3 ms·
It's interesting that they didn't do a re-organizational bankruptcy, which would say "get us out from under (union and other) contracts and we can compete again
by danielweber 14y ago
It's interesting that they didn't do a re-organizational bankruptcy, which would say "get us out from under (union and other) contracts and we can compete again." They are doing a liquidation bankruptcy.
The name brands may well survive, like the pets.com dog did, but it will be at other companies.
EDIT: as child comments point out, they were in re-org and have now collapsed into liquidation
- DigitalJack 14y agoThey've been in re-org bankruptcy since january. Part of the re-org was a new contract with the union. The union rejected and went on strike.
- gwright 14y agoMy understanding is that this was a re-org bankruptcy but that the unions rejected the contract that was agreed to during the re-org and went on strike. Nothing left after that other than to liquidate. This sounds to me like a game of brinksmanship in which neither side blinked.