They're going to shrink the business significantly.
And use that shrinkage to raise the capital they need, apparently. The question is whether or not, as they claim, that the "right-sized" business will actually be profitable. I don't trust these guys, or McGreevey's, or McGoo's (or whatever his name is) competence, that he actually knows what he is doing.
The charges and write downs, along with expected operating losses, are going to eliminate FULLY HALF of their book value....or more. And they're still going to have a lot of debt.
Is there really a "core business" that is profitable, as they state? I'm a skeptic. I personally think this incompetent CEO is going to fall on his face, and the company will file bankruptcy in Jan or Feb of 2014.
If we climb to $1.15-1.35 or higher, I'll start reshorting. In the meantime, it's hard to say what the stock is going to do. If they have term sheets from lenders, they probably will be able to generate the liquidity they need, in the short term, and the stock could trade between 40-85 cents for now, would be my guess.
What a shame "they" had to make a mess of this nice little "Proudly Made in the USA" company. I used to like seeing those tags on their belt rack in Walmart, knowing the product came from Yoakum, one of the absolutely lowest cost place to do leather products in the USA. But they had to go to China, cuz that's what all the kool kidz do? Just a shame, and I can't believe it was inevitable. At least it should not have been.
Well, am not an expert in this biz, but know that it looked like a decent enough "value" in August '06 to buy some @ 10.25. Yes, know it's a tough world out there, but when you take a look at what happened to this company, or FBN, one has to think there could have been a better job done of managing these businesses along the way, instead of having both of them end up on the verge of bankruptcy. Without being glib...It's hard to imagine anyone could have done much worse! Also strange: How upbeat the CEO sounded not that long ago, and how out-of-touch that optimism was.