Author Topic: BH - Biglari Holdings  (Read 1292880 times)

NBL0303

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Re: BH - Biglari Holdings
« Reply #2840 on: June 04, 2019, 12:21:49 PM »
Hey all:

Drove by the SNS that I used to eat at yesterday.

Almost all the signage is down, drive through menus & promotional signs in windows are gone.  Only signage is on/physically built into the building and the sign at the street.

Looks like this is long term mothballing.  Others who says most closed locations will never re-open are probably right.

Well over 100 locations closed down now. Which I've heard some others argue is actually a good thing. Of course, if the company (read: Sardar Biglari) has the silly conceit that these stores could possibly re-open at some point and spends a significant amount of money aiming towards that - that is one way trouble could come.
« Last Edit: June 04, 2019, 01:14:12 PM by NBL0303 »


Parsad

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Re: BH - Biglari Holdings
« Reply #2841 on: June 04, 2019, 07:14:09 PM »
For our tax specialist friends out there, if Biglari sells 400 restaurants for $10K each...which is only $4M...can he write off the $250M+ loss in Plant & Property against the gains in Cracker Barrel?

If so, on paper BH takes a big loss on the sale of the stores, but they gain on the taxes they would have had to pay if they sold CRBL...and their income will increase dramatically from the new profit-sharing structure.

Cheers!
No man is a failure who has friends!

gfp

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Re: BH - Biglari Holdings
« Reply #2842 on: June 05, 2019, 06:08:20 AM »
I doubt it, at least as described.  You don't become the actual owner of property under the $10k deal.  You don't own much at all really.

For our tax specialist friends out there, if Biglari sells 400 restaurants for $10K each...which is only $4M...can he write off the $250M+ loss in Plant & Property against the gains in Cracker Barrel?

If so, on paper BH takes a big loss on the sale of the stores, but they gain on the taxes they would have had to pay if they sold CRBL...and their income will increase dramatically from the new profit-sharing structure.

Cheers!

Foreign Tuffett

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Re: BH - Biglari Holdings
« Reply #2843 on: June 05, 2019, 06:34:42 AM »
I doubt it, at least as described.  You don't become the actual owner of property under the $10k deal.  You don't own much at all really.

For our tax specialist friends out there, if Biglari sells 400 restaurants for $10K each...which is only $4M...can he write off the $250M+ loss in Plant & Property against the gains in Cracker Barrel?

If so, on paper BH takes a big loss on the sale of the stores, but they gain on the taxes they would have had to pay if they sold CRBL...and their income will increase dramatically from the new profit-sharing structure.

Cheers!

I agree with gfp. I think it's more of a "buying yourself a job" type of deal.