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Old 16-06-2009   #8
PCN Senior
Join Date: Nov 2008
Location: Montreal
Posts: 540
Quote:
Originally Posted by Nicarlo View Post
not true. If a larger company buys something like circuit city, they already have the contacts and products in the industry. The next time they order something they will order more of it since they now have more of it and therefore getting it usually for cheaper and bringing up profit margins. Plus a company doesnt have to buy a bankrupt company, they can simply buy just the assets and usually for VERY cheap while keeping the same logo but different name. Instead of circuit City, they would be called for example Circuit City by BestBuy. Its all perfectly legal and the millions of dollars of debt that they had no longer exsist because in papers "Circuit City" no longer exists.

Loopholes in the system eh?

P.S, it like to add that this isn't necessary what happen to Circuit City
Well said.
That's unfortunately also one of the major reasons smaller retail companies are going under... its becoming a corporate game that no one else can afford to play anymore. But is that a good or bad thing, I wonder, for us the consumers?
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