Thread: Crabtree & Evelyn

Oh, I wouldn't worry just yet. Doesn't Chapter 11 mean... nothing changes, giving the business time to restructure its finances so it can carry on operating? Like a second chance?

How long does being in Chapter 11 last anyway?

I remember when K-Mart filed chapter 11 and 6 months later purchased Sears who had just purchased Lands' End.

Chapter 11 is nothing to worry about.

Correct me if I am wrong, but I do not believe that chapter 11 filing means that the comapny is out of busines.

Originally Posted by jbcohen

Correct me if I am wrong, but I do not believe that chapter 11 filing means that the comapny is out of busines.

I believe it means the company is no longer a going concern (unable to meet its what it owes to its creditors), but that it has been given a reprieve to continue operating as normal to see if it can get its sh1t* together before the liquidators are called in.

*That would be a technical business term.

Put another way, the company is not out of business but might be very shortly. GM has filed for chapter 11 many times over the history of the business and so has Crysler and Ford for that matter.

Gentlemen,

No, of course not: Chapter 11 does not necessarily mean the end. On the other hand, Chapter 11 always gives me a bad feeling.

It's like smelling an ambush.

Regards,

Obie

As a Lehman Brothers shareholder, chapter 11 doesn't necessarily mean that C&E are going to go out of business but it's a BIG first step. It depends on how C&E USA and their creditors get along in court. If the creditors are willing to re-structure debt then they should be ok. Otherwise, C&E USA will be forced to sell off assets and that would be a likely death knell.

I'm keeping my fingers crossed

Cheers!

Gentlemen,

That is one of the best explanations on the subject of Chapter 11. Well done, indeed, especially from a former stockbroker.

So, yes, let's all hope miracles happen and the companies avoids evaporating in the U.S.

Regards,

Obie