ShopNBC Clawing at the Bowl!

July 28, 2010

From the homeshoppingista blog:

“ValueVision Media, parent of the No. 3 home shopping network, filed a so-called “shelf registration,” or S-3 form, Monday with the Securities and Exchange Commission for the stock offering. ShopNBC declined to comment.

But in its filing the company said that if it doesn’t stem its losses, “We could reduce our operating cash resources to the point where we will not have sufficient liquidity to meet the ongoing cash commitments and obligations to continue operating.

Through a shelf registration, a company can fulfill certain SEC-mandated registration-related procedures before offering shares to the public, which permits the company to go to market more quickly when they are ready to do the public offering. The company essentially puts stock shares “on a shelf” in case it needs to raise capital for any reason.

We have a history of losses and a high fixed cost operating base and may not be able to achieve or maintain profitable operations in the future.

In its filing, ShopNBC said it had operating losses of about $41.2 million, $88.5 million and $23.1 million in the years ended January 30, 2010 (“fiscal 2009”), January 31, 2009 (“fiscal 2008”) and February 2, 2008 (“fiscal 2007”), respectively.

It also reported a net loss of $42 in fiscal 2009 and a net loss in fiscal 2008 of $97.8 million.

“While we reported net income of $22.5 million in fiscal 2007, this was due to the $40.2 million pre-tax gain we recorded on the sale of our equity interest in Ralph Lauren Media, LLC, operator of the polo.com website,” the S-3 filing said. “There is no assurance that we will be able to achieve or maintain profitable operations in future fiscal years.”

ShopNBC said it has high fixed costs, primarily driven by fixed fees on the merchandise it sells to cable and satellite operators in exchange for distribution.

“In order to operate on a profitable basis, we must reach and maintain sufficient annual sales revenues to cover our high fixed cost base and/or negotiate a reduction in this cost structure,” the filing said. “If our sales levels are not sufficient to cover our operating expenses, our ability to reduce operating expenses in the near term will be limited by the fixed cost base. In that case, our earnings, cash balance and growth prospects could be materially and adversely affected.”

ShopNBC reported that it has limited unrestricted cash to fund its operations, $20.9 million as of May 1, 2010 (with an additional $4.9 million of cash that is restricted and used to secure letters of credit and similar arrangements).

“We expect to use our cash to fund any further operating losses, to finance our working capital requirements and to make necessary capital expenditures in order to operate our business,” the filing said. “We also have significant future commitments for our cash, primarily payments for our cable and satellite program distribution obligations and redemption of our Series B Preferred Stock. If our vendors or service providers were to demand a shift from our current payment terms to upfront prepayments or require cash reserves, this will have a significant adverse impact.”

It appears that ShopNBC’s shareholder GE Capital Equity will have to approve the offering, according to an 8-K that the network filed with the SEC in June.

“On June 10, 2010, our board of directors authorized the filing of a shelf registration statement on Form S-3 with the Securities and Exchange Commission covering the sale by our company of up to $75,000,000 of securities, including common stock, preferred stock, warrants, units and stock purchase contracts,” the company said in that filing. “Our shareholders agreement with GE Capital Equity Investments, Inc. (“GE Equity”) and NBC Universal, Inc. require the consent of GE Equity in order for our company to issue new equity securities and to incur indebtedness above certain thresholds, and there can be no assurance that we would receive such consent if we made a request.”

ShopNBC’s largest shareholder, NBC Universal, back on June 24 decided not to sell its 6,452,194 shares in the home shopping network “due to prevailing prices.”

Who knew that the distant number 3 network was in such financial dire straits? My guess is that repeated scandal after scandal from one of the networks cash cows, Invicta, has surely taken a toll. From the faulty Ocean Quest screw design and moldy dive cases; to Swinagate and the Great D-D Debacle of 2010, the 27 hours of watches marathon revealed few Invicta sellouts compared to last years event. And the revelation just the other day that watches marketed as having diamonds but actually containing crystals surely is not going to help sales.

I wonder if ShopNBC Host Jim Skelton, who recently went on a very public spending spree buying two cars, a new house and a shit ton of knives, all while working a few weeks over several months with one medical ailment after another, might now be regretting blowing all that cash?

What would ShopNBC’s demise mean for all of those stuck with bad watches from the past 7 months?

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28 Responses to “ShopNBC Clawing at the Bowl!”

  1. LIES ALL LIES! Says:

    It means the Suzanne Summers brand will kiss some major ass to get back on HSN.

