AM I NEXT? NO LOVE AT JULEP

Online cosmetics and personal care products marketer Seattle,Washington-based Julep has hit the skids and will be laying off 102 employees as they move their headquarters to New York City, New York and close their local stores.

This is a classic entrepreneurial tale where the story sells the concept, attracts significant venture capital, and then fails to scale or the parent company simply runs out of cash.

Julep, founded in 2007 by former Starbucks and Boston Consulting Group executive Jane Park, hit a rough spot when it was accused of using deceptive ‘negative option’ marketing tactics in their subscription box sales of beauty and personal care items and was ordered to pay a hefty fine.

The company was acquired shortly after the settlement by the New York City-based Glansaol in December 2016 with the intent to supplement the company’s portfolio of synergistic beauty companies. Glansaol (meaning pure life’ in Irish) was founded by former Revlon President and CEO Alan Ennis, an Irishman, and financed by the private equity firm Warburg Pincus to market beauty and personal care products and has filed for Chapter 11 pending the sale of certain assets to AS Beauty including beauty brands like Julep, Laura Geller,and Clark’s Botanicals.

According to a statement by Glansaol CEO Nancy Bernardini, “The board and management team have thoroughly assessed all of our strategic options and are confident that the proposed sale process represents the best path forward for the company. We are pleased to have entered into an asset sale agreement with AS Beauty and are excited for the company’s future.”

Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?

AM I NEXT? IS THE HANDWRITING ON THE WALL AT NESTLE SKIN HEALTH

Following a comprehensive strategic review which is scheduled to be completed in mid-2019, Zurich, Switzerland-based Nestle has decided to increase the company’s attention on their traditional core products in the foods, drinks, and nutritional health sectors.

It appears that Nestle will be exploring “strategic options” for its Skin Health business which includes the well-known face care products Cetaphil and Proactiv. It is believed that the decision was driven in part by activist hedge fund investor Dan Loeb who runs Third Point and who appeared to have recommended the sale. The division, with sales of approximately $2.8 billion in 2017 could go for an estimated $8+ billion.

The handwriting is clearly on the wall. Employees should be prepared for job cuts as the unit is prepared for sale and then additional cuts after any acquisition or merger as duplicative functions are eliminated and the firm is integrated into a new business framework.

Are you wondering, Am I Next?

AM I NEXT? NO LOVE AT JOHNSON CONTROLS (02/19/21)

Am I Next? Johnson Controls; Layoffs, Asset Sale

FEBRUARY 19, 2021 — PLANT CLOSURE AND 200 LAYOFFS IN CARROLLTON, TEXAS

The company has announced that it will be closing its Ruskin Rooftop Systems HVAC plant located in Carrollton, Texas by the end of September 2021. The closure will affect 200 employees.

According to a company spokesperson, “We appreciate the great contributions our employees have made in serving many customers over the years. However, recent business conditions have changed production demand for Carrollton’s products, resulting in the decision to consolidate its operations and maximize our current equipment capacity elsewhere, including other Ruskin facilities.”

AUGUST 21, 2018 — Original post…

Johnson Controls, formerly headquartered in Glendale, Wisconsin, and now headquartered in Cork, Ireland, has noted that its restructuring plans for 2016-2018 were based on a reduction-in-force of 9,200 employees, with 4,300 having already been separated from the company as of June 30, 2018.

According to its quarterly report for the period ending June 30, 2018…

“The Company's fiscal 2018, 2017 and 2016 restructuring plans included workforce reductions of approximately 9,200 employees ( 7,300 for the Building Technologies & Solutions business, 1,700 for Corporate and 200 for Power Solutions). Restructuring charges associated with employee severance and termination benefits are paid over the severance period granted to each employee or on a lump sum basis in accordance with individual severance agreements.
As of June 30, 2018, approximately 4,300 of the employees have been separated from the Company pursuant to the restructuring plans. In addition, the restructuring plans included eleven plant closures in the Building Technologies & Solutions business. As of June 30, 2018, six of the eleven plants have been closed.”

“Company management closely monitors its overall cost structure and continually analyzes each of its businesses for opportunities to consolidate current operations, improve operating efficiencies and locate facilities in close proximity to customers. This ongoing analysis includes a review of its manufacturing, engineering and purchasing operations, as well as the overall global footprint for all its businesses.”

Bloomberg has reported that Johnson Controls will be selling its Power Solutions business to a private equity firm for as much as $12 billion dollars. All four of the finalist bidders have experience with cost containment, asset divestiture, and employee layoffs. 

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?