Not what I'm saying. Many commented at the time of CC's bankruptcy that it would be good for BBY in that there would be a noticeable bump in sales: that didn't materialize. I don't currently follow BBY but their recent improvement may be related to a better strategy against AMZN. All I am saying is that despite ZQK bankruptcy, we will likely see no bump in sales for PSUN. Keep in mind that these stores will have going out of business sales that will siphon sales from PSUN.
so you are saying that if circuit city existed today as it was then, they would not take any sales from best buy? where then do the circuit city shoppers buy their goods? Your logic is flawed in this instance.
Circuit City filed 7 years ago. There was no demonstrable benefit to BBY's sales at that time. I don't think what is going on now can be cause and effect to Circuit City. But please don't take my word for it. Let's see what happens when PacSun reports and see who is more credible.
Best Buy is trading near five year highs. You discredit yourself every time you post here.
I'm not so sure that is sufficient proof. ZQK will have going out of business sales which will likely be a negative for neighboring PacSun stores. Investors also thought that the Circuit City bankruptcy would help Best Buy: it didn't. We'll see if you're right when they report results.
Read: "2 stores at Pismo Beach outlets are set to close"
"DC Shoes’ closure is a result of the U.S. division of Quicksilver, which owns DC Shoes, filing for Chapter 11 bankruptcy protection..."
"Izod, located in the shopping center between PacSun and Zumiez, is closing because of a corporate decision..."
I wonder how many more malls Quiksilver is closing where it competes directly with PacSun.
1. American Apparel does not have valuable land to sell like PacSun.
2. American Apparel makes clothes in America, far more expensive than China or elsewhere. Even Levi's could not continue doing that.
3. American Apparel's annual sales are less than PacSun. ($568 mil vs.$806 mil)
4. American Apparel's debt was three times PacSun. ($278 mil vs. $101 mil).
5. American Apparel operates around the world and faces currency risks. PacSun only operates in America.
6. American Apparel's CEO is suing the company for firing him. He continually had harassment suits against him.
It's amazing American Apparel lasted as long as it did. I can long at PacSun and see how it can become profitable, but can't say the same thing for American Apparel, even after bankruptcy, as long as it makes the clothes in the United States.
I posted earlier that under the last term loan, Golden Gate was given rights to buy almost 20% of the company at $1.75 a share. The public press release (cut and pasted in my last post) said that was a 33% premium over the prior day's close. The stock opened at $1.75 the next day. If you look at Yahoo finance history, the stock had a high in every month from Dec 2011 to Dec 2014 above $1.75. Apparently this info, that any of you can easily look up is "deceptive" says the poster who just told us the company may be headed for bankruptcy and also that they did not know substantial real estate was for sale. That poster's comments do not surprise me, as this stock has traded since earnings like retail shorts have no clue what is going on.
Who is being deceptive? I cut and pasted from the public press release the last time they raised money through a term loan. The release said the $1.75 rights given to Golden Gate were at a 33% premium to the close the day before. Guess what the stock did after that? Hint: it spent much time above $1.75. Or is the other poster being deceptive by telling you they are selling real estate, which is public knowledge? What is it worth? The company said substantial eight figures. The only deception here is fear-mongering by throwing around the word "Bankruptcy" when you just admitted you didn't know the real estate scoop. That sounds like pretty important information to contemplate for someone who suggested bankruptcy was in the cards. The only thing in the cards, is it sounds like you haven't done enough research.
I am referring to the last loan-related dilution, and not the common day-to-day dilution from stock options to executives.
Read the Dec 7, 2011 press release:
"In addition to interest and fees payable on the loan, the Company issued convertible preferred stock to an affiliate of Golden Gate which gives it the right to purchase up to 19.9% of the Company's common stock (16.7% on a fully-diluted basis) at an exercise price of $1.75, a 33% premium over the closing price of the Company's common stock on December 6, 2011."
That's my favorite part! Almost 5 million shares short as of 9/15. Shorts crying bankruptcy when the company is attempting major real estate sales in Kansas and a hot LA area commercial market. And now they're talking about dilution, oblivious that the last time the company negotiated that, it was at a premium.
If you were here years ago, you'd know the one major loan that resulted in 20% dilution was the right to buy stock at a PREMIUM to the price the stock was trading at prior to the announcement. They are in much better sales shape now than then. If you were here over the past few weeks, you know that they are selling real estate that will take them close to wiping out there debt. So good luck with that significant dilution idea - Gary's proven in the past that he's a better negotiator than that.