GML Facing Bankruptcy
Ranell carefully observed his team as they entered the secure meeting room, trying to gauge their mood.
Outside, they’d been subjected to a thorough search of their belongings. No cell phones, smart watches, or recording devices of any kind were allowed inside. It was highly unusual, and Ranell could tell from their tightly drawn expressions that these men were worried about what he would say next. It couldn’t be helped. If the shareholders of Global Multimodal Logistics caught wind of what their Chief Logistics Officer was discussing at this meeting, they would dump their shares, and GML would be bankrupt by tomorrow morning.
Only his closest team members were in attendance. Jim Davis, his director of Operations, was first to arrive. He was followed closely by Ken Stass from Planning, and Mitch Anderson, his director of Logistics and Operational Support. The Managing Directors for Africa, North and South America, Europe, and Asia Pacific trickled in as they passed through security. Last to arrive was Dr. Dominique Larbonne, his Senior Advisor for Strategy and Growth. Counting Ranell, just ten of his most trusted coworkers were in the meeting when the doors were closed and locked behind them.
“Nobody’s getting fired.” Ranell opened the discussion without preamble. He said it to address the most likely question on everyone's mind, and also to help cut a little of the tension that now filled the room like the presence of an invisible, malevolent being.
Ranell saw facial expressions shift subtly from fearful, to focused. They're worried about their jobs, he thought glumly. They should be. Despite his announcement, the drawn expressions of exhaustion and strain did little to cut the tension. Ranell hoped he could concentrate that energy on the task at hand now.
“What’s up, Chief?” Asked Mitch Anderson, “Why’d you call us in?”
Bad news doesn’t get better with time. Ranell took a deep breath and let it out slowly. “I’ve been crunching the numbers with Dominique all night,” Ranell glanced at Larbonne, who wore a sad, knowing look, “and GML is done. We need to talk about bankruptcy.”
“What?” Anderson exclaimed, incredulous. “You just said you’re not firing anybody.”
“I’m not…” Ranell began, but Anderson cut him off.
“It sounds like you’re firing everybody. All of us!”
“That’s enough!” Ranell was one of those men who seldom raised his voice, so in the rare instance when his temper got the better of him, it tended to unbalance those who were the focus of his wrath. Ranell’s outstretched finger quivered with barely suppressed emotion as he pointed it accusingly at Anderson. The younger man slumped back in his chair, noticeably crestfallen.
"The fact is that GML has 6,351 employees. Let that sink in a moment." Ranell let the statement linger unanswered more for a chance to catch his breath. It came now in short, shallow gasps, and he paused just to breathe, rather than for the dramatic effect. "These are not just numbers, gentlemen. These are people. When GML goes under, these people will be cast out into a job market that's got about a 20% unemployment rate globally right now. That's six thousand families that will lose insurance, healthcare, and their homes. They might not even have enough to eat."
Ranell forced the board members to meet his intense gaze, as if daring them to defy him. “I’m not going to let that happen. We’re not going to let that happen.” He began wrapping his finger on the conference room table, not in an angry or threatening manner, but in a way that emphasized the decisions he’d made and the steel resolve behind them. “First, we will continue to conduct business as usual without resorting to mass layoffs.”
“Second, we will change our mindset away from maximizing profit for our shareholders.” There were audible gasps from the board members. Ranell was suggesting a violation of their fiducial responsibilities. He was suggesting something that was quite possibly illegal. “If any of you have a problem with that, there’s the door. You can leave right now. But I will deny I ever said it.”
A dread silence spread throughout the chamber. Finally, Jim Davis spoke up, asking the question on everyone's mind. “What are you proposing, Josef?”
Ranell’s finger came down on the table once again. “I am proposing that we buy time, Jim. Look, there’s no way GML is going to weather this storm. As far as I’m concerned, the money is already lost. The best thing we can do right now is to hold on for as long as we can for the sake of our employees.”
Ken Stass began shaking his head. He shook his head and stared at the table in front of him as if willing for some solution to appear in the fine grain of the mahogany. "I don’t get it, Josef. I don’t get it.”
“What don’t you get, Ken?”
“GML has annual revenues of almost nine billion. How is it that we’re facing bankruptcy? This can’t be the end.”
Ranell deflated like a balloon. He looked listlessly at the window as he tried to compose his thoughts.
Larbonne spoke up first. “Oui, it is complicated. But suffice to say that there is a tricky balancing act between revenues and expenses."
"Cut the crap, Dominique. We all know it's the damn airships,” Anderson snarled. “We told him they were a stupid idea. We told him, and he bought them anyway.”
Premise of this novel: Before the Greater Depression struck, the CEO of GML bet that modern airships would return to the skies when the profits realized from their operation outweighed the cost of building them.
Choose Option 1: Learn more about modern airships.
Choose Option 2: Continue with the Story.