BBX Capital, Inc. Announces Strategic Steps
BBX Capital (OTCQX:BBXIA) announced strategic steps to preserve its $87.7 million cash position amid economic challenges. The company plans to suspend SEC reporting and transition to OTC Markets filing, citing significant economic uncertainty at its subsidiaries.
The company faces multiple challenges including market volatility, economic deterioration, potential tariffs, recession forecast, decreased consumer spending, inflation, high interest rates, and supply chain issues. In response, BBX Capital is implementing cost-saving initiatives including: possible sale of subsidiaries and investments, termination of certain operations, pausing real estate development, staff reductions, and executive salary cuts.
The company will reduce its Board of Directors from twelve to seven members and expects the strategic process to take 2-5 years. BBX Capital's Class A and Class B Common Stock will continue trading on OTC Markets, with Class A stock expected to move to the OTCID Market by July 2025.
BBX Capital (OTCQX:BBXIA) ha annunciato misure strategiche per preservare la sua posizione di cassa di 87,7 milioni di dollari in mezzo a sfide economiche. L'azienda prevede di sospendere la rendicontazione SEC e passare alla registrazione nei mercati OTC, citando l'incertezza economica significativa presso le sue controllate.
L'azienda affronta molteplici sfide, tra cui la volatilità del mercato, il deterioramento economico, potenziali dazi, previsioni di recessione, diminuzione della spesa dei consumatori, inflazione, tassi d'interesse elevati e problemi nella catena di approvvigionamento. In risposta, BBX Capital sta implementando iniziative di risparmio sui costi che includono: possibile vendita di controllate e investimenti, cessazione di alcune operazioni, sospensione dello sviluppo immobiliare, riduzioni del personale e tagli agli stipendi dei dirigenti.
L'azienda ridurrà il suo Consiglio di Amministrazione da dodici a sette membri e prevede che il processo strategico richiederà da 2 a 5 anni. Le azioni ordinarie di Classe A e Classe B di BBX Capital continueranno a essere scambiate nei mercati OTC, con le azioni di Classe A che si prevede passeranno al mercato OTCID entro luglio 2025.
BBX Capital (OTCQX:BBXIA) anunció medidas estratégicas para preservar su posición de efectivo de 87.7 millones de dólares en medio de desafíos económicos. La compañía planea suspender la presentación de informes ante la SEC y transitar a la presentación en los mercados OTC, citando una significativa incertidumbre económica en sus subsidiarias.
La empresa enfrenta múltiples desafíos, incluyendo la volatilidad del mercado, el deterioro económico, posibles aranceles, pronósticos de recesión, disminución del gasto del consumidor, inflación, altas tasas de interés y problemas en la cadena de suministro. En respuesta, BBX Capital está implementando iniciativas de ahorro de costos que incluyen: posible venta de subsidiarias e inversiones, terminación de ciertas operaciones, pausa en el desarrollo inmobiliario, reducciones de personal y recortes salariales para ejecutivos.
La compañía reducirá su Junta Directiva de doce a siete miembros y espera que el proceso estratégico tome de 2 a 5 años. Las acciones comunes Clase A y Clase B de BBX Capital continuarán negociándose en los mercados OTC, con acciones Clase A que se espera se trasladen al mercado OTCID para julio de 2025.
BBX Capital (OTCQX:BBXIA)는 경제적 어려움 속에서 8,770만 달러의 현금 보유량을 유지하기 위한 전략적 조치를 발표했습니다. 이 회사는 SEC 보고를 중단하고 OTC 마켓으로 전환할 계획이며, 자회사에서의 상당한 경제적 불확실성을 언급했습니다.
회사는 시장 변동성, 경제 악화, 잠재적 관세, 경기 침체 예측, 소비자 지출 감소, 인플레이션, 높은 금리, 공급망 문제 등 여러 가지 도전에 직면해 있습니다. 이에 BBX Capital은 비용 절감 이니셔티브를 시행하고 있으며, 여기에는 자회사 및 투자 매각 가능성, 일부 운영 종료, 부동산 개발 중단, 인력 감축, 경영진 급여 삭감 등이 포함됩니다.
