Friday, June 2, 2017

Why Retailers Have More Debt Than Meets the Eye

Abercrombie & Fitch is on the block after enduring four years of declining sales.With net cash on its balance sheet, Abercrombie & Fitch seems like an easy acquisition target, despite years of declining sales. But add in lease obligations and it becomes one of the most heavily indebted retailers.

Abercrombie is one of many retailers with net cash on its balance sheet but substantial off-balance sheet financial obligations in the form of operating leases.. . . more

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