Quote:
Originally Posted by twitchyzero
they fucked a single distributor to the tune of 7.5M?
are these numbers normal in this biz?? wouldn't any sane mgmt at the distributing centre cut them off after a few hundred thousands in the red?
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Admittedly, I am not at all familiar with suppliers, their typical sales / finance practices, etc. But I would guess that esp for for a retailer the size of NCIX, it would not be surprising for them to have a credit term (or whatever its proper business name is called) of 90 days or more before having to pay off an invoice. In the mean time during those 90 days, the retailer would likely have racked up another 2 months' worth of purchases from the distributor. So depending on how much "stuff" NCIX orders from this particular supplier, that $7.5M could represent 3+ months' worth of unpaid invoices, and that would still be more or less a standard business practice.
Quote:
Originally Posted by bobbinka
They're filing a proposal. If the proposal is accepted by the creditors, they'll continue to operate. It's not quite at the bankruptcy stage yet.
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I suspect the creditors would have more information about NCIX than the general public does -- at least they'd be privy to more financial information than what is publicly available. And with all the info that has gone public, if I were a responsible creditor, I would certainly have looked into those info as well. For me, I would not have very much confidence in the way they were conducting business in the past.