회사는 이사회를 12명에서 7명으로 축소할 예정이며, 전략적 프로세스가 2-5년이 걸릴 것으로 예상하고 있습니다. BBX Capital의 클래스 A 및 클래스 B 보통주는 OTC 마켓에서 계속 거래되며, 클래스 A 주식은 2025년 7월까지 OTCID 마켓으로 이동할 것으로 예상됩니다.
BBX Capital (OTCQX:BBXIA) a annoncé des mesures stratégiques pour préserver sa position de trésorerie de 87,7 millions de dollars face à des défis économiques. L'entreprise prévoit de suspendre les rapports SEC et de passer à la déclaration sur les marchés OTC, citant une incertitude économique significative au sein de ses filiales.
L'entreprise fait face à de multiples défis, notamment la volatilité du marché, la détérioration économique, d'éventuels tarifs douaniers, des prévisions de récession, une baisse des dépenses des consommateurs, l'inflation, des taux d'intérêt élevés et des problèmes de chaîne d'approvisionnement. En réponse, BBX Capital met en œuvre des initiatives d'économies de coûts comprenant : la vente possible de filiales et d'investissements, la cessation de certaines opérations, la suspension du développement immobilier, des réductions de personnel et des coupes salariales pour les dirigeants.
L'entreprise réduira son conseil d'administration de douze à sept membres et s'attend à ce que le processus stratégique prenne de 2 à 5 ans. Les actions ordinaires de classe A et de classe B de BBX Capital continueront à être négociées sur les marchés OTC, avec des actions de classe A qui devraient passer au marché OTCID d'ici juillet 2025.
BBX Capital (OTCQX:BBXIA) hat strategische Schritte angekündigt, um seine Bargeldposition von 87,7 Millionen Dollar angesichts wirtschaftlicher Herausforderungen zu sichern. Das Unternehmen plant, die SEC-Berichterstattung auszusetzen und zu OTC Markets zu wechseln, da es erhebliche wirtschaftliche Unsicherheiten bei seinen Tochtergesellschaften gibt.
Das Unternehmen steht vor mehreren Herausforderungen, darunter Marktschwankungen, wirtschaftlicher Rückgang, potenzielle Zölle, Rezessionsprognosen, sinkende Verbraucherausgaben, Inflation, hohe Zinssätze und Probleme in der Lieferkette. Als Reaktion darauf implementiert BBX Capital Kostensenkungsinitiativen, die den möglichen Verkauf von Tochtergesellschaften und Investitionen, die Beendigung bestimmter Operationen, die Pause bei der Immobilienentwicklung, Personalabbau und Gehaltskürzungen für Führungskräfte umfassen.
Das Unternehmen wird seinen Vorstand von zwölf auf sieben Mitglieder reduzieren und erwartet, dass der strategische Prozess 2 bis 5 Jahre in Anspruch nehmen wird. Die Stammaktien der Klassen A und B von BBX Capital werden weiterhin an den OTC Markets gehandelt, wobei die Aktien der Klasse A voraussichtlich bis Juli 2025 in den OTCID-Markt überführt werden.
- Strong cash position of $87.7 million as of December 2024
- Proactive cost-reduction initiatives to preserve liquidity
- Reduced operational costs through board size reduction and executive salary cuts
- Significant economic uncertainty affecting subsidiaries
- Possible termination of certain business operations
- Decreased consumer spending and lower retail traffic
- Potential sale of subsidiaries and investments may lead to business downsizing
- Suspension of new real estate development activities
Intends to Suspend Filing Reports with the SEC and File Financial Information with the OTC Markets
As disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed by the Company with the Securities and Exchange Commission (the “SEC”), recent headwinds and challenges have resulted in significant economic uncertainty at the Company’s subsidiaries. These challenges include (i) volatility and turmoil in the economy and markets, (ii) the deterioration of the economy generally, (iii) announced and the expectation of future tariffs, (iv) a forecast of a possible recession and increased unemployment, (v) decreased consumer sentiment and discretionary spending and lower traffic in our retail locations, (vi) inflationary conditions, (vii) elevated interest rates, and (viii) supply chain issues.
