(Please Note: the best course of action is to take bold steps before have to file for Chapter 11 or worse a dissolution. I am experienced with crisis management, turnaround management and bankruptcy. Contact Me if you are worried about your business.)
Chapter 11 comes with a great cost including, legal, accounting and filing fees. The most significant cost is often the distraction of management’s attention from the core processes of the business. This filing raises more questions than it answers. The effectiveness of the company’s infrastructure in identifying and correcting the real reasons for losses should be under microscopic scrutiny.
Retail is won or lost one transaction at a time. It looks like Circuit City has a no profit pattern. It seems like this pattern is the core issue that should be resolved during this opportunity for reorganization. If not, the Chapter 11 reorganization will likely move to dissolution.
Ultimately, secured lenders will be fine. Vendors will be paid for new deliveries but are at great risk of not being paid in full for invoices related to deliveries prior to the filing. Landlords of closed locations can now begin to plan on what to do with that space as lease payments will be terminated during the Chapter 11 process. Other leases are likely to be renegotiated. Of course, there are large numbers of people who are now not working just as the holiday season is near for them and their families.
There is very little sunlight shining through with this picture. The glimmer of opportunity is for a structural reorganization to be defined and implemented that strengthens the core business. Should that occur, the purpose of Chapter 11 will have been fulfilled.
There are four foundation tools every business should be using as part of their marketeing strategy. These are listed on my site www.stevepohlit.com I have also written detailed articles about these foundation tools. For example Click Here for an article on how blogs and video help your internet site search engine ranking. You sould be subscribed to Steve Reports for tons of information I publish that will help your business grow profitable revenue.
For your convenience the foundation tools are:
Sounds scary? It isn’t. Watch the video I prepared on this topic and I suggest you believe me when I say: “if I can do this …you can do this”. Of couse if you don’t want to do any of this and have someone do it for you, I am ready to help. For the video on how to back up you WordPress Blog Please Click Here.
Sending all my readers the energy of wellness, peace and abundance
The Profit Expert
Steve is the President of International Business Consulting Resources. His firm specializes in guiding companies to rapid increases in revenue and profits with a sustainable growth rate. Don’t miss my FREE Report: How To Make More Money With Your Business Now and Long Term I am building my practice and welcome new client inquiries. Call me for a fee consultation at 727-587-7871
This report may be freely distributed without restrictions with the original content including this resource box remaining unchanged. Author: Steve Pohlit, Business Consulting Services, Executive Coaching, please visit www.stevepohlit.com
PS. My doors are open for new clients and referrals are well compensated.