Groupon's Uncertain Future: Lease Terminations and Weak Earnings.
TL;DR Summary
Groupon, the Chicago-based online marketplace, issued a "going concern" warning during a weak Q1 earnings report, indicating the company could be insolvent within a year. The company also disclosed it was terminating the lease at its massive River North headquarters two years early. Groupon had a net loss of $29 million in Q1 and about $164 million in cash left as of March 31. The company has been downsizing and retooling amid declining revenues, with two rounds of layoffs eliminating a total of 1,000 positions. The new CEO outlined an eight-point transformation strategy to turn the company around.
Topics:business#business#downsizing#going-concern#groupon#online-marketplace#transformation-strategy
- Groupon issues 'going concern' warning as Chicago-based online marketplace terminates River North HQ lease Chicago Tribune
- Groupon pays $9.6M to terminate lease at 600 West Chicago The Real Deal
- Groupon Stock Tumbles on Weak Earnings and Warning About Its Survival Barron's
- Groupon terminating HQ lease at 600 W. Chicago Avenue early Crain's Chicago Business
- Groupon has limited options before it runs out of cash Crain's Chicago Business
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