Sad day here. One of my basket cases going through Chapter 11 is giving it up.\u00a0 Between the prolongation of the case by a seriously OCD Federal Judge, a vindictive Federal Trustee who keeps trying to prove malfeasance and the actions of a Progressive Government passing a ridiculous minimum wage law state wide, the three restaurant business is going under.<\/p>\n
Once the wages were mandated , full service restaurants that were middle priced were doomed. Chipolte and other ‘fast fresh’ models would dominate.<\/p>\n
The Judge took every minor accusation and demanded a full blown investigation , which took the available cash from a start point of $300,000 and dwindled it to $100,000 in professional fees to rebut the charges over a two year period.\u00a0 They happened to be continuous study of the same two charges over and over, made by a not very bright but protected class US Attorney.<\/p>\n
Today I deliver the death knell, a projection that at current costs and continued loss of customers, the business is headed to liquidation.<\/p>\n
It could have all been avoided with a speedy and rational process.<\/p>\n
Bright spot – the Attorney for the debtor addressed the Judge who was demanding yet another lengthy response to the same accusation that had been made six times before. “Your Honor, the debtor has\u00a0responded to this before. He no longer has the financial wherewithal to pay to respond again. No defense can be made.”<\/p>\n
The Judge was floored and dismissed the request for more investigation by the US Attorney, a light dawning on him that he had mismanaged to whole case and the disaster was on his watch.<\/p>\n
Sad day here. One of my basket cases going through Chapter 11 is giving it up.\u00a0 Between the prolongation of the case by a seriously OCD Federal Judge, a vindictive Federal Trustee who keeps trying to prove malfeasance and the actions of a Progressive Government passing a ridiculous minimum wage law state wide, the three restaurant business is going under.<\/p>\n
Once the wages were mandated , full service restaurants that were middle priced were doomed. Chipolte and other ‘fast fresh’ models would dominate.<\/p>\n
The Judge took every minor accusation and demanded a full blown investigation , which took the available cash from a start point of $300,000 and dwindled it to $100,000 in professional fees to rebut the charges over a two year period.\u00a0 They happened to be … Continue reading