Savers is a popular thrift store chain with locations throughout the United States and Canada. However, despite its large presence, Savers is not a publicly traded company. Savers is a privately held company owned by a private equity firm called Savers, Inc. This means that Savers does not have publicly traded stocks and is not listed on any public stock exchange.
What is a Publicly Traded Company?
A publicly traded company, also known as a public company, is a company that has issued shares of stock that are traded on a public stock exchange. This allows members of the general public to purchase shares of the company. Some examples of well-known publicly traded companies include Apple, Microsoft, Walmart, and Coca-Cola.
When a company ‘goes public’ through an initial public offering (IPO), shares of the company become available for purchase by public investors on a stock exchange like the New York Stock Exchange or NASDAQ. The shares trade freely based on supply and demand, and the share price goes up or down daily based on a number of factors related to the company’s perceived value and performance.
Public companies are required to follow regulations set by the Securities and Exchange Commission (SEC) as well as the stock exchange they are listed on. These regulations ensure public transparency about the company’s operations and finances. Public companies must file regular financial reports and disclosures that are audited and available to investors.
Advantages of Being a Public Company
There are several potential advantages to being a publicly traded company:
– Access to capital – Selling shares to the public provides a significant new source of capital funding for the company. This capital can be used to fund operations, invest in new technologies, make acquisitions, hire employees, etc.
– Liquidity for investors – Publicly traded shares are highly liquid, meaning they can be easily bought and sold on the stock exchange. This gives investors an easy way to liquidate their investment in the company.
– Prestige and publicity – Being publicly traded adds prestige and name recognition. Large public companies also tend to get more media coverage than private companies.
– Employee incentives – Many companies use stock options and bonuses to attract talented employees and incentivize performance. Being publicly traded makes it easier to offer employee stock compensation.
Disadvantages of Being a Public Company
However, there are also some potential downsides to being a public company:
– Regulatory requirements – Public companies face increased financial, reporting, and compliance requirements from regulators like the SEC. These can result in significant legal, accounting, and administrative costs.
– Transparency requirements – As a public company, much more information about the company’s finances, operations, compensation practices must be disclosed. This loss of privacy may put the company at a competitive disadvantage.
– Pressure to perform – Public companies face intense pressure to meet quarterly growth and profit forecasts to satisfy Wall Street. This short-term focus can hamper long-term strategic thinking.
– Loss of control – Founders and executives of a public company lose some degree of control. They become accountable to a broad base of shareholders and must contend with shareholder activism if investors are dissatisfied.
– Costs of going and staying public – The costs associated with the IPO process and ongoing regulatory compliance and reporting can be very high for a public company.
Savers Background
Savers is a privately held thrift store chain with over 300 locations across the United States and Canada. The company was founded in 1954 in San Francisco by William and Lois Yaffe under the name Value Village. In 1990, the company changed its name to Savers.
Today, Savers focuses on buying clothing, accessories, furniture, and household goods from charities and selling them in its thrift stores. The company’s mission is to provide an affordable shopping experience while supporting charitable organizations through purchasing the donated goods.
Savers is fully owned by Savers, Inc., a privately held company based in Bellevue, Washington. The controlling shareholder of Savers, Inc. is the private equity firm Leonard Green & Partners, L.P., which acquired the company in 2012. Under private equity ownership, Savers has expanded through acquisitions of regional thrift chains across North America.
Ownership History of Savers
Here is an overview of the ownership history of Savers:
– 1954: Founded as Value Village by William and Lois Yaffe in San Francisco
– 1990: Company changes name from Value Village to Savers
– 1996: Savers, Inc. formed to be parent company of Savers Thrift Stores
– 2001: Leonard Green & Partners acquires 42% stake in Savers
– 2008: Savers, Inc. buys back Leonard Green & Partners’ stake and becomes privately owned again
– 2010: Savers, Inc acquired by Berkshire Partners LLC, a Boston-based private equity firm
– 2012: Leonard Green & Partners and TPG Capital acquire Savers, Inc. in a $1.7 billion leveraged buyout
– Present: Savers, Inc. fully owned by Leonard Green & Partners after a buyout of TPG Capital’s stake
Throughout these ownership changes, Savers has remained a private company, owned by its parent Savers, Inc. It has never had an IPO or been publicly traded on any stock exchange.
