Chapter 11's purpose is to reorganize the company, and lenders are more willing to give financing to a company if they can get priority in repayment out of a bankrupt company's Chapter 11 plan.
]]>standard cc experience. they are too good for your money.
]]>Then I clicked the link and saw the picture. And it all made sense.
]]>OK the airlines get bailed out, the banks get bailed out, and retailers who don't know how to give customer service get bailed out....even those who can't pay their mortgage get bailed out. How about those of us who have lost most of our retirement savings with the stock market, have tried to start a new business and racked up debt the size of a small house. No help for us little guys just trying to make happen our dreams of a business that actually provides personal customer service. Give it all to the idiots who make millions and let us little guys die and never be able to get a loan at all, ever, simply because we are not important/big/stupid enough. GRRRRRRR!
]]>@310Drew: Bingo. I'll bet they already have a lot of capital tied up in CC and are angling for some sort of preferred lender status.
]]>@mdoublej: lmfo fantastic comment
]]>RAAAAAAAAAARRRRRR!!!!!
]]>This sounds like a really stupid move on BoA's part to me, but they must smell some sort of rip-off potential or figure they can sock it to CC with high loan rates until the latter burns and crashes for good.
]]>@katylostherart: BOA did get a bailout. They were "forced" to take the money.
]]>I hate BoA but that dont make stupid decisions. I'd imagine there's a clause in that contract that makes BoA full owner if shit even slips a little.
Electronics Store of America anyone?
]]>This saga is turning into a drawn-out horror flick. Just *explicative* die!
]]>Seriously, have the BoA-ums ever been in a Circuit City? Even long before the implosion, their stores were a nightmare (CS desk is not a register, not ever ever ever!). The company did fuck-all to slow the collapse. Why invest any amount of precious capital in a business that proved it didn't know how to avoid failure even when people were shouting at them what to do?
Unless they know something the rest of us don't, like Circuit City's plans to resurrect Jesus in electronic appliance form.
]]>Imagine the fees Circuit City will see from BoA if every day consumers get hit with nasty bank fees. WOW!
]]>Anyway, I'm hoping this will turn the retailer around. More competition is usually a good thing. The last thing we need is Wal-Mart to take over any more of the market, and/or the possibility of some even worse Chinese company setting up shop on our shores.
]]>Bank of America, bank of Crisitunity.
]]>@TecmoTech: Cause they know if CC defaults, they'll get bailed out!
]]>Maybe with this catastrophic downturn and a new executive team they'll reorganize to be a worthwhile retailer. They need to update their stores, teach customer service, and follow through on things they say.
Maybe a name change is in order to shake that old Circuit City vibe?
]]>