Franchise Group layoffs, on the record
Every job cut, severance charge and restructuring Franchise Group reported in its annual reports, 2020 to 2022, quoted from the filings.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2020 | 4,758 full-time and 3,325 part-time employees | December 26, 2020 |
| 10-K for 2021 | 9,119 full-time and 5,551 part-time employees | December 25, 2021 |
| 10-K for 2022 | 8,575 full-time and 5,662 part-time employees | December 31, 2022 |
Job cuts, severance and restructuring
Our summaryLiberty Tax segment reduced compensation costs by reducing head count in fiscal 2020, lowering operating expenses by $6.9 million.
Word for word“a decrease of $6.9 million in compensation costs due to reductions to head count in fiscal 2020; and” 10-K for 2020
Our summaryRestructuring expenses were recorded in the Transition Period and fiscal 2019 related to store closures and restructuring, with the restructuring expense line falling to zero in fiscal 2020.
Word for word“Restructuring expenses — 9,345 (9,345) (100) %” 10-K for 2020
Our summaryExecutive severance and related costs were incurred and added back to Adjusted EBITDA.
Word for word“Executive severance and related costs 6,360 933 Executive recruitment costs — 725 Stock based compensation 9,484 — Shareholder litigation costs 575 472 Restructuring expense — 9,345 Corporate compliance costs 796 614 Accrued judgments and settlements (238) 972 Store closures 592 — Rebranding costs 8,725 — Inventory fair value step up amortization 36,244 — Prepayment penalty on early debt repayment 8,752 — Right-of-use asset impairment 2,895 — Integration costs 2,703 — Divestiture of year-round accounting offices — 1,846 Acquisition costs 17,584 — Total Adjustments to EBITDA 94,472 14,907 Adjusted EBITDA $ 227,645 $ 28,019 Included in restructuring expense on the condensed consolidated statement of operations for the year ended April 30, 2019 is $1.3 million of depreciation, amortization, and impairment charges.” 10-K for 2020
Our summaryThe filing lists restructuring-related adjustments in its EBITDA reconciliation, including store closures and integration costs, but describes no layoff, workforce reduction, or severance program.
Word for word“Executive severance and related costs 302 5,643 Stock based compensation 14,956 8,923 Litigation costs and settlements (1,130) (1,070) Corporate compliance costs 2,172 543 Store closures 2,429 592 Securitized receivables, net (19,919) — Prepayment penalty on early debt repayment 36,726 44,996 Right-of-use asset impairment 2,948 2,895 Integration costs 16,655 2,703 Divestiture costs 515 — Acquisition costs 22,878 26,309 Loss on investment in equity securities 31,773 — Acquisition bargain purchase gain (132,559) — Total Adjustments to EBITDA (22,254) 91,534 Adjusted EBITDA $ 338,374 $ 190,903 Funding Requirements We believe that we have sufficient liquidity to support our ongoing operations and maintain a sufficient liquidity position to meet our obligations and commitments.” 10-K for 2021
| Fiscal year ended | Restructuring charges | Cash paid for restructuring |
|---|---|---|
| 2017-04-30 | $0 | — |
| 2018-04-30 | $5 million | $1.2 million |
| 2019-04-30 | $9.3 million | $2.3 million |
Franchise Group has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Franchise Group’s annual reports (10-K for 2022, 10-K for 2021, 10-K for 2020) and the financial data it files with the SEC, as of 2023-02-28. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.