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what retail chains are staying closed? (Original Post) pstokely May 2020 OP
I believe Blockbuster will remain closed. BamaRefugee May 2020 #1
. MissB May 2020 #2
JCP? ProfessorGAC May 2020 #3
what took JCP so long to file chapter 11? pstokely May 2020 #4
That's What 11 Is ProfessorGAC May 2020 #5
reorganization cheat creditors and people to whom they owe money nt msongs May 2020 #6
Define Cheat ProfessorGAC May 2020 #7

ProfessorGAC

(64,425 posts)
5. That's What 11 Is
Sun May 10, 2020, 12:32 PM
May 2020

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"

ProfessorGAC

(64,425 posts)
7. Define Cheat
Sun May 10, 2020, 04:22 PM
May 2020

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.

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