log 6 - rides constantly on the edge of bankruptcy. It...

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Ross Palmer 810-69-9737 Log 6 4/22/2008 To Buy Time, Linens 'n Things Pays Vendors Before Delivery Linens 'n Things Inc. is trying to stay afloat as it's company sees low sales and profit. Due to their current financial situation, they are forced to buy from venders cash first. The management team believes that although their company is seeing bad times currently, by surviving, they believe they can pull through and once again become a profitable business. The CEO of the company believes the current economic status of the nation to be the root of their problems. He is quoted saying, “The upheaval in the financial world is problematic. It puts enormous stress on our capital structure. Our capital structure was never designed to withstand this kind of pummeling from the outside world. All of the financial issues have been too much to overcome.” Throughout these times, Linen 'n Things Inc.
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Unformatted text preview: rides constantly on the edge of bankruptcy. It seems like Linens 'n Things really needs to cash their chips in before it's too late. Even their vendors are starting to show doubt in their success. The CEO of the company is beginning to show doubt, even as he continues to keep the company moving forward. Also, the company cites the causes of their problems as result of the financial conditions of the world, which is completely external from the workings of their company. If they are running into bankruptcy and can't find problems within their own systems, then they are definitely in trouble in the long run. As I see it, bankruptcy is the most viable option for this company at the moment and doing anything else seems to prolong the inevitable. McCracken, Jeffrey. (2008, April 22). To Buy Time, Linens 'n Things Pays Vendors Before Delivery. The Wall Street p. B1, B2...
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This note was uploaded on 05/06/2008 for the course ART 5021 taught by Professor Man,kathle during the Spring '08 term at Colorado.

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