Red Envelope's 11-Day Collapse
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Scott Galloway shares the story of how his company Red Envelope collapsed during the 2008 financial crisis.
"I started Red Envelope which went public on the NASDAQ in 2002. Because I was young and dumb, I kept investing and got in a war with the board. I did a proxy fight, took over the board, and put more of my money in.
Then 2008 came and we had a longshoreman strike and a software malfunction at the warehouse where we sent 10,000 gifts to the wrong addresses over the holidays. Then a Wells Fargo analyst, who was like 14, decided the credit crisis was coming and pulled our line.
My stock went from $7 to zero in about 11 days. When the company declared Chapter 11, I lost pretty much everything."
Scott Galloway
Professor at NYU Stern School of Business, teaching brand strategy and digital marketing to MBA students. Entrepreneur who has founded multiple successful companies, including Red Envelope.
Co-host of the popular 'Pivot' podcast with Kara Swisher and host of 'The Prof G Pod with Scott Galloway'. Author of several books, including 'The Algebra of Wealth', and currently writing a book about masculinity.