Tuesday, October 18, 2011

Syms Store Closings.

Here is something that doesn't come as a surprise: Syms has made the decision to close 4 of it's Filene's stores. This has been something that I have been expecting, especially when looking at how the company's leases are expiring (from the 10K) and their mounting losses.

This will likely impair earnings, but, should be largely a non-cash charge... Anybody remember the "bargain purchase gain" that helped to make them profitable? Well, I am guessing that this will in part come out of that, and a decent bit from intangibles...

The inventory being liquidated should help out the cash position a bit, which, if the most recent quarterly is any indication of, will be nice, since the company doesn't have any individual assets left for sale... Rather, the whole of the company is supposedly for sale.

It is a crying shame that the company has gotten to this point... There are a plethora of ways in which to unlock value... Most of which, involve the company ceasing to operate as we presently know them.

EDIT: Add another 2 stores to that figure...

Disclosure: Long Syms. This is not advice of any kind. Always do a ton of your own research in regard to anything that I say, do, write, or so much as even think about.

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