This is one of the oldest Zio-tricks in the books. You let your
payables go unpaid (rent, taxes, employees, utilities, FICA, and
suppliers). Next you place some hefty orders from your top suppliers,
like Sony's $5,000 TV's. Naturally the top goods wind up going out the
back door before you close. Then, there is the $50 million of payments
to Feldman consulting, Jacobs storage, Seigel LLC attorneys, and other
special friends. And who controls the employees' 401K's? Did Circuit
City invest the employees retirement funds in some real estate owned by
their pals?
Now you boys have no doubt received some hefty bonuses, and golden
parachutes. And naturally the original owners saw this disaster coming,
and bailed out at the top. Then you have to wonder if Bennie Fine, and
his pals, didn't short the stock before negative announcements.
Bankruptcy can be a beautiful thing if you know what you are doing!
The neat thing is they will reopen their doors in a week. The Zio-airlines
did this, Ichan bought TWA and can the unions, creditors had their hands
out, the stewardesses went from $50k a year to $18k.
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