Showing posts with label closing. Show all posts
Showing posts with label closing. Show all posts

27 May 2016

Without Help, Grande Prairie SPCA Closing Within Days

The Grande Prairie & District SPCA will be closing their doors by the end of the month, unless the City and County town councils agree to step in and help out at next week’s council session.

“The last meeting we had with the City and County has left us hopeful,” said Nell Martell, who came on board as fundraising and public relations manager for the non-profit animal shelter last December.

The shelter had an intake of around 1800 animals in 2015.

The SPCA is behind $100,000 in arrears to the Canada Revenue Agency, with a current frozen account and no ability to pay staff or continue operations. The deficit tally for the non-profit currently sits at a grand total of $250,000 – with only minimal grassroots donations chipping away.

According to the shelter’s Facebook page there has been “past mismanagement of the situation that led to the current crisis” - as written by current board president, Laurie Fisher on May 25, confirming that considerable staffing and operations cutbacks have been made since last year.

Fundraising revenues also fell drastically from $119,238 in 2014 to $43,248 last year, much of which may be attributed to the economic downturn.

Martell notes that the community has stepped up with an outpouring of support, from staff working on a volunteer-basis, to community members donating what they can, to adopting out existing shelter animals through a shelter drive – all in a time of economic uncertainty for Albertans.

“We’re down to 12 cats that need homes – that’s our greatest fear…where will these animals go without the SPCA?” said Martell, adding that while there are smaller shelters throughout the County, none would have the resources that the SPCA has, including the ability to assist with overflow from other shelters that are overcapacity; few of the smaller shelters would have the same ‘open door’ approach as a bigger centre like the SPCA would have.

The shelter’s reach extends far – and includes the expansive Grande Prairie County and reaching the B.C. border.

According to Martell, for the better part of the last decade the SPCA had the contract to run the Grande Prairie pound, as this was seen as a major cost and revenue savings to have both operations share space and resources.

The contract was not renewed last year and has been under the direction of the City since June 2015. As a result, the SPCA lost a long-time source of revenue ($531,394 in 2014); combined with mounting debt, the shelter has admitted to have gotten into “deep, deep debt.”

The hope is that the City and County will see the vital role the SPCA plays to animal rescue and rehoming for Grande Prairie and the surrounding county.

An appeal was made by the shelter board at The City of Grande Prairie community safety meeting held this week to request 75% (around $90,000) of all animal licensing revenues to help go toward the shortfall.

The shelter is also hopeful they can get the contract back to run the pound.

The Go Fund Me campaign currently sits at $15,875 – a far cry from its goal of $250,000.

Learn more on the Grande Prairie SPCA website.

By Lindsay Seewalt
Lindsay is an experienced journalist and mother of three whose heart and home is always open to a four-legged friend. With her Corgi, Angie, as household editor-in-chief, Lindsay gives back to the animal planet through the written word on anything and all ado about pets. She is passionate about topics regarding animal welfare and responsible pet ownership, which she aims to instill in both her readers and children to be compassionate animal lovers who are conscious and considerate that furry friends around the globe deserve a voice.

17 October 2015

PetSmart's Acquisition of Petco Encounters Roadblocks

PetSmart and Petco were in discussion to merge the two companies with PetSmart acquiring Petco. Financial analysts had mixed opinions over what this acquisition would mean for the North American pet supply market. The two companies are still interested in joining however the deal has met some roadblocks; according to Reuters the companies are reportedly having disagreements over sharing the risk of having the deal approved by American antitrust authorities. All parties involved have asked for confidentiality, declined to comment, or did not respond to comment requests from Reuters.

Petco has declined a proposal that requires compensation to PetSmart should the Federal Trade Commission require many store closures. Petco has asked several private equity firms to submit their acquisition offers within several weeks. The owners hope to sell Petco for at least $5 billion USD, including debt.
   
Petco filed for an initial public offering in September 2015 and this avenue will be opened if the company is not sold.

 

14 October 2015

Insight Into the Potential PetSmart-Petco Merger

Petco Holdings Inc will potentially be acquired by PetSmart Inc. The two companies have had informal discussion regarding PetSmart’s potential acquisition of Petco. However, neither company is publicly disclosing any information regarding a potential acquisition.

While Petco operates more stores in the United States their revenue does not compare to PetSmart. Petco has 1,400 stores in the US and had a revenue of $3.99 billion USD last year while PetSmart has 1,300 stores in the US and had a revenue of $6.9 billion USD.

If PetSmart acquires Petco then the resulting company would control approximately 30% of the American specialty pet retail market. Such dominance would probably result in store closure according Howard Davidowitz, CEO of Davidowitz & Co., a retail investment bank and consulting firm. Davidowitz said, "They would never even get to this point without having met with every smart merger lawyer and looked at this 1,000 different ways. When you go forward with this, you are spending tens of millions of dollars just to explore it."

Wedbush Securities Analyst, Seth Basham believes that a merger would increase market concentration which would be a warning sign for regulators. Regulators may require store closures. Even if they do not, PetSmart may close Petco locations. Basham said that approximately 72% of Petco locations are within five miles of a PetSmart.

Regarding a merger, Davidowitz said, "If you are asking me if things are going to be better after the merger, (the answer is) absolutely not. What they should be doing is perfecting their businesses, coming up with specialty niches within pets. I can think of a hundred things they ought to be doing."

Basham believes a merger is “feasible and very attract financially”. He said, "We believe a combination with Petco would buy PetSmart synergies, but would not solve its competitive dilemma, underscored by rapidly shifting shopping behavior and increasing online competition. In fact, an acquisition of Petco could distract PetSmart from addressing this issue and add increasing pressure. After all, Petco is a smaller and somewhat weaker competitor with generally higher in-store pricing."