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| quote: | Originally posted by DaveT
With Bankruptcy, it basically relieves them of paying their creditors or only paying back a partial amount.
But you have to be approved by a court for bankruptcy....and a part of your bankruptcy is pulling back on just about anything not making money or is causing the business problems. This leads to closing of the stores....though that doesn't always happen...
it also forces reorganization of staff....so more layoffs.
From there, they have to reorganize and restructure their business model. If they feel they can do this without closing stores, then they can. Down the road, this can actually lead to lower prices or better deals. Just because they need to get people to come back or start coming.
When they start getting solid cash flow again, they come out of bankruptcy. And from there, they can work on re-expanding. |
smarty pants!!!
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