  2. smsh Says:

    I can’t imagine why these people continue to buy these watches after having problem after problem with them! Oh, “my watch is moldy” – that’s ok?!? “I can’t wait to buy my next Invicta.” ” Jim, you’re the man.”
    I just don’t get it!

    People, this is your hard-earned money. What are you doing??

  3. Big P Says:

    This article is not one of the best, it is the best article!!!

    Poor poor slopnbc, if I really try hard I can fake a real tear.

    My breakfast tasted even better today, what a groovy way to start the day, the noose is tightening up.

    Invicta drove the golden dagger through the jugular of slopnbc and it’s “top men” can’t fix this one.

    Invicta’s myriad of transgressions increase by the day like a pregnant parasite, this article has to be the most informative and profound piece I have yet to encounter.

    Great….no….no…. phenomenal job betterskills!!!!!!!

  4. Mikey Skelton Says:

    Do you mean that they might go public? Just think of it, if they went public how many shares would Invicta try and purchase? How many shares do you think Jim Skelton woudl try and purchase? How many shares do you think the entire WatchGeek membership would try and purchase?

    The WatchGeek Clan could own a major share of the company and be in control or possibly there leadership of Jimmy Skelton, Michael Davis and Eyal Lalo could own a majority share of it all and have a 24/7/365 Invicta-Thon.

    Truly sad but they only have themselves to blame for there own very serious financial problems.

  5. betterskills Says:

    All credit due to Miss Moss at the homeshoppingista blog who found this out! I’ve been coming financial news reports for clues but didn’t turn anything up.

  6. Mikey Skelton Says:

    SMSH … most home shopping networks, like ShopNBC survive off of those who are social rejects. People who cannot fit into the real world because of a multitude of mental reasons. They sit and watch and there friends on the screen talk to them and they begin to want what there friend on the screen has to sell them.

    Its a sickness that some have, a truly morbid sickness that they think those people on tv actually care about them and are concerned for them but in reality all they truly care about is there wallet and will do whatever it takes to drain that wallet dry.

    Skelton and crew has done what a few others have done as well and created an internet forum to cater to those society mental rejects. When somebody all of a sudden realizes the sham of it all and speak up about it they, well we know what happens to them dont we?

    FaceBook is another site that is being used by companies like ShopNBC as well. There customers or should I say friends have what they think is a direct connection with the salesman or should I say friends they see on the television. Its a truly sad world preying when they prey on those who are to stupid to honestly protect themselves from the villians our society has created.

    And then there is Skelton, Davis and Lalo … trash that not even our sick society should allow to excist.

  7. betterskills Says:

    They already are public – they want to be allowed to sell more stock to raise capital on an as needed basis; they want to “shelve” a portion of it and quick sell more. That they’ve been hovering in penny stock range for weeks, currently they’re at 1.82, so I’d assume this would drive the price even lower.

  8. smsh Says:

    Mikey S.

    I see your point. I still think it is sad.

    The other funny thing – JS and his cronies used to make fun of the Watch Commander for being loud and obnoxious.

    Pot – meet – Kettle. He cheapens everything he tries to sell, and they all think he’s the best thing since slice bread. His shtick is not even close to amusing, cute or professional. It reminds me of a 13 year old boy who has to have attention focused on him 24/7. Look at me – I wear a HUGE ridiculous sized watch on my arm – I’m cool!

  9. krane11367 Says:

    smsh,

    How right you are.

    The original thread on that SICK WG site about the Classique model with the fake diamonds, WatchLords.com reported, has been scrubbed even after it was closed, taking out damning testimony from one of their own moderators, among other things. Here’s the richest quote from the original thread, and this came from Skelton himself (get ready for this whopper):

    “There’s no one lying to you when they’re selling you a watch.”

    Yes, that quote was written by Jim Skelton!

    Fuck a duck man…when the smoke clears and all this is gone, the soup line is only too good for this truly disgusting creature. Spitting on that jerk would only clean him up.

  10. jr Says:

    ShopNBC is a televised swap meet. It doesn’t matter what name is on the letterhead. Failed in the 90s, failed in the 00s, failing in the 10s.

  11. Big P Says:

    I think Jim Skelton cannot have an orgasm unless he sees his own face on TV.

    Skelton probably shoots his manhood on his watch collection while standing in front of his TV & mirror, and has Davis lick up the leftovers.

    Word is spreading quicker than Mrs. Lalo’s thighs, shopnbc and their sales revenue are getting more quiet than your local morgue.

    What a fucking horrid scam these sons of bitches have going, Invicta and anyone associated with the brand and sloppynbc will get zero sympathy from me, or anyone else with a functioning brain in their head.

