Quote:
Originally Posted by Rada
Not sure where DCG would have much if any negative cash flow with Serrota shut down. Might actually be losing less money now.
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As a total company, maybe not. But someone owns the land, buildings, equipment, and whatever financial obligations underpin it - taxes, interest, maintenance, etc. So someone is holding a negative cash-flow asset even if shuttered. Businesses don't like negative cash-flow assets on the books unless they hold something positive for the future. No real market presence, a loyal customer base to Ben Serotta ... I don't see a lot of immediate upside for DCG.
Could be wrong - as I said if they are flush with cash, then they have the physical infrastructure to build frames (and other components) out of nothing quickly. Just need to find customers.