Further, the Company and its subsidiaries were structured for scale and growth that are not supported by current economic conditions. The Company and its management have in the past been faced with recessions and economic turmoil and from those experiences have learned the importance of responding quickly to the challenges faced.
Based on the Company’s review of the challenges and volatility of the current environment, the Company has considered a full range of strategic steps with respect to its holdings and operations in an effort to mitigate losses, reduce costs and maximize liquidity.
Accordingly, the Company has made a determination to pursue various cost saving initiatives, including the possible sale of subsidiaries and investments, the possible termination of certain operations, a pause of new real estate development activities, staff reductions and reductions of executive salaries. The Company anticipates that it will engage investment bankers and advisors as appropriate to assist it with these initiatives and it is anticipated that this strategic process may take two to five years.
Additionally, based on its evaluation, the Company has also made a decision to deregister its Class A and Class B Common Stock and suspend its reporting obligations with the SEC. The Company believes that the current benefits of being an SEC reporting company did not justify the significant annual expenses and other costs associated with it. The Company plans to file a Form 15 to deregister its Class A Common Stock and Class B Common Stock under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which will suspend its reporting obligations under Section 15(d) of the Exchange Act.
In addition, it is anticipated that the size of the Company’s Board of Directors will be decreased from twelve directors to seven directors and that the seven directors of the Company will be Alan B. Levan, John E. Abdo, Jarett S. Levan, Seth M. Wise and independent directors Steven M. Coldren, Willis N. Holcombe and Neil Sterling.
The Company’s Class A Common Stock is currently traded on the OTCQX Market, and its Class B Common Stock is currently traded on the OTC Pink Market. Once SEC filings are suspended, the Company intends to file financial and other information required by the rules of the OTC Market in order to allow for continued trading of its Class A Common Stock and Class B Common Stock on the OTC Markets.
About BBX Capital, Inc.: BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) is a
Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of certain words, including “believe,” “may,” “continue,” “intend,” “will,” “anticipate” and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from the results expressed or implied by the forward-looking statements. These risks and uncertainties include, among others, risks associated with respect to the deregistration of the Company’s Class A Common Stock and Class B Common Stock and suspension of the Company’s reporting obligations under the Exchange Act, including that the anticipated benefits may not be realized, that the Company’s Class A Common Stock or Class B Common Stock may not continue trading (including, that while it is expected that the Company’s Class A Common Stock will continue trading on the OTCQX in the near-term, it is anticipated that trading of the Company’s Class A Common Stock will ultimately be moved to the OTC Pink Market (which the OTC has announced will transition into the OTCID Market in July 2025) when required by the rules of the OTC Market or earlier in the discretion of the Company), and that the market price or trading volume of the Company’s Class A Common Stock or Class B Common Stock may be adversely affected; risks relating to the other strategic steps which may be taken by the Company, including that there is no assurance that any other strategic steps will be pursued or achieve the intended results and that the implementation of some or all of the other strategic initiatives could result in the recognition of material impairment losses and write-downs in future periods and that the timing of the strategic process may be longer than expected, and other risks and factors discussed in the Company’s filings with the SEC, including, without limitation, those disclosed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Many of these risks and factors are beyond the Company’s control. Further, past performance and perceived trends may not be indicative of future results. The Company cautions that the foregoing factors are not exclusive. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The Company does not undertake to, and specifically disclaims any obligation to, update, revise or supplement any forward-looking statement, whether as a result of changes in circumstances, new information, subsequent events or otherwise, except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250407280177/en/
BBX Capital, Inc. Contact Info:
Investor Relations Contact:
Leslie Martinez, Investor Relations
P: 954-940-5300
Email: investorrelations@BBXCapital.com
Media Relations Contact:
Kip Hunter, Kip Hunter Marketing
P: 954-303-5551
Email: kip@kiphuntermarketing.com
Source: BBX Capital, Inc.
FAQ
What is BBX Capital's (BBXIA) current cash position as of December 2024?
What cost-cutting measures is BBXIA implementing in 2025?
How long will BBXIA's strategic restructuring process take?
What changes are happening to BBXIA's board structure?
How will BBXIA's stock trading be affected by SEC deregistration?