Reasons Savers Remains Private
There are several likely reasons why Savers and its parent company have chosen to remain privately owned:
– Operational freedom – As a private company, Savers has more flexibility in its operations and strategy without needing to satisfy Wall Street expectations. The company can make long-term plans without worrying about hitting next quarter’s earnings targets.
– Avoid regulatory requirements – Staying private allows Savers to avoid the significant regulatory compliance and reporting requirements that come with being publicly traded. The costs of adhering to Sarbanes-Oxley and SEC regulations can be substantial.
– Maintain confidentiality – Savers can keep sensitive business information like financial data, growth strategies, supply chains etc. confidential as a private company. It doesn’t have to provide transparency into details that could potentially benefit competitors.
– No pressure on stock price – There is no public stock price reflecting performance expectations. The value of the company is set by its private equity owners instead of daily stock market moves.
– Control by owners – As a private company, Savers can be tightly controlled by a small group of shareholders like Leonard Green & Partners. There is no need to contend with the demands of a diverse shareholder base.
– Access to capital – Even as a private company, Savers has been able to raise substantial capital for growth from private equity firms over the years. It has not necessarily needed public markets for funding.
Could Savers Go Public in the Future?
While Savers shows no signs of pursuing an IPO at the moment, there are reasons why it could consider going public at some point in the future:
– Raise cash for growth – Going public can provide a large influx of capital for expansion and new investments. Savers may need to tap public markets for funding as it continues to pursue acquisitions and growth.
– Cashing out owners – Savers’ private equity backers like Leonard Green & Partners may wish to take the company public in order prepare for an exit and monetize their investment at some point. An IPO can provide liquidity.
– Compete for talent – Being publicly traded with liquid stock as part of compensation could help Savers compete for management and employee talent with public companies.
– Enhanced image – Listing on a major stock exchange like the NYSE could enhance Savers’ brand recognition, reputation, and perceived stability with vendors and customers.
– New acquisition currency – Stock in a public company can be readily used as acquisition currency. Savers may find it easier to pursue acquisitions of public thrift store chains if it were public.
However, the regulatory burdens and short-term focus of being public may dissuade Savers from an IPO. Much depends on how well it is able to fund growth as a private company and the future plans of its equity backers.
Comparable Public Thrift Store Companies
While Savers remains private, there are some notable publicly traded thrift store chains it competes with:
– Goodwill Industries – Goodwill is one of the largest nonprofit thrift store operators with over 3,300 locations in the US and Canada. Goodwill is a nonprofit with no stock, but it competes directly with Savers’ thrift operations.
– The Salvation Army – Similar to Goodwill, The Salvation Army is a nonprofit with thrift stores across the United States. It is not a publicly traded company.
– Ollie’s Bargain Outlet Holdings Inc (NASDAQ: OLLI) – Ollie’s is a publicly traded chain of over 450 discount retail stores across the Eastern U.S. With a focus on closeout merchandise, it competes with Savers for value-focused shoppers.
– TJX Companies (NYSE: TJX) – The parent company of discount chains like TJ Maxx, Marshall’s, and HomeGoods has elements of a thrift store model but also sells new apparel and home goods. Its stock is publicly traded on the NYSE.
While not direct competitors, these chains vie with Savers for a similar demographic and offer thrift or bargain shopping experiences. An IPO by Savers could add another pure-play thrift option to public markets.
Is Savers Stock Publicly Traded? Conclusion
In summary, Savers is currently a privately held company, fully owned by its parent corporation Savers, Inc. The controlling owner of Savers is the private equity group Leonard Green & Partners.
Savers does not have any publicly traded stock and is not listed on any public exchange. The company has remained private since its founding in order to maintain operational flexibility, avoid regulatory requirements, and preserve confidentiality.
While Savers could potentially go public someday to raise growth capital or provide liquidity to shareholders, it has not shown any immediate intentions to do so. For now, the company seems content operating outside the glare of public markets as a private enterprise able to focus on long-term goals under experienced private equity ownership. But an eventual Savers IPO could provide public investors with a new way to invest in the thrift store space.
