Post by
FullSteamAhead on Mar 18, 2009 10:31pm
What a mess !
Lakeside is in real trouble and unless the market for pipe turns around before the end of the year, I think they will be out of business.
Their balance sheet is a disaster waiting to explode on them, with debt in excess of $27 million and no cash. Given the conditions in the credit market, it is highly unlikely they can get financing to continue as a going concern.
The company is presently operating on one shift having laid off a substantial number of its workers, and there's talks going on to reduce that one shift down to a four day week. Week long shutdowns are imminent as the company's order book gets lighter.
I simple don't see how they can continue much longer without financing or a quick turnaround in their core markets. The latter is unlikely and the former near impossible so it's not difficult to see where this is headed.
Expect more layoffs and shutdowns in order to preserve what little is left of this franchise.
Comment by
carlx on Mar 18, 2009 11:20pm
"with debt in excess of $27 million and no cash"Interesting....May I request you to kindly show me where on their financials, or other news releases, do they confirm having "in excess of $27 million and no cash".Thanks in anticipation.carlx
Comment by
Reduce84 on Apr 09, 2009 3:34pm
They are actuallky debt free... the loans are backed by inventory.. loan is for cash flow. Great company.. read today in SBB that steel prices flatteningout as destocking taking place.