[BobNJ1960]

Originally Posted by JayCT

Well you were only partially correct. Subway has leased some office space in Doval, Florida but the company says it is unequivocally NOT leaving Milford. None of the articles I have seen on this lease indicate the amount of space leased but I’m sure if it was significant, they would have said so. Most likely it is a smaller space to accommodate their new CEO when he is in Miami rather than a relocation of a significant number of jobs. Jay

https://www.newhavenbiz.com/article/...space-in-miami

It must be significant to accommodate the substantial number of jobs moving in this round, and as others mentioned, their Miami office complex has substantial additional space available. Add in, Subway acquired more Fl office space as another indicated in 2020 after this initial move.

The move this week is ominous. I doubt they are privately held too much longer.

I also do not trust any P/R statements they make, as they handled the 2020 layoffs in a dismissive manner, so I view them as a callous organization.

[JayCT]

Green pest control company Enko has moved its headquarters from greater Boston to Mystic. Nice addition to our state. Jay

https://www.hartfordbusiness.com/art...ston-to-mystic

[Stepfordct]

Yum and Coke, over the years tried to buy them out. It was an ego thing for Fred. Whatever crazy offer made was never enough.
Something to realize is the crazy profit made. It was 90+ % profit.
No company stores. All the field people were paid out of shared royalties that were paid to Development agents.
Example conventions. All the vendors and franchisees paid for it.
So it's a huge cash machine.
Fred could have bought Dunkin for around 2b 15 years ago and passed. Slam dunk. No, if not on sale he couldn't part with the$
Buffet recently tried to buy Subway too.

[BobNJ1960]

Originally Posted by Stepfordct

Yum and Coke, over the years tried to buy them out. It was an ego thing for Fred. Whatever crazy offer made was never enough.
Something to realize is the crazy profit made. It was 90+ % profit.
No company stores. All the field people were paid out of shared royalties that were paid to Development agents.
Example conventions. All the vendors and franchisees paid for it.
So it's a huge cash machine.
Fred could have bought Dunkin for around 2b 15 years ago and passed. Slam dunk. No if not on sale he couldn't part with the$
Buffet recently tried to buy too.

Buffet is a true investor. Its unfortunate it did not occur.

With them not doing well (trend lines down), I'd expect a Vulture Capital buyer or buyers to acquire them in the near future.

[JayCT]

Originally Posted by BobNJ1960

It must be significant to accommodate the substantial number of jobs moving in this round, and as others mentioned, their Miami office complex has substantial additional space available.

The move this week is ominous. I doubt they are privately held too much longer.

I also do not trust any P/R statements they make, as they handled the 2020 layoffs in a dismissive manner, so I view them as a callous organization.

Oh god, please. If the lease was of a significant size, it would have been well touted. It is not uncommon for office complexes to have vacant space for lease. That does not mean the companies leasing a small space there will be moving everything at some point. The sky is not falling. The end of the world is not near. We will see what happens at Subway but right now I’m not worried. Jay

[Stepfordct]

Originally Posted by BobNJ1960

Buffet is a true investor. Its unfortunate it did not occur.

With them not doing well (trend lines down), I'd expect a Vulture Capital buyer or buyers to acquire them in the near future.

It's possible it might stay here longer as CV and the restaurant industry at large is a gamble. Any buyer wants a CV discount.
The families don't need the money certainly. The victims are the store owners who have had to deal with massive incompetence for wait too long. Also while the company reputation in the US has been suffering, the same can't be said internationally.
Buick is actually cool in China!

Forgot to mention leasing is temporarily being moved to Detroit.
Lastly for the doubters no company admits to selling until the check is cashed.

[BobNJ1960]

Originally Posted by JayCT

Oh god, please. If the lease was of a significant size, it would have been well touted. It is not uncommon for office complexes to have vacant space for lease. That does not mean the companies leasing a small space there will be moving everything at some point. The sky is not falling. The end of the world is not near. We will see what happens at Subway but right now I’m not worried. Jay

I am. Just looking at the last 12 months there, it's been a horror show. Multiple rounds of layoffs, 2 of 3 made the news in 2020 (I knew a 3rd happened via internal sources), now one in 2021, a higher Fl headcount, and Ct , after this will be at roughly half its 1/1/2020 headcount once this round comes to fruition.

I am pleased several folks I knew there got out the correct way, via new jobs, but I also know layoff 2020 victims who did not.

I hope the remaining staff either find new jobs or get closure via a sale of the company. It has been horribly run for too many years. Anyone there not actively pursuing an exit strategy is an idiot.

[BobNJ1960]

Originally Posted by Stepfordct

It's possible it might stay here longer as CV and the restaurant industry at large is a gamble. Any buyer wants a CV discount.
The families don't need the money certainly. The victims are the store owners who have had to deal with massive incompetence for wait too long. Also while the company reputation in the US has been suffering, the same can't be said internationally.
Buick is actually cool in China!

Forgot to mention leasing is temporarily being moved to Detroit.
Lastly for the doubters no company admits to selling until the check is cashed.

Detroit? That's a curveball move.

Btw, I assume they gave up 2nd local building they had in region (leased space). It used to house accounting , primarily.

I do understand covid delayed many corporate sales in anything public-facing.

[robr2]

Originally Posted by BobNJ1960

Eye-opening post. I copied most telling portions.

Bain would be tragic. Their history, like most of Vulture Capital, is hardly good for the companies acquired. (Not that BK was in good shape earlier) Which is why I hardly take pride in FFC having so many P/E firms.

I would hope someone like YUM buys them, instead. I did know Subway corp hq is toxic generally, and were always cheap!

I do realize their days in Milford are numbered.

YUM played in the sub sandwich sandbox for a little while with D'Angelos. That lasted four years.

If YUM were to buy them, there would be a major cost involved with right sizing the number of stores. Further, HQ would most likely move to Louisville, KY where the other YUM brands are.

[JayCT]

Originally Posted by Stepfordct

Yum and Coke, over the years tried to buy them out. It was an ego thing for Fred. Whatever crazy offer made was never enough.
Something to realize is the crazy profit made. It was 90+ % profit.
No company stores. All the field people were paid out of shared royalties that were paid to Development agents.
Example conventions. All the vendors and franchisees paid for it.
So it's a huge cash machine.
Fred could have bought Dunkin for around 2b 15 years ago and passed. Slam dunk. No, if not on sale he couldn't part with the$
Buffet recently tried to buy Subway too.

People keep talking about Fred Deluca but keep forgetting the other owner of Subway, Dr. Peter Buck. Buck is who financed Deluca’s first restaurant in Bridgeport in 1965 and he has been an integral but less public part of the company since. A lot of what will happen depends on him and how he wants the company to be run. Jay