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Originally Posted by doreenjoy
My understanding of BGI is that most of the quotas are regional, not store-specific, but I could have bad information on that as I heard it through the grapevine.
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You may well be right, but same difference. Regions are made up of stores in an area, and you can't know how the region did without knowing about the stores that make it up.
I believe the underlying data is there. What I question is the use made of it.
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Both companies were already circling the drain. This is more like a Hail Mary pass IMO.
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Agreed. I suspect there were people taking bets on when Borders would go belly up before this bit of news.
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If the money-men don't strip every dollar they can from the company, then they might have a chance after the merger. As it is now, they don't have a prayer.
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Well, if they raise the funds needed to try the takeover, it's a toss up. They'll certainly want to make it back, and the question will be how. I assume they'll want to try to boost the stock price then cash out, but in the current market, I wonder who would buy if they succeed? Given the underlying structural problems in the industry, I can't see even a merged, trimmed down, lower cost entity as an attractive proposition. It will have a better chance of surviving, but prospective buyers will want growth.
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Dennis