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Breakingviews: Containing IPO hype

Wednesday, Oct 02, 2013 - 03:20

Oct. 2 - Jeffrey Goldfarb and Breakingviews editors discuss the Container Store's over-enthusiastic IPO prospectus, which references a ''yummy'' culture, dancing customers and ''conscious capitalism.''

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In this sizzling IPO market and to really hard to break through. Hot topics like cloud computing Empire State Building. Especially when you're selling shoe organizers. The Container Store filed for an IPO in the would expect pretty boring reading but it turns out they're not just filling containers are selling a lifestyle that are unreal -- -- site and they think there sounds yummy. An area. It's it's probably the most ridiculous perspectives that are written in a long time they they the company goes on here. You know to selling box OK and he invited boxes and other places for a lot cheaper. And so they -- makes the whole point of saying you know Kate. It's all about -- please meet me you love her employees and they and they do such a great job and and they make people so excited to fire boxes that they -- there are customers going to open their closets and do dance of joy every week and that's like Gaza and it might really hear from -- Groupon. It's -- it's probably the usual kind of message from -- profit trees silicon -- stuff that -- these guys have. Some profit some profits and army to talk about -- throats that it's it's a boring retail story unless -- jazz it up. -- these other things in the C is left in the prospectus the title tilts at this -- felt. -- yummy in order yet. About a proposal loses -- I mean have milk Friedman Muslims would slow -- -- -- of course companies are only run for -- -- -- and he's saying no that's wrong actually you know. He's saying well actually we kicker -- -- our suppliers they if they expired lifting it it's it's great for us. Our employees -- or quit their number one cousin that our players are so happy and the unique you know excellent tells people. But the nature you know OK but of course and that the shareholders seem to be. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You know what's happening is all proceeds of the companies to pay dividends to the back is living green -- honest and management hood stock. And and if that extra proceeds that's going to be used to it and that which ultimately put it it's sort of like the worst form of capital red -- You know -- -- -- -- paying down debt which also isn't particularly good idea and normally likes proceeds going to invest in the company's commitment if you if you take company. Private investment actually happen immediately inject a lot to it this company and now they're -- commitments that doesn't mean it's a business where wise. And they're off the cashing out I mean that's not exactly. Right so ultimately is this what you mean -- in this kind of market I can't figure out like what this if this is his way is the culture of the company here is this like -- -- -- sales -- and certainly tries it. Culture of the company as a claimant meant that they keep employees a lot longer and if that's treason may be about a business doing them some of them all. Boring run of the mill mainstream retailers but. You know in the end this -- says that selling boxes so little it's that it's it's a tough sell to make it more exciting than -- -- -- -- we will leave it there for now we'll be back with more breaking news tomorrow.

Breakingviews: Containing IPO hype

Wednesday, Oct 02, 2013 - 03:20

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