Borders Group Inc. (fka BGPIQ)

[Windfall Magic]

Store liquidation and inventory reduction. Remember I believe they own most of the properties. Then I would see an renewed marketing approach, and perhaps focused program development with in the remaining stores.

As an ex retail exec and one who has walked though BK's before. This is fairly typical of how the first several weeks or months should go. If the plan goes according to the proposal I would expect Boarder to ready to exit some time either just before Christmas or if were me, I would hold until the first of next year.

Remember the only reason they had to file was to keep the creditors from canceling shipments. Once in BK the DIP can control the purse as to what gets paid. I am not sure if they own all 200 stores that will close but they have around 650-750k in inventory per location and that alone should improve cash flow. Plus those store were under performing dragging the gm and the nm down significantly.
If they own the building or own the leases they can get around .75 cents on the dollar for the properties if not more. Each property should generate a minimum of $2m depending on location. So even if the only own 25% of the locations and the rest they own the leases. this will greatly enhance cashflow. The real key is how do they fix the erosion of revenue due to online competitors. With out sitting in the war room I don't know the answer. I have a few ideas but no data to back it up.