BBX Capital, a longtime diversified Fort Lauderdale firm headed by veteran entrepreneur Alan Levan, said Tuesday it is embarking on a campaign to restructure its operations, reduce staff and deregister its stock in a bid to cope as the company foresees the onset of a national recession.<\/p>\n
\u201cWe just are concerned about what we\u2019re seeing on the national economy and what\u2019s going on in Washington between tariffs, between volatility and high interest rates,\u201d Levan, the chairman and CEO, told the South Florida Sun Sentinel in a telephone interview. \u201cConsumer confidence is getting lower and lower and we\u2019re in businesses that rely on consumers.\u201d<\/p>\n
\u201cYou know that in markets like this we have tended to react very early, much earlier than others,\u201d he added. \u201cSometimes we\u2019re not correct but sometimes we are very correct. We did this in the \u201970s during the recession \u2014 we cold-turkey stopped raising money when the market collapsed in 1974.\u201d
\n\u201cWe did it with Bank Atlantic in 2007,\u201d he said. \u201cWe stopped lending. Everybody thought we were crazy, and a year later the market collapsed.\u201d<\/p>\n
From headquarters in the city\u2019s most upscale mixed-use building, The Main Las Olas, BBX Capital operates subsidiaries ranging from real estate development to logistics to retail confections to door manufacturing and wholesaling. Levan himself is a longtime Broward County business and community leader, overseeing the former BankAtlantic, and then BBX, which has controlled and\/or invested in a variety of ventures over the years in South and Central Florida, including Bluegreen, a national timeshare operation that was sold several years ago.<\/p>\n
More than three years ago, Levan contributed millions of his own money to help form the Alan B. Levan | NSU Broward Center of Innovation at Nova Southeastern University in Davie, where entrepreneurs and early-stage companies are based as they seek to stabilize themselves for future growth. The center is a public-private partnership with Broward County. The actions by BBX have no bearing on the center.<\/p>\n
But for the companies under the BBX umbrella, Levan said Tuesday, now is the time for examination and recalibration while the company has the cash on hand \u2014 an amount that stands at $87.5 million, according to the company\u2019s annual report filed with the Securities and Exchange Commission.
\n\u201cWe are looking at every one of our businesses,\u201d he said. \u201cWe\u2019re protecting our cash, and if we are right we will have lots of cash for future investment in a down market.\u201d<\/p>\n
The company\u2019s shares, which reached a 52-week high of $9.24, plunged by up to 30% in trading Tuesday \u2014 to a yearlong low of $4.35 amid another tumultuous multi-day stretch on Wall Street driven by President Donald Trump\u2019s sweeping tariff campaign against multiple countries.
\nLevan said that after the company\u2019s shares are deregistered, investors will still be able to trade the stock over the counter. \u201cFor us at this point in time, in terms of saving expenses, it doesn\u2019t make any sense for us to be an SEC-registered company,\u201d he said.<\/p>\n
If the market conditions change \u201cand we see viable opportunities, we may relist,\u201d he said. \u201cNobody is losing any stock.\u201d
\n\u201cI talked to a number of investors today who are very supportive of what we\u2019re doing,\u201d he added.
\nThe company issued a news release early Tuesday outlining its plans, which are expected to take anywhere from two to five years to execute. Levan said no financial advisers have been retained at this point.<\/p>\n
Levan said that development projects underway through its Altman Companies subsidiary will continue. But projects that have not started likely will be placed on hold.
\n\u201cWe already have the investors and we have financing,\u201d he said. \u201cAnything else we\u2019re going to take a pause on.\u201d
\nAs for the other enterprises?
\n\u201cWe\u2019re going to look under every rock for expense savings and analyze every business,\u201d he said.
\nBesides the Altman firms, the businesses include BBX Sweet Holdings, which include IT\u2019SUGAR and Hoffman\u2019s Chocolates, and Renin, the door manufacturer and wholesaler whose products are made in Canada, distributed in the U.S. and subject to Trump\u2019s newly installed tariffs. The doors are sold through the large retail chains Lowe\u2019s, Home Depot and Menards, a retailer in the Midwest.
\nAmong the options: \u201cStaying the course, selling, merging or closing.\u201d
\nLevan said he doesn\u2019t know how many people would lose their jobs, adding more time is needed to undertake an analysis. But BBX does intend to reduce the size of its board of directors from 12 to seven.<\/p>\n
Besides Levan, the remaining board members will include John E. Abdo, Jarett S. Levan, Seth M. Wise and independent directors Steven M. Coldren, Willis N. Holcombe and Neil Sterling, according to the Tuesday statement..
\n\u201cWe are assuming a recession sometime down the road, and we are assuming a difficult economic environment over the next couple of years,\u201d Levan said. \u201cI\u2019d rather be early than sorry.\u201d<\/p>\n
BBX Capital’s decision to restructure and reduce staff is a proactive measure to prepare for the potential economic downturn. The company’s history of making prudent decisions and its diversified operations will help it navigate the challenges ahead. As the company moves forward with its plans, it will be important to monitor its progress and adjust its strategy as needed.<\/p>\n
Q: Why is BBX Capital restructuring and reducing staff?
\nA: BBX Capital is restructuring and reducing staff in preparation for a potential national recession and to cope with the current economic uncertainty.
\nQ: What businesses does BBX Capital operate?
\nA: BBX Capital operates subsidiaries ranging from real estate development to logistics to retail confections to door manufacturing and wholesaling.
\nQ: How will the company’s shares be affected?
\nA: The company’s shares will be deregistered, but investors will still be able to trade the stock over the counter.
\nQ: What is the timeline for the company’s plans?
\nA: The company’s plans are expected to take anywhere from two to five years to execute.
\nQ: How many people will lose their jobs?
\nA: The company does not know how many people will lose their jobs at this time, as it needs more time to undertake an analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"
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