all unprofitable stores one early morning. Guards and pink slips and the inventory shipped to profitable outlets, ASAP. Walk away from those leases as well. If they do not the theft and out right choas of those( some) stores will hasten their demise. They are going to have to get real tough soon, just a hunch, but stay tuned.
Good call. Your idea also sounds a lot like the plans management already has in place to close stores in "non-core" markets.
They'll get profit up to 1% of sales (or more) for the remaining stores. 1% of last year's sales would be EPS of 75 cents per share. Value, even if they continue to close stores every year, would be at least 3-5 times that 75 cent figure.
It may be better to sell or fix the unprofitable stores instead of closing them. If too many stores are closed, the severance and other closing costs could eat up most of the remaining shareholder equity. If there is no equity, the creditors can argue that the existing shares should be declared worthless, regardless of whether the continuing operations are profitable.