A short post today, but sweet. Some stories will be fun to watch this year. At the bottom of a list of companies that may not survive 2009 is consulting firm BearingPoint.
BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle – or devise its own exit strategy.
So I wonder what their consultants are doing now. Telling others how to manage? Hmmm… And government contracts are a major part of their business? Double hmmm… in more ways than one. A failing company providing guidance to a failing bloated bureaucracy which is providing funds to failing companies.