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I disagree that this is necessarily less risky than investing in a new
bookstore of the same variety.  I don't know what's up here, but I do know
that they got a decent pile o' cash when they sold the name, and they
closed the cafe they said was a money drain.  And they still need money to
fund operations after all that?  Honestly, this seems like it needs to be
evaluated on a "going concern" basis, ifyaknowwhatImean.

The current plan, to sell shares of the place to the customers and become
more like a co-op, may be a terrible idea.  Such a plan might complicate
chapter 11, and that may be what needs to happen.  A lot of small
businesses like this need to reorganize to shed debt once in a while, and
they may be no different.

But it's worth noting that if there's an excess of bookstores vs what the
market will support, then there's an excess of bookstores.  One that's
having trouble getting enough customers to pay the bills is in a very
similar situation to a brand new start-up, and one way out may well be a
reorganization to get a fresh start.

Should the City play a role in this sort of thing?  It seems to me like a
terrible can of worms.  Of course, no one is suggesting this should be
done generally -- yet.  That's what disturbs me.

Erik Hare      [EMAIL PROTECTED]      http://home.comcast.net/~wabbitoid/
Irvine Park, West End, Saint Paul, Minnesota, USA, North America, Earth

Fine Amish furniture, cedar chests, and crafts  http://www.harmonycedar.com




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