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• Case | HBS Case Collection | November 2019 (Revised February 2020)

  Constellation Brands' Investment in Canopy Growth: Aiming High

  Stuart C. Gilson and Sarah L. Abbott

  In 2017, Constellation Brands, the U.S.-based beverage company, acquired a 9.9% equity interest in the Canadian marijuana company, Canopy Growth. In 2018, Constellation announced a subsequent investment in Canopy—taking its ownership interest to 37%. However, Canopy’s performance had been volatile and net losses had increased since the investment. In an effort to get into the cannabis market early, had Constellation Brands been too early?

  Keywords: Equity Investment; marijuana; growth investing; new market development; beverage industry; Equity; Investment; Strategy; Consulting Industry; Food and Beverage Industry; Canada; United States;

  Citation:

  Gilson, Stuart C., and Sarah L. Abbott. "Constellation Brands' Investment in Canopy Growth: Aiming High." Harvard Business School Case 220-044, November 2019. (Revised February 2020.)  View Details

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• Case | HBS Case Collection | April 2015 (Revised January 2020)

  Bankruptcy in the City of Detroit

  Stuart Gilson, Kristin Mugford and Annelena Lobb

  The June 2013 bankruptcy of Detroit, Michigan, was, at the time, the largest municipal bankruptcy in American history. Detroit had struggled for years with a weakening tax base, high unemployment, a heavy debt load, and increasing retiree costs. These financial strains led to cuts in basic public services, declines in population, and significant urban blight. The State of Michigan appointed an emergency manager, Kevyn Orr, to lead the city though the restructuring process. In March 2014, Orr and his team put forth a restructuring plan to the city's creditors that provided for needed reinvestment in city services, but low recoveries for unsecured creditors. The city's plan also proposed that the Detroit Art Collection be transferred to a trust funded by philanthropists, with the proceeds accruing solely to retirees rather than to all creditors. Orr and his team must now find consensus on a plan that meets the needs of Detroit and is acceptable to its creditors.

  Keywords: Chapter 9; chapter 11; Restructuring; Financial Liquidity; Insolvency and Bankruptcy; City; Government Administration; Public Sector; Financial Crisis; Financial Management; Failure; Labor Unions; Urban Development; Public Administration Industry; Michigan; Detroit;

  Citation:

  Gilson, Stuart, Kristin Mugford, and Annelena Lobb. "Bankruptcy in the City of Detroit." Harvard Business School Case 215-070, April 2015. (Revised January 2020.)  View Details

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• Case | HBS Case Collection | January 2011 (Revised July 2019)

  Houghton Mifflin Harcourt

  Stuart C. Gilson and Sarah L. Abbott

  One of the leading publishers of textbooks and other educational materials for the U.S. K-12 educational instruction market has suffered a dramatic decline in sales and profits in the wake of the 2008-2009 financial market crisis and economic recession, and is now overburdened with debt. To regain its competitiveness the company has to significantly reduce its debt, by billions of dollars. Company management is trying to decide which of several options is best for achieving this goal, including filing for Chapter 11 bankruptcy, restructuring its debt out-of-court, or filing a “pre-packaged” Chapter 11 bankruptcy.

  Keywords: Restructuring; Capital Structure; Financial Crisis; Insolvency and Bankruptcy; Decision Choices and Conditions; Publishing Industry; Massachusetts;

  Citation:

  Gilson, Stuart C., and Sarah L. Abbott. "Houghton Mifflin Harcourt." Harvard Business School Case 211-027, January 2011. (Revised July 2019.)  View Details

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