Called the “ugliest color in the world,” Pantone 448C, or Opaque Couché, is a sickly kind of green-brown that turns the stomach just a bit.
So as a company, being compared to a nasty color that’s being used to dissuade teens from buying cigarettes is generally something you would want to avoid.
Unfortunately, Tailored Brands, owner of Jos. A. Bank and Men’s Wearhouse, drew that exact comparison from short seller Andrew Left of Citron Research. Left, who famously helped bring down the troubled pharmaceutical giant Valeant, posted a tweet calling the company the “stock version of Pantone 448C.”
The tweet comes the day after the retail firm reported dismal first-quarter earnings, missing analysts’ expectations for earnings per share by $0.16. Tailored Brands saw EPS come in at $0.29 a share, versus forecasts of $0.45 a share. The firm also reported a sales drop of 6.4%, compared with the same quarter last year.
Apparently that did not impress Citron and Left.
$TLRD is showing that it is the stock version of Pantone 448C. Bankruptcy in the next 12 months. Nothing to save here. DEBT DEBT DEBT
— Citron Research (@CitronResearch) June 9, 2016
Left focused on the company’s $1.6 billion in long-term debt, since the firm has just $36 million in cash on hand. Thus, Left’s thought is that the company will go bankrupt.
The stock is down 22% in trading Thursday, at $12.11, as of 1:29 p.m. ET.
- Google Finance