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Re: [OM] Ritz going under

Subject: Re: [OM] Ritz going under
From: Moose <olymoose@xxxxxxxxx>
Date: Mon, 23 Feb 2009 17:35:13 -0800
Ken Norton wrote:
> ... I'd say that $40 million USD is probably "getting off cheap" for Nikon 
> and Canon with Ritz.  It'll hurt, but I'm sure that six months ago they knew 
> that they were going to go default with one or more major stores and chose
> to make $400 million USD to lose $40 million.
>   

I just read the articel. The filing is Chapter 11, reorganization. I 
suspect they are hoping to dump their boat store business, get out of a 
fair number of leases to consolidate some photofinishing business 
locations, get various creditors to take some losses, then keep on going.

Reading between the lines, the photofinishing business has declined in 
profitability, and can't carry the other parts that are bleeding, but is 
still profitable on its own. Look for a majority of the retail and 
photofinishing locations to stay open while the mess behind them gets 
cleaned up a bit, then continue on. At least for a while.

Fuji is in much deeper than C&N, with a $175 investment in stock and $8 
million unsecured. Cute typo says they owe another $18 Billion to 
various creditors.

Moose
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