Another company gutted after a takeover

[n2doc]

A century-old merchant's decline
Harry & David promises 'happiness delivered' with its gourmet foods. But the mood's not so happy inside the firm, where cost-cutting since a private equity firm took over belies a folksy public face.


By Nathaniel Popper, Los Angeles Times
September 19, 2010


The holiday catalogs are already being mailed out by Harry & David, offering the century-old merchant's trademark luxury gifts including gourmet fruit from Oregon's Rogue River Valley, with a promise of "happiness delivered."

The picture is much less cheerful at the company's headquarters in Medford, Ore., where corporate cost-cutting and absentee management belie the firm's public face as a folksy, agrarian outfit with roots as solid as those growing under the pear trees in Harry & David's orchards.

Since New York-based private equity investors bought Harry & David six years ago, the company has sliced its workforce by a third and cut back on raises and benefits.

The turmoil worsened this year when the company's longtime chief executive, widely viewed as a pillar of the local community, was fired and replaced by a hotel executive who had left his previous high-profile job under a cloud.

more

http://www.latimes.com/business/la-fi-harry-david-20100919,0,4717342.story

Another company run into the ground by so-called capitalist geniuses

[lunatica]

1. A sad story repeated all over the country.

100 years ago there was also a huge turmoil when life changed drastically for everyone. The advent of our modern world must have seemed like a steam roller for many. I wonder what the world will look like in a decade or two. Certainly not the way we've been used to seeing it.

[lib2DaBone]

2. Sad story. This is what Hedge Fund Vampires do...

Just like the Blackstone Group that Mr. Obama put in charge of our Social Security Caat Food Commission, these people suck the life out of any living business and then hide the profits in a Cayman Bank account.

It's called "Trickle Down" or "Cut-Throat Capitalism".... and our lawmakers LOVE IT.

[FreakinDJ]

3. Isn't it great our pension savings funds these Cork Soakers

yet we have no say so in what they do with it

[dkf]

4. Irony is a Japanese company treated Americans better than these creeps.

What a disgrace. And why would any private investor put their money with these people. What long term value is created in destroying companies? It is time to shame people out of investing in these vultures.

[fasttense]

5. And their food and service has gotten really crappy.

I use to buy from them regularly, when I had a good job about 8 years ago. So, for a gift, I splurged and order from them.

It was mediocre to bad. First I paid extra for faster delivery. And of course, it arrived 3 days after it was suppose to.

The fruit was ok but I ordered the exact same fruit basket from an unknown company and when it arrived on time, the recipient just could not stop raving about the flavor, size and color of the fruit. She even said it was better than the last fruit basket which was Harry and Davids.

So, it figures. Poor quality is what you always get from a takeover.

PS I had to add that the price I paid for Harry and David was higher than the price I paid for the better quality and on time delivery of the other company.

[Cleanelec]

6. "Another company run into the ground by so-called capitalist geniuses"

Bruce Wasserstein who headed the leveraged buyout, was a longtime supporter of liberal candidates and liberal causes.

[n2doc]

7. Doesn't excuse the damage he did here n/t

[fasttense]

10. Yes, there are plenty of corporate Democrats around, see Ben Nelson..

Just because Wikipedia calls him a liberal though, doesn't make him a liberal.

He's a corporate raider just as much as RepubliCONs are.

[Ian David]

8. I was practically raised on Harry & David. I'd get a package of kiwis mailed to me at summer camp.nt

[MineralMan]

9. After being disappointed by a couple of Harry & David orders,

I made a change. Now, when I want to send a gift of fruit, I choose Minnesota apples. I go to the market and hand select the very best of the excellent crop of apples grown here, choosing several varieties to make up the dozen I'll send. Then, I package them very carefully and overnight them to the recipient, using Express Mail.

The cost is far lower than Harry & David, and I know with absolute certainty that the fruit I'm shipping is the very best that's available and is a product of my own state.

The response is always excellent. The variety gets the biggest praise, since the recipient gets to try several different apples. The money I spend, other than shipping costs, stays in my state and supports the apple growers here. It's a win-win all around.

[Kablooie]

11. Perfectly content to kill the golden goose...

As long as they can dig out a few quick eggs for themselves first.

[EFerrari]

12. My Dad used to send me packages from these people.

"Gracefully surrender the things of youth -- clean air, Taiwan . . ."

[Hannah Bell]

13. they buy companies, loot them, & invest overseas or in offshore accounts.

why do we let these sick fucks rule us?

[Quantess]

14. Harry & David went downhill.

Their "luxury" gifts have gone down in quality.