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Article: Bi-Mart workers weigh the risks.(Business)(Sale proposal shows that employees would be laden with debt)
- Article from:
- The Register Guard (Eugene, OR)
- Article date:
- February 6, 2004
CopyrightCOPYRIGHT 2004 The Register Guard. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Edward Russo The Register-Guard
The proposal by Bi-Mart Corp. to sell the company to employees would deliver a profit of about $80 million to the current owners while shouldering employees with enormous new debt, the sale documents indicate.
To buy the Eugene-based discount retail chain, the employees as a group would need to borrow $84 million, more than doubling Bi-Mart's debt load, according to sale documents the owners distributed to employees.
That could cause trouble if Bi-Mart's sales wilt under pressure from rival discount retailers, the documents spell out.
But Bi-Mart's owners insist that the firm would remain viable ...