Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50877
Opportunities exist to buy up undervalued real estate and cast-off divisions of restructured companies. But are the risks worth the potential rewards? stores in the past two months, despite all the economic sooth- sayers warning of slower consumer spending from now until forever. What is interesting is the 393,440-square-foot building once housed a Circuit City distribution centre. Other stories have been scattered through business news H L Undervalued Real Estate about hhgregg taking over the former homes of Circuit City stores left vacant when the electronic giant filed for Chapter 11 bankruptcy. But if it comes over the border into Canada looking for the same vacancies it may be surprised to find The Source by Circuit City is still selling electronics gear. The Source, the Canadian arm of Circuit City, was a thriving enterprise in almost every mall and shopping centre across Canada. Dragged down into Chapter 11 by its parent company, the Canadian arm consisting of 750 stores owned by InterTAN, was snapped up by Bell Canada last March. Another joint purchase by Hilco Consumer Capital Corp. and Gordon Brothers Group LLC snagged retailer Linens 'n Things intellectual property assets last February. Companies such as Ericsson and Avaya Inc. also got on the buying band- wagon to beat out other contenders and pluck business units from bankrupt telecom manufacturer Nortel Networks. As is the case whenever there are tough economic times, there are bargains to be had. Those bargains may be picking up successful business units like Nortel's wireless division, INHOUSE DECEMBER 2009/JANUARY 2010 • 15 hgregg Appliances Inc. recently signed a lease to take over a massive building to house its new cen- tral distribution centre in Brandywine, Md. The news might not be all that surprising for the spe- cialty electronics outfit that has opened nine new RCUIT CITY Undervalued R Undervalued Real Estate Undervalued Real Estate ITY Undervalued Real Estate Undervalued Real Est EL HES G INGS GS Estate valued Real Estate M THE By Robert Todd