With all the freight sitting god knows where waiting for trucking co to be paid before they deliver it, how are those vendors being paid? The vendors don’t usually get paid until the cip matches. Unless we paid them up front for merchandise, we are back to vendors not being paid again. And from what I’ve heard they have already blew they the 225 million and we’re not even close to meeting the criteria for the other 800 mil.
So…???
10 replies (most recent on top)
Good riddance BB&B.....
There will be no customers to buy the cr-p coming off the trucks anyway. You are already seeing that. I doubt it will be a tidal wave coming back to the stores. Bloodbath now has the scarlet letters BK on it. If they buy something, how can they be sure they can return it if the company keeps teetering on the edge?
We paid them up front because the vendors will STOP coming once the money dries up. That will happen soon.
even if they do pay back the vendors, they still need the money to then also pay them up front; and none of that matters if they haven’t paid the trucking companies, it just means freight will keep piling up in warehouses
"They didn't burn through all the 225 million yet but will do so by the next earnings date.." Unless she puts that in an SEC filing there is no reason to believe it it just by calculating the cash they had in the last report and averaging out the cash burn rate. Remember them "saying" cash flow would be break even in this 4th quarter? I'm going out on a limb here and casting doubt on that too.
No doubt they're still in trouble. They are taking things quarter by quarter. The most important indication is after this next quarter. The next reporting earnings in April is already known to be bad but if they don't come close to break even by August, they will likely not hit the mark to get the next round of funding. At that point, it'll go into bankruptcy. I'm sure they're still trying to find a buyer of Baby during this time as a backup plan as well.
Saying it and doing it are two very different things. Once this infusion of money is gone where is it going to come from? Also you are leaving out the tremendous amount of debt outside of the loan, interest and vendors they have. Where is the money going to come from to keep the lights on? They are still very much in trouble and still very much on the path to bankruptcy.
SG announced that they will be paying vendors under new terms and going forward, everything will be paid upfront. Right now, they're paying off vendors slowly. They didn't burn through all the 225 million yet but will do so by the next earnings date (April). The order of priority of payout is - 1. The ABL Loan from Chase, 2. The late coupon payments that was due in early Feb, 3. Vendors. 1 was paid early once they got the money, 2 was just announced in the news, and 3 is happening slowly.
I haven't had any cip on my bench all week but we also haven't had a truck in forever. We have like 28 pallets sitting at the trucking warehouse in town but they won't bring them till the bill is paid. Only store staying open in our area as of yet and so much of the staff is looking to jump ship, supervisors especially.
Unless they’ve got a whole grove of money trees somewhere, they’re never gonna be able to pay back what they owe