Daily News

View All News

Select Drops S&P Rating after Downgrade

October 31 2011

Koosharem Corp., which does business as Select Staffing, had its corporate credit rating lowered to a “CC” rating from a “CCC-“ rating by Standard & Poor’s Ratings Services on Oct. 21 with a judgment against the company this summer cited as one reason for the downgrade. However, the ratings firm withdrew all ratings on Koosharem on Oct. 27 at the request of Koosharem.

Standard & Poor’s ratings run from “AAA,” the highest rating, to a “D” rating, the lowest.

The ratings firm reported that factors in its decision to lower the rating included: the judgment against the company in favor of the California State Fund and an opinion by the company’s auditor, PricewaterhouseCoopers LLP, raising doubt about the firm’s ability to continue as a going concern.

While the company is negotiating a settlement with the California State Fund, the firm does not appear to have sufficient liquidity to make the payment and still fund operations, according to Standard & Poor’s.

The ratings firm also reported that Koosharem faces pricing pressure from larger firms in the staffing industry and that having roughly 40 percent of its revenue coming from California leaves the firm vulnerable to shifts in the local economy and high workers’ comp costs.

“The withdrawal of Koosharem from the S&P rating system bears no correlation to the status of our business or our operating performance, which is better than ever,” according to a statement from Select Staffing. “As the company continues an ongoing constructive dialogue with our capital partners, it has been our collective determination that the ongoing expense of a formal rating is no longer necessary, thus we decided to terminate S&P ratings services.”

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.
Security text:*

Karen 07/23/2012 03:12 pm

Dear Ian and Laurie:
I think that the bottom line is that regardless of what people are saying from within Koosharem and Select, the real questions lie with how you treat your employees with Select Employment services!
Your company's business ethics are shameful and reprehensible. You could not truly and ethically represent an employee if it meant saving your lives. You seem to be unable to help anybody who has a complaint, nor do you want to, the people who answer your phones beyond the front-end receptionists are all Indian who cannot speak english and in the end I have never seen such bad management in my life! Neighborhood lemonade stands do better at managing!
It's no wonder your credit rating is in the toilet. Oh excuse me, doesn't exist. Apparently there is a reason why Standard and Poor have such little faith in your organization, and it has nothing to do with anything that they wrote above.
Good luck, and I'm thinking that perhaps there will soon be yet another suit brought against you. THIS one won't be making you the victim.
Have a nice day.


Previous Select Corporate

Mark Elfive 07/02/2012 04:36 pm

I worked at Select Corporate for over 5 years, and in 2 different departments. Unfortunately, much of what the people below are saying is correct. As a corporate employee, I left on my own with a good track record. However, the reason I left was because I simply could not, with a clear conscience, work at Select any longer. Steve is a hypocrite who hides behind his religion. What he does not realize is that he is seriously tarnishing to good image of the LDS church. He brandishes his qualifications as a "good husband and father, in good standing with his church". He uses quotes from his church's leaders in corporate meetings and conferences, lauding his beliefs yet all the while his business practices are shady at best. There is much evidence of many questionable on-goings at corporate. We are all aware of Steve's habit of "laying off" hundreds of corporate employees, especially during Nov - Dec, in order to show a positive profit at end of year for the bankers who provide his loans. He has said it, and it is common knowledge to all corporate employees. That is why so many leave on their own. What they see scares them. Steve *thinks* he is above the line business-wise. Everyone else knows that he is practically OVER that line. At the very least he is a narcissistic man who is money hungry and uses his corporate employees like he does his cattle - to be sacrificed and slaughtered. At the very worst he is...well, let's face it. You can only juggle these things for so long before all the balls drop. Every other staffing company in the state of California are aware of the bad dealings of Select. All corporate employees are aware as well. Nothing is really hidden. Everyone knows that what Steve wants, Steve gets - at any cost. Another corporate jet? Another company to rip apart and dissolve.. Just because he can technically get away with much of what he is doing, does not mean that morally he should. But then this is why I left. As a member of the LDS church, I cannot, in good conscience, work for a morally corrupt man like Steve. He pretends he is doing so much good. Once his delusions fall from his eyes, he will see what a Dorian Gray he really is. And his company is his painting. I won't go into all the other stuff I know. But the fact that I do know, and I know that the execs know, is enough for me to say with certainty that there is no difference between Select and it's execs, and all the other corporate CEO/Execs with other companies who fatten their own wallets at the complete and utter expense of their employees, and a complete and total manipulation of the laws of this land, and this state. Steve, open your eyes. Be like Matthew - do what you do, and do it righteously and do not become corrupt. Don't seek the worldly things. If you really love God, then take care of those corporate employees who are loyal, and don't be the Rich man trying to get his camel through the eye of the needle.


