Beginning of the end ...

Well well well, looks like one of my worst fears that I called out a week ago has come true.

Paul Warren is right. He didn't do any deals after all. That's because this business stinks so bad that no one wants to have anything to do with it.

The CEO called out $30m target for the business to become profitable in The Australian article "Crean pins $30m as the magic cashflow number". Turns out he could hardly manage two thirds of that.

So as per last week's announcement they now want to focus on gross margins not revenue? What happened to the "we need to scale to be profitable" argument?

So now they want to cut the business to the bone, by trying to sack the poor guy who's left to man the whole warehouse, and 1300 phone number is unattended and off the hook?

Do you think existing customers would stick around with the poor customer service getting worse with cost cutting? They just take their business elsewhere, simple.

What about the CEO earning ~$250K a year, or roughly 10% of today's market cap? Is he part of the cost reduction initiative? Tried calling this guy for a please explain and looks like he's gone into hiding, call straight to voicemail.

~$800k left in the bank and more cash loss on the way, no to mention the impending asset write-down that makes up the $2.6m full year loss.

Any mention of what the up-front compensation would cost to get out of the existing warehouse lease? Nop.

TPW, GEG and other retailers are more than happy to keep watching SHP self-destruct, so they can then pick up extra market share for NOTHING. Why bother spending money on a takeover?

Directors bought their shares between 1.c - 1.7c a piece. Do you think that they would now oversee a CR at 0.3c? Looks like these guys are just gonna ride this thing and squeeze salaries and fees out until it's dry.

Administrators and lawyers are already on their way. Only regret is that we gave the directors and management way too much credit and now this thing has blown up and ending in tears.