new offer from gold coast consortium, page-29

It is a shame that BB has been left in this position. Sycamore are offering to pay out the banks in return for a controlling equity which would go a long way to getting BB back on its feet once again but a rights issue would have to come in at 20 cents not 40 cents because of the dilution factor and it will be required to provide some working capital until the group can remove costs out of its operations. Launa is on the right track by applying better stock control and stock management and margins will improve incrementally. Supermarkets are the real experts in stock management abd to a lesser extent department stores like Target Launas last project.
Every 0.1% improvement in margins and stock turn is worth millions of dollars to supermarkets and similarly it will begin to creep upwards for BB.
It still comes down to ownership of BB, repayment of bank debt and the ability to raise new capital through a rights issue if it is to survive. The alternatives are not too optimistic if these issues cannot be resolved.
BB appears to operate on healthy margins from its accounts but its selling expenses are much much higher than others which suggests a need to pare those costs to remain competetive and profitable. An issue I have raised several times concerns Pro Teams and event sponsorships and endorsements. As happens time and time again it is no longer viable for some companies to continue expensive sponsorships and financing of Pro Teams. ....it happens if they can no longer afford to sponsor these things then they have no choice but to withdraw and allow someone else to take their place in the sponsorship game. BB selling expenses which include shop, staff, advertising, marketing and sponsorships are about 40-50% higher per sales dollar than Quiksilver. That puts them at an immediate disadvantage from the start. The surfies and others may howl me down on this issue but if you cannot afford to do it anymore you cannot afford to do it, there seems very little other mainstream advertising to promote BB.
This takeover nonsense has diverted so much management time away from the business and cost millions of dollars in defense and expense and it is still not resolved. To raise money in a hurry you sell off assets. They apparently bought a lot of real estate and paid top dollar for it so selling off property will more than likely generate further losses, similarly with the rapid expansion of buying brands with huge goodwill components mostbof which have been impaired or written down almost to zero it would be jard to imagine any rush of offers for any brands that might generate a profitable outcome which comes back to ownership again. It needs to be resolved fairly quickly. Respect the concerns of shareholders, employees and Australians as well as the international staff and shareholders.