SUTA dumping - yes it's illegal

Michael 01/30/2012 03:44 pm

Even internal employees of Select knew this was how they did business. This little shell game did nothing more than line the pockets of Steve's family. I am sure he saved enough to hire a really good lawyer. And the holiday furlough was actually a systemic 5 to 10% reduction in staff each year at Thanksgiving. This was not simply an unpaid furlough - employees were terminated, period. The only family the Select execs care about is their own. Someone said it earlier "Time to pay the piper".


Latest News

Concerned Party 11/15/2011 11:23 pm

Google State Fund v. Koosharem. They have all been charged for racketeering under the civil rico act, even Laurie Maxwell. They are in big trouble, and some will be going to prison. They better know someone in the attorney general's office. Cut a deal asap. It's their only chance. Yikes!


Ian Kindberg 11/14/2011 08:13 pm

Dear Peter, it’s unfortunate that you’re so troubled by all this … maybe I can help.

Rather than hiding it, we welcome anyone to take a look at the Santa Barbara Court case you have referenced … it seems you may not have read it or don’t understand it. Select was the victim in this case, not the perpetrator. A former employee embezzled over $50,000 from us. Of course we eventually discovered the crime and reported it to the local police … would you not have done the same?

You’ve also mentioned an annual furlough. Along with many employers across the nation during the worst of the 2009 recession, we were aggressive about reducing staff during the holiday weeks. However, I’ve worked at Select since 1995, and can tell you there is no “annual furlough.” We do ask for reduced staff from our corporate and branch offices during the holiday weeks because most of our clients are either off or are not working a full schedule. Since we staff to meet the needs of our clients, it makes sense to adjust. But in some cases our teams are busy during those weeks and unable to reduce, which is fine. In fact, many of our colleagues appreciate the opportunity to be with their families during the holidays and actually volunteer for it. It’s interesting that you mention it, though … you sound like a disgruntled former employee.

Regarding worker’s compensation, Select has won four of the industry’s top accolades for Workers’ Comp including 2009 Risk Manager of the Year by Business Insurance Magazine and RIMS. While of course the State Fund verdict was a huge disappointment, we believe it will be won on appeal. As the company stated in its press release, Select paid nearly $6M in premium for $80M of payroll. For anyone who knows Workers’ Comp, that is a full and fair price, and is why the company believes so firmly in its case.

Hopefully this will help clear a few things up.


Cowards?

Peter 11/10/2011 12:55 pm

The only coward here is the one who removed my comment detailing the embezzlement scandal Select Staffing has tried so hard to keep under wraps. You remember, this one right here?

Santa Barbara Court Case: 1334683

Reported: 07/22/2010 by Crime Reporter: 7210
Crime Report #: 5138936
Source: Santa Barbara PD

F PC487(B)(3) Grand Theft
F PC470(A) Forgery
PC12022.6(A)( Special Allegation - Excessive Loss Over $50,000

"put food on their family tables"
I laughed outloud when I read that.
Tell me: How does a family put food on their tables when they are on furlough? You know, the four weeks you ask every one of your colleagues to go home without any pay?

Or what if they're hurt and can't work? Oh that's right, you tried to skirt workers compensation too. State of CA Insurance Fund's victorious $50 MILLION JUDGMENT against Select can be found here (good luck with that appeal): http://pacbiztimes.com/2011/09/02/select-plans-appeal-of-50m-judgment/

Cowards shy away from the truth. You don't need my name to know the truth about this disgusting company.



Laurie Maxwell 11/09/2011 07:30 pm

My goodness, what negativity -- and four out of the five of you didn't even have the nerve to put your real names -- much easier to cast aspersions from the cowardly shadows of anonymity, isn't it?
Select has been instrumental in changing people's lives by assigning them meaningful work -- we cut hundreds of thousands of W-2's each year for people who might not have otherwise put food on their family dinner tables.
I have personally worked for the company for 15 years and have never regretted the decision for a moment.


Confidential 11/02/2011 01:18 pm

Company does not care about internal employees- they are just like every other shady staffing company out there. You know the ones- they do whatever they can to get the business and hope that the ones they are doing business with are not educated enough to figure out the game. The communication "down flow" in this organization is also lacking. I was in upper management in this company before deciding to walk away. Too many politics and God forbid you have a brain and try to figure out the policies and procedures. Just "do as they say" and you will be fine. That should be their new mantra.