Question on Eddie Bauer's Balance Sheet

Question on Eddie Bauer's Balance Sheet
Today, Eddie Bauer Holdings is filing bankruptcy protectoin once again. This is what I read on the Net:
"The outdoorsy clothing retailer had $476.1 million in assets and
$426.7 million in debt at the time of the filing Wednesday with the United States Bankruptcy Court of the District of Delaware."
Since assets include liabilities and equity, and one type of liability is debts, does this mean that the total equity that Eddie Bauer had was only $49.4M (since $49.4 + $426.7 = $476.1)? Or is their use of the term "assets" inaccurate, and they really should have used the term "net assets/Book Value/Equity"?
Also, Eddie Bauer has already filed for bankruptcy back in '05. What is the future for a company that has no viable strategy to make an earning? This company sucks, if all they do is go bankrupt.
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Lacking any other information, yes, equity is $49.4 million.
They aren't "bankrupt" for book purposes, in that assets are greater than liabilities. But, they may be cash strapped with assets tied up in fixed and non-cash assets like buildings, inventory, etc., while the debts keep piling up. Making cash is not easy in good times. I bet it's impossible in these times.
Their cash and quick assets are not sufficient to meet their current debts. Cash flow is probably negative.
As far as investors think, they don't give a rats a$$ about the life of a company, just if they can turn a profit on the investment as get dividends.
--
Paul Thomas, CPA
Watkinsville, Georgia
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2.7182818284590... wrote

That mangles the story.

It certainly means that their nett equity is $50M when you allow for the fact that the valuation of some assets is pretty ephemeral.

Everyone knows what they mean.

Just because they havent managed to survive the complete implosion of the world financial system, doesnt mean that they cant find a viable stragegy for situations which arent so bad.

It remains to be seen if they can do better when things arent so bad.
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