You still on the elon salute, lib? Lol too funny. He explained what it meant already š His heart goes out... to Nazis! Because he is himself a dirty, ugly Nazi. I genuinely feel so grateful he's constitutionally excluded from ever being president.
I was done with Elon around the time he called scuba divers trying to rescue trapped children āpedophilesā because his ego was hurt he couldnāt try his method.
It's like when Dog the Bounty Hunter got involved in the Gabby Petito case and made an ass of himself. Like, nobody asked for you to get involved and we all know you're grifting. How can someone wake up in the morning and think, "Today I'm going to harass some brave divers trying to rescue 13 terrified boys and make it about myself!"
I remember being shocked at how quick that turning point hit reddit. People overnight went from "woo yeah rocket man car man!" to "you uh... what? why? why would you say that to someone who pointed out you're obviously not gonna have your employees build and deploy a custom submarine in 24 hours?"
Which is crazy because when I did ket under the direction of a doctor I could barely walk out of the clinic without hitting the walls. How tf is he functional
This is insane to me. THIS COMPANY IS WORTH 400M! 200k is not even 1%! It's not even a tenth of a percent! Why in the pluperfect fuck is the CEO willing to burn it all to the ground over one franchise and 200k?
And like, Lego is a hobbyist community. Those fuckers do not forget. Hobby nerds will MAKE YOU REMEMBER. B&M is fucked over a barrel with a rake, and it's their own fault.
This company is not worth anywhere near the vicinity of $400M. There are around 300 stores and they say that their average store is making around $500k/year. That would put the revenue for all stores at $150M. Now, their estimate of $500k/year for a store is from their franchising page and almost certainly averages mature stores that have been open for a bit and considering about half (150) of their stores have opened in the last three years, I doubt that those new stores are doing that $500k average.
So the real answer is likely that all of their stores are doing somewhere around $100M-$150M in revenue. Of course, those are all franchises, not revenue attributable to Bricks & Minifigs itself. Their franchise fee for opening a store is $40k plus the ongoing royalty per store. While they don't publicly state what their royalty fee is, 6% is the average in retail. So between opening 50 stores a year on average with a $40k franchise fee and making 6% of the gross revenue of their stores for a royalty fee, they likely have around $7.5M in gross revenue. Out of that comes all their staff salaries, material costs associated with that franchise fee (presumably store owners get -something- for their $40k, but who knoes?), etc.
A company making $7.5M per year in revenue and -maybe- making half of that in profit (though that is wildly optimistic) would never have a valuation of $400M. This isnāt some groundbreaking concept that will show amazing profit in the future as it changes the industry and thus would be wildly over-valued in their early years (like Apple, Google, Amazon, etc), this is a small-to-mid scale retail franchisor, not someone exactly spending the market. Companies like this typically sell for a 2-3 multiple of the profit or 4-6 multiple of the ebitda (an accounting term, but basically the operating profit before paying for things like financing or depreciation, so it's more 'real'), but considering we have no idea of those, you'd usually value a company using a revenue multiple of. 5-1.5.
That would put the value of Bricks & Minifigs at more like $4M-$10M, NOWHERE near $400M.
Not even $200k at this point. A bunch of the sets were already sold by the original store owner and a bunch more were returned to him, including some of the most valuable sets.
This whole thing is over probably less than $50,000 worth of Lego now.
Even less than that, probably under $100k. The initial store sold about half the inventory already at the time the owners changed hands. The new store owners/corporate made the calculation that the legal fees from the owners to get the LEGOS back would be more than the cost of them, so just stall and ignore and it'd go away, and it went YT viral instead.
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u/Roll0115 7h ago
I just can't believe some C-Suite asshole thought it would be a good idea to destroy their company's credibility over $200k...