Originally Posted by
winniewingyee
To the best of my knowledge, it's not true that we ordered hoards of inventory before closing. Most of HQ were not aware of the closing until the day of the announcement (1/15 Thu), and only a few senior leaders were told the night before (1/14 Wed). I actually heard on 680 News on my way to work 5 mins away from the office and was thinking "WTF?!"
I wasn't in merchandising but worked closely with them and with our vendors and service providers, both imports and domestically and from the US. From what I know we didn't order much more that we should have, and certainly not in anticipation of us "closing."
What we did do was to try and delay receiving certain spring inventory until February instead of January knowing that there won't be any meaningful sales until later. The way we ordered before we had way too much buffer time built in. So we would have been holding way too much inventory especially for fiscal year end.
Having worked in merchandising in other retailers, I can say it is not uncommon to "move/shift" inventory for year end (or even month end) to make inventory numbers look better. But the result would have been that all of a sudden you end up seeing a "peak" during the same time that didn't exist the year before. But looking at the big picture, it may very well have been merely a "shift" in where the "peak" hit.
And then there was the fact that we were out of stock on lots of stuffs and us making conscious efforts to get better at in stock... So does that mean that we were ordering more that we may have the year before? Probably I would say? Logical right?
I don't know if that would have entirely answered the question... but to me it is at least partially a factor in the entire picture.
Sorry if I have sounded defensive... but as much as I am upset about the decision to close (and disagree with the "math" behind it to say that we wouldn't have been profitable till 2021,) I truly don't think my colleague made intentional decisions to gain from our suppliers in unethical ways... we have made lots of inventory related mistakes and so there were lots of things that we were fixing...