Distressed investor Gores Group arrives to bid for more than half of what's left of bankrupt...

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7footMoose Comments (2242)
 
If Borders business model is broken, and it would appear so from the bankruptcy filing and if the economy is about to plunge into the abyss again and it would appear to be so from recent financial press coverage what then does Gores seen of value in these assets?
2 Jun 2011, 06:59 AM Reply Like

kmi Comments (3844)
 
Leases are valuable, is my initial thought, but in any event overhead in a bankrupt entity decreases drastically, if they have a plan to reposition, which they likely do, they can make money, which I bet they will.
2 Jun 2011, 09:00 AM Reply Like

7footMoose Comments (2242)
 
In general. I agree with you but if the economy is "sooo" bad then the leases have less value because of excess mall space and if the business model, selling books, is flawed then what do they have to fall back on. I have seen this sort of thing work before but it was in a very different economy.
2 Jun 2011, 09:12 AM Reply Like

kmi Comments (3844)
 
Well it's bidding, and it isn't bidding for everything, so we don't what the cost-benefit is.

I'd guess it would depend on what the margins are to make Borders profitable, or hell if it was me I'd try and resell the leases to retailers who -can- succeed in this economy, like Family Dollar....
2 Jun 2011, 09:21 AM Reply Like