1 week Ago By David Lyons
BBX Capital, a longtime diversified Fort Lauderdale firm headed by veteran entrepreneur Alan Levan, said Tuesday it is embarking on a campaign to restructure its operations, reduce staff and deregister its stock in a bid to cope as the company foresees the onset of a national recession.“We just are concerned about what we’re seeing on the national economy and what’s going on in Washington between tariffs, between volatility and high interest rates,” Levan, the chairman and CEO, told the South Florida Sun Sentinel in a telephone interview. “Consumer confidence is getting lower and lower and we’re in businesses that rely on consumers.
”“You know that in markets like this we have tended to react very early, much earlier than others,” he added. “Sometimes we’re not correct but sometimes we are very correct. We did this in the ’70s during the recession — we cold-turkey stopped raising money when the market collapsed in 1974.
”“We did it with Bank Atlantic in 2007,” he said. “We stopped lending. Everybody thought we were crazy, and a year later the market collapsed.
”From headquarters in the city’s most upscale mixed-use building, The Main Las Olas, BBX Capital operates subsidiaries ranging from real estate development to logistics to retail confections to door manufacturing and wholesaling. Levan himself is a longtime Broward County business and community leader, overseeing the former BankAtlantic, and then BBX, which has controlled and/or invested in a variety of ventures over the years in South and Central Florida, including Bluegreen, a national timeshare operation that was sold several years ago.More than three years ago, Levan contributed millions of his own money to help form the Alan B.
Levan | NSU Broward Center of Innovation at Nova Southeastern University in Davie, where entrepreneurs and early-stage companies are based as they seek to stabilize themselves for future growth. The center is a public-private partnership with Broward County. The actions by BBX have no bearing on the center.
But for the companies under the BBX umbrella, Levan said Tuesday, now is the time for examination and recalibration while the company has the cash on hand — an amount that stands at $87.5 million, according to the company’s annual report filed with the Securities and Exchange Commission.“We are looking at every one of our businesses,” he said.
“We’re protecting our cash, and if we are right we will have lots of cash for future investment in a down market.”Related ArticlesOpening dates set for new Publix stores in Margate, West Boca and Palm Beach GardensUS expected a big travel year, but overseas visitors — angered by Trump — are heading elsewhereAs China and the US spar, countries brainstorm over how to cope with the trade warTrump says high tariffs may have prevented the Great Depression. History says different5 top mistakes to avoid during a market sell-offStock joins the slideThe company’s shares, which reached a 52-week high of $9.
24, plunged by up to 30% in trading Tuesday — to a yearlong low of $4.35 amid another tumultuous multi-day stretch on Wall Street driven by President Donald Trump’s sweeping tariff campaign against multiple countries.Levan said that after the company’s shares are deregistered, investors will still be able to trade the stock over the counter.
“For us at this point in time, in terms of saving expenses, it doesn’t make any sense for us to be an SEC-registered company,” he said.If the market conditions change “and we see viable opportunities, we may relist,” he said. “Nobody is losing any stock.
”“I talked to a number of investors today who are very supportive of what we’re doing,” he added.The company issued a news release early Tuesday outlining its plans, which are expected to take anywhere from two to five years to execute. Levan said no financial advisers have been retained at this point.
Levan declined to discuss Trump’s economic policies or those of his predecessor, former President Joe Biden.“I’m trying to stay out of politics, so I’m not going to talk about our current or last president,” he said. “Who created the problem, I’m not going to jump into that.
”Trump’s latest round of tariffs are poised to go into effect. Here’s what we knowEverything under the microscopeLevan said that development projects underway through its Altman Companies subsidiary will continue. But projects that have not started likely will be placed on hold.
“We already have the investors and we have financing,” he said. “Anything else we’re going to take a pause on.”As for the other enterprises?“We’re going to look under every rock for expense savings and analyze every business,” he said.
Besides the Altman firms, the businesses include BBX Sweet Holdings, which include IT’SUGAR and Hoffman’s Chocolates, and Renin, the door manufacturer and wholesaler whose products are made in Canada, distributed in the U.S. and subject to Trump’s newly installed tariffs.
The doors are sold through the large retail chains Lowe’s, Home Depot and Menards, a retailer in the Midwest.Among the options: “Staying the course, selling, merging or closing.”Levan said he doesn’t know how many people would lose their jobs, adding more time is needed to undertake an analysis.
But BBX does intend to reduce the size of its board of directors from 12 to seven.Besides Levan, the remaining board members will include John E. Abdo, Jarett S.
Levan, Seth M. Wise and independent directors Steven M. Coldren, Willis N.
Holcombe and Neil Sterling, according to the Tuesday statement..“We are assuming a recession sometime down the road, and we are assuming a difficult economic environment over the next couple of years,” Levan said.
“I’d rather be early than sorry.”‘.
