Bottom Line
The team is focused on consolidating operations into a key Hollywood facility (Stage 5) to maximize commercial revenue before a perceived market decline, while pushing back on unnecessary investments in other locations. They are also demanding better asset valuation data from a counterparty to finalize a deal.
Key Takeaways
Facility Strategy:: The plan is to consolidate commercial operations into Stage 5 in Hollywood, dropping Avon and one-day business there, to capture all remaining revenue in a shrinking market.
Valuation Impasse:: The team needs either carrying values or a detailed asset list from the other party to proceed with their valuation methodology for a potential deal.
Contingency Planning:: Securing a contingency plan in West Hollywood is considered crucial for the 3-5 year plan, especially regarding the future of the Kuanga/Coenga location.
Investment Philosophy:: The team is adamantly against making new capital investments in facilities they plan to exit, rejecting requests for upgrades as misaligned with their strategy.
Decisions Made
• Discuss the future of cooling/pro supplies on Thursday — decided by Speaker A
• Respond to valuation data request by insisting on asset values or a fleet list — decided by Speaker A & B
• Provide high-level ownership info (like Bearcat table) but not full cap table — decided by Speaker A & B
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