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Reitmans Ord Shs V.RET

Alternate Symbol(s):  RTMNF | RTMAF | V.RET.A

Reitmans (Canada) Limited is a Canada-based specialty apparel retailer for women and men, with retail outlets throughout the country. The principal business activity of the Company is the sale of women’s wear. The Company operates three different brands: Reitmans, Penningtons and RW&CO. The Reitmans banner is a specialty fashion destination. The Reitmans has an online presence and store locations across the country. Penningtons is a destination for plus-size fashion, ranging from sizes 14 to 32. Penningtons operates stores across Canada, as well as an ecommerce site at penningtons.com. RW&CO. operates stores averaging 4,500 square feet in premium locations in shopping malls, as well as on their e-commerce site. Specializing in menswear and womenswear, the brand delivers versatile, well-crafted collections and brand experiences. It operates approximately 391 stores under three distinct banners consisting of 226 Reitmans, 85 Pennington, and 80 RW&CO.


TSXV:RET - Post by User

Comment by Mephistopheles3on May 17, 2022 1:29pm
86 Views
Post# 34689692

RE:RET vs RET.A

RE:RET vs RET.AWhen you look at Google as an example of a company that has voting and non-voting shares, there is almost no difference between the two.  This is because shareholders have confidence that the company is acting in their best interest and so do not prescribe a value to the actual vote itself.

You only see these discrepancies when shareholders are putting a higher value on the voting power itself.. as it confers the ability to take a more active stance and force management and the BoD to take steps they would not otherwise.  

I feel that in this case, management has done a decent enough job on the operations side.. let's not be too pessmisc here, but if we had a more activist stance, there could be value unlocked.  For example, sell the real estate, leverage up slightly and do a large share buyback.  Likely also terminate the family who are taking big salaries and benefits.  So probably not going to happen while they control the voting shares! 
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