"Even if you assumed that the inventory, which comprises much of the book value, is overvalued and should be marked down by 20% or more, the $14 price offered still seems too low."
Anyone that's ever visited one of the stores can tell you that's a pretty safe assumption. Management knows it to be the case. They've been overstating inventory values and failing to apply depreciation for years.
When 50% of your company is owned by four institutions, you'd think you could pick up a phone rather than look the fool.