FEI Weekly

June 15, 2020

The curious case of Hertz's bankruptcy filing and stop worrying about the length of your resume.

The Next Major Retailer Facing Bankruptcy

CNN Business

Tailored Brands, which owns the Men's Wearhouse, Jos. A. Bank and K&G brands, could be the next major American retailer to file for bankruptcy. The company disclosed it is at risk of bankruptcy or even shutting down operations because of the Covid-19 crisis in a filing Wednesday evening. Tailored Brands had $201 million in unrestricted cash on hand as of June 5, but that was primarily because it drew down $310 million on existing credit lines during the first quarter. That left it with only $89 million of borrowing available under those lines.

An Argument for Prudent Accounting

Harvard Business Review

Prudent accounting balances the forces that drive a business to be efficient and resilient by helping a company stay asset light and forcing it to write off dud projects as their losses become apparent, even in otherwise good times. Such a company is thus less likely to throw good money after bad, lowering waste in the company and in the economy. And, when bad times hit, the company is less prone to be carrying unwanted costs, a huge relief for everyone, including the taxpayer.

BP to Incur $17.5B Writedown

WSJ - Paywall

BP is writing down up to $17.5 billion of its assets and might leave some of its oil and gas in the ground because of lower energy prices and weakened demand amid the global crisis caused by the novel coronavirus. The virus will accelerate the world’s shift to a lower carbon economy, BP said, with governments directing some of their stimulus packages to climate-friendly initiatives. Last week, BP said it was cutting nearly 10,000 jobs, or 14% of its workforce, as it seeks to strengthen its finances. 

The Curious Case of Hertz's Bankruptcy Filing

Yahoo News

Coronavirus-hit car rental company Hertz was granted permission Friday to sell $1 billion in shares, an extraordinary move after it declared bankruptcy in the United States and Canada. Traditionally, shares of bankrupt companies lose value with debt repayment taking precedence. Experts say in Hertz's case, however, the price has been affected by the abundance of cheap money flooding the economy after the US Federal Reserve turned on the tap to combat the economic impact of the coronavirus pandemic.

Stop Worrying About the Length of Your Resume

Glassdoor

Too often professionals shortchange themselves by being overly sensitive about the length of their resume. The number of pages has no impact on employers looking to fill a position. The key is in making certain the information is clear, concise, and lines up with the needs of the employer.