Pardon the pun …. but I have no skin in the game ……
In almost every situation I have ever bene involved in, when any company hastily restructures their financial facilities and announces down sizing (needing less people), regardless of how long they have been in business, this is usually a sign of poor cash flow and/or, debt management.
The fact they issued checks to suppliers that bounced (and they had to change accounts) and did not have the time, or credit facilities to start issuing checks from the new account and/or maintain a balance in the old account is a red flag.
This is one sign that the company is under financial stress, it doesn't mean their efforts to restructure won't set them on a path to improve their business, but this isn't good.
Dean on the forum was a high level banker and financial guy - I'm sure he can provide his insight - he will know better than I do - but that's my sincere opinion on this and I don't like seeing good people getting hurt when things go south.
|