBA to figure out that and $8/sandwich with 3,000 calories was going to be hurt in a down economy.
Quizno’s lied to everyone, just go google the company, seriously they lied to franchisees... they bilked them for more money than they knew they could ever actually make selling sammiches. The whole company has been a sham, I believe less than 1 out of 3 restaurants of theirs ever turned a profit. It was a ponzi scheme, and its been common knowledge for years. If they were putting money into this company at any time in the last decade or so, they have no one but themselves to blame for not doing their due diligence.
I can agree with that. I think the problem might be most have string of letters at the end of their name and nothing else.
It is amazing how many so-called financial experts are simply lazy and push nonsense they call research.
Appears to me most of the so called experts are just selling what pays the highest commission. Look at insurance men, they will sell you a life insurance policy without disclosing that it only pays if you have it in force for 20 years, are struck by lightning on the 7th hole of a certain out of state golf course while holding an eight iron.
You are absolutely correct. Their VP of Franchising used to live across the street from me and he could be seen pacing back and forth in front of his house at all hours of the night talking on his cell phone. After he quit, I asked him about it and he said he grew tired of franchisees calling him at night threatening his life for taking their life savings. The principals at Quizno’s are scum. They negotiated ridiculous leases for their owners and when the leases killed the operator, they bought the equipment back at pennies on the dollar, renegotiated the lease, and made them corporate owned stores. This is a good lesson for anyone wanting to buy a franchise.
Unless outright fraud was involved, the only thing left to say is “due diligence.”
That’s actually a funny thing. I’ve seen some very small and very large deals. The due diligence happens nearly the same in each. If the buyer is well-funded and/or egotistical it is near zero. I suspect that to be the case here.
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