Food for thought. $CAKE has ~$122mm this coming year in lease liabilities. So call it $10mm a month in lease payments... on 294 stores for ~$34K/month. On ~$60mm in cash, plus, a $90mm draw on their credit facility... Think about that. (1)
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Either this is the most conservative move ever, when it is an expected thing from a lot of tenants, or things are REALLLLY bad. Doesn’t seem like there is any in between (2).
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Replying to @ragnarisapirate
Could be both really bad + using Section 502(b)(6) as a bargaining chip vs. landlords.
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Replying to @LAForeverHall
That is very well a possibility. But if that happens, it would prolly happen en masse, and screw up the whole of the entire economy. I dunno man. It seems like we are pretty incentivized to just eat a couple months of expenses?
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So let the landlords eat the loss to let the banks eat the loss to let the government eat the loss to let us eat $CAKE!
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