When we first started tracking C-suite transitions on InsideArbitrage, little did I realize that instead of being the exception, sudden departures would be relatively common. I was surprised that we had 11 sudden executive departures in each of the two prior weeks but the frequency went up even more last week with 14 executives suddenly calling it quits. In one instance, the company laid off 80% of its workforce, including the CFO.
This week we decided to focus on the casino and online gambling operator Bally’s Corporation (BALY), not only because the CFO decided to leave just a little over a year after taking the role but also because the CEO left at the end of March. When I look at the company, two words come to mind: capital mismanagement. A misguided stock buyback program and a string of acquisitions left the company with a highly leveraged balance sheet.