General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumswhat retail chains are staying closed?
most of them are doing slow re-openings but have any announced they are staying closed indefinitely? how many are even mandating customers and employees wear masks besides CostCo?
BamaRefugee
(3,487 posts)ProfessorGAC
(65,212 posts)They are filing BKO
Probably means many of the stores will remain shuttered.
Maybe not all though.
pstokely
(10,530 posts)although Sears has stayed open somehow
ProfessorGAC
(65,212 posts)It's a reorganization to limit long term debt liability and assign debt holder levels.
Typically the reorganization involves shuttering those divisions or properties that are losing the most, or least profitable.
In Key West, the Sears & KMart are both still operating. They're the only games in town, so they still make money.
There are no Sears open within 30 miles of us, and we're 65 miles from their world HQ!
Chapter 7 is full liquidation.
In nearly all cases, it's "that's all folks"
msongs
(67,453 posts)ProfessorGAC
(65,212 posts)I get what you mean, but it's easy to forget that those companies are full of people who aren't big deals.
They just work there.
Besides, lenders understand credit risk.
The need 3%, but company X pays 4.
They get their return for 5-6 years, then get 60¢ on the dollar of the remains balance. Boom, they still get their 3%.
The banks & insurance companies providing line of credit rarely lose money because a company reorganizes.
I'm more forgiving about structured reorganization because it saves jobs.