GREY:GBVFF - Post by User
Post by
DTM5on Feb 14, 2014 1:52pm
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Post# 22211307
Death Spiral?
Death Spiral?Looking bad - losing 2 million per quarter, only 5 million of sales and 2.5 million dollars of gross profit. Then over 5 million of expenses!!!
Lets see - 5 million of expenses over 53 stores = 94,000 per store expenses per quarter / $377,358 per year per store. Thats alot of expenses for retail.
They'd have to be selling on average 1 million per storre to make this work. They are probably less than half that.
no cash in the bank, no president / CEO, little borrowing power. And they need cash - lots of it - to turn this around.
IMHO, its going bankrupt or is going to be sold for a VERY low price to a larget company. Perhaps becasue they are quebec based the PQ gov't will give them some crazy financing deal to save them??? Unlikely - But possible.