Originally Posted by
pacer142
I know someone who used to work in the outdoor equipment industry, who said that when a retailer goes bust they always do this sort of thing - because the creditors (manufacturers) get tipped off and are waiting outside to take unsold, un-paid-for goods back the second it is announced, and this is to be prevented. So the second the decision is announced, the stores are always evacuated and the shutters brought straight down.
Neil
Um, when a company files bankruptcy (I take it that this is your "going bust"), if a creditor did that knowing of the filing, the creditor is going to lose more than payment. I would love to be in court when a debtor objects to such a creditorīs 503(b)(9) claim when it had already removed goods in violation of the automatic stay. A fun time will be had by almost everyone in the courtroom. One party will probably leave poorer and crying.
In the case of the Pie, the bankruptcy papers (including some of the "first day" orders) probably required what was done to be done, although one wonders why this didnīt happen either before or after hours. It isnīt like the attorneys actually file anything in paper at the clerkīs office.
If the debtor files a Chapter 7 (liquidation), the debtor cannot operate the business at all, so it must shut down immediately. Only a trustee can get an operating order in Ch. 7.