Bakers sells stores to Aldo in major restructure
30/08/2012
On June 30, it had negative working capital of $20.3 million and a shareholders’ deficit of $19.9 million, according to a filing to the US Securities and Exchange Commission.
Around 52 stores will be sold to Aldo for $6.4 million, with another 20 to 25 underperforming stores closed this autumn.
Bakers chief executive Peter Edison said in a statement: “We expect to generate significant short-term cash and savings over the next 12 months that will enable us to reduce outstanding debt and improve cashflow. Upon completion, we will operate a more productive chain of approximately 145 stores with a team that is passionate and focused on our Bakers brand and possess increased financial flexibility to execute our business plan.”
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