    Skelton says nobody is lying….right!!!, and I just got back from a wonderful vacation from the moon, where I was hanging with Elvis and John Lennon….puke!!!!!

    The priceless, and I do mean priceless looks on grape ape’s and skellie’s face is beyond pleasurable, they are in fact S-Q-I-R-M-I-N-G.

    Do not let Temple and the rest of them get on your good side, they fucking know what their selling, shysters!!!

  12. OMAR Says:

    For the past several months, issues regarding defective watches have been dismissed by SNBC and Watchgeeks who tell the consumers “Shut up and go buy some more watches or leave.” The powers that be at Invicta, SNBC and WatchGeeks are as responsible for the downward spiral of sales as anything else.

  13. krane11367 Says:

    OMAR,

    You could not have said it better. Arrogance, incompetence, and obnoxiousness make for a poisonous stew; sooner or later, most people wise up.

    Except for about two dozen rabid WG members, who would buy bloody stool if it had an Invicta logo on it. And to those cretins, well, since they are tasteless rubes, they get what they seek.

    They get what they deserve, too. One look at their avatars pretty much tells you all you need to know about people whose TV tastes went from Romper Room right to ShopNBC. In fact, they probably equate Skelton to Mr. Doobie; it’s pretty much the same level of sales pitch.

  14. Latin for Invincible Says:

    Italian for disgraziade

    “disgrace”

    “If I sell you a watch once…..

    I will fool you a thousand times…..Invicta”

    Eyal Lalo
    President & Ceo
    IWG

  15. Big P Says:

    “Poisonous stew”

    “Tasteless rubes”

    Romper room right to shopnbc”

    Krane, this is fucking genius and your firing on all cylinders!

    In the end, Invicta will have a glass jaw, down goes Invicta….down goes Invicta!!!!

  16. Fuzzy Wabbit Says:

    Me thinks lil Jimmy knows the gravy train is coming to an end soon. His recent buying spree was his last hurrah while he still had good credit and a steady job. BK may be in the works this time next year. Don’t get me wrong, I don’t wish any bad luck on anyone, not even my worst enimies. However, this slimeball would be just the kind of person to pull a stunt like this. He brags about his purchases like he has a ton of cash flow when in reality, without this job he will be back at Sunglass Hut and an aprtment taking the bus to work before you know it. You better continue kissing Uncle Lalo’s ass Jaws because when Slop goes belly up or when the new Owners liquidate that loser, you will be on the streets quicker than you can say Flame Fusion.

  17. Uh Ohhh Says:

    Ladies and germs, Skelton on at midnight eastern time with Daniel “fake” Mink, too bad it wasn’t another Invicta TTV disaster.

    I was at a restaurant last night, I was sitting across from Eyal Lalo and Jim Skelton, when I overheard something very unusual.

    During their second course, I overheard Lalo whisper to Skelton, “Jim, no matter what happens to Invicta, you’ll always suck cock better than my wife can, now, could you pass the potatoes lover”.

  18. betterskills Says:

    Jim’s been on a lot of late nights – I thought he said, on the air a few weeks ago, that he didn’t have to do those anymore; implying that it was Shawn Wilsie that had to do them?

  19. Hal Says:

    TT is on tonight. I’ve noticed lately that the vendors have been partnered with any host but Skelton. I really feel that Wing, Larry and Daniel can’t stomach this clown and so they’ve been on with TT or DG. Davis and Skelton are like an awful Crosby and Hope slinging the heavy metal wrist bangles to the losers in geek land and producing the man tit jiggle and round mouth wonder to silence. These jerks are down the river and the hobo is looking for that boxcar to freedom. Lalo speeds away in his Bentley with the fuzzy yellow suede interior while shopnbc burns.

  20. Vicki Says:

    Jim did the show and Daniel acted pleasantly surprised exclaiming how great it was to do a show together as it’s been too long…yeah right!

