Determine potential problem areas at hobby horse

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As a recently hired assistant loans officer for a major bank you are tasked with assisting the loans officer in determining what to do when a $45 million dollar loan to a company called Hobby Horse Ltd. come up for renewal at the end of the month. You know that the Company was founded in 1990. It consists of a chain of discount stores that sell materials for crafts & hobbies. Last year they had a poor holiday season and as a result suffered a loss. Hobby Horse management has recently cancelled construction on any new stores and has decided to sell 15 of its existing stores.

With the financial information attached utilize financial ratios to determine potential problem areas at Hobby Horse. Additionally suggest what possible course(s) of action your Bank might take with respect to its business dealings with Hobby Horse & specifically the loan that is coming due.

Reference no: EM131805490

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