  21. Todays Top Vermin Says:

    Todays top vermin has ya yearnin n burnin

    It’s not a good deal but they keep on turning ya

    “broke”

    Your pile a junk grows from the tip of your hollow head to ya

    Tiny tiny little

    “tiptoes”

    Don’t fall for the yellow trap their shit is whack

    Invicta’s shit is like garbage cans meant to be taken out on a weekly basis for a fact

    “we want termination”
    “Invicta’s goin down”
    “we say termination yeah”

    Lalo and his crew are weak like scottie tissue they walk around with their ugly aura people will tend to ignore them

    Jim and his facade transparent as a ghost lets hope then toast the rancid roast of Invicta

    “Invicta’s goin down”
    “Invicta’s goin down yeah”

    So listen up all ya stinkin maggot geeks that fly out at light speed from their mommy’s closets stink

    Your time is ticking so very very short you betta abort Invicta’s mission red alert

    c’mon Invicta’s goin down”
    Invicta’s goin down yeahhhhh”

    “going down yeahhhhhhhhhh”

    Lyrics by Today’s Top Vermin

    Inspiration: Invicta’s Goin Down

    Special thanks: Hate for Invicta

  22. Chef DiLongdong Says:

    Well it just seems to me that even if nbc and invicta keep selling their watches on tv in the future, the word is out regardless.

    I think invicta will eventually sink themselves, look at all the legal issues, holy crap.

  23. LIES ALL LIES! Says:

    Vicki, don’t be fooled for a minute, Skelton, Lalo, and Mink are all cut from the same cloth.

    While true, Mink has no love for Invicta (on two occasions I have heard him take on air jabs at them, one concerning the “quick change” system they used, the other “We don’t make 20,000 watches and the hands fall off”) Mink appeases Jim and works with him because like it or not, Jim sells more watches than Tim, Daniel, and Shawn. At least Renato does their own photography rather than relying on Skelton, probably because Mink does not want to rely on the same shill who is Invicta’s mark.

    Remember, Daniel Mink and Renato were doing Swiss Made and diamond controversies long before Invicta made it cool. I guess in the controversy department one can say Renato is truly a trend setter.

  24. krane11367 Says:

    Now the guy who bought the IWG Classique faux diamond watch got nothing but a form email back from ShopNBC. Well…what did he expect?

    Honestly and integrity from ShopNBC?

    A truthful explanation from Jim “No One Is Lying To You When They’re Selling You A Watch” Skelton?

    A PM of encouragement from Michael “Working On My Fourth Baccardi Chin” Davis?

    A wave from the limo from Lalo?

    Hey, “veteran member” WG – you’ve had an opportunity to view the other 24,000 Invicta problems, lies, shit watches, garish styles, and general incompetence for the past year, and you STILL bought their crap – literally and figuratively?

    You get what you pay for, Mr. Watch Geek. Enjoy your crystals, and remember: S. Fingers will be back with more Invicta values this week, and many with just five Value Pays!

    You can’t make this stuff up. As someone who is fed up with the entire WG scam and those who blindly follow those people all I can say is: Good!

  25. Mikey Skelton Says:

    I feel sorry for that Classique owner, not because he got chrystals when he it was advertised as diamonds but because he was/is that stupid of a person to think he would get 40 diamond accents and then that he was/is that stupid to think he would get a phone call saying there was a mistake and then that he was/is thinking they would send a watch with actual diamonds.

    He is the perfect Invicta customer. Now what is sad is it was Skelton who told him they were working on the problem and they would be getting a phone call about it and that they were going to correct the problem, note it was Skelton who said it and then deleted the same message. Kind of interesting, he really was not speaking for ShopNBC or for Invicta but was once again like he has been for many many years telling people what they want to hear so that he can look like a big important A’hole and we all know that he is one of them.

  26. Big P Says:

    I would rather gargle a fresh turd than purchase an Invicta, or anything from slopnbc.

    Feeling bad for the guy who bought the fake diamond chip accents is irrelevant, these watchgeeks would lick Invicta’s spiked boots even if they were logged half way up their asses.

    Jim can send and delete all the apologetic emails he desires, but the TRUTH is, he put the shhhhh in shill.

    Wouldn’t it be nice if Invicta dissolved quicker than a pile of pop rocks in a hurricane, just sayin.

    I guess Invicta is going to get away with the fake diamond chippers, how do they get away with all of this crap I ask you?

  27. krane11367 Says:

    Big P,

    You da MAN! The shhh in shill…priceless!

  28. Big P Says:

    Invicta’s Diamond Accent Power Pledge:

    “At Invicta, we promise you the very best fake diamond chips that we sell on TV as real diamond accents, we promise”

    “Our diamond chips are made from the finest glass money can buy, we can even trick god into buying our junk watches”

    “We have our best Keebler elves working round the Keebler clock to ensure every watch has plenty of chips”

    “Invicta never uses by-products or hydrogenated oils, instead we will just lie directly to our customers faces, just sayin”

    “Remember, I personally proudly profusely proactively ponder our power pledge with pickled peppers, or my name isn’t Eyal Lalo, master of the oceans, slapper on the crapper”


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