PRACTICAL VIEW : Business as Usual
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Unless devotees of the Broadway have been hiding under a rock, they undoubtedly know that the department store’s debt-laden owner has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.
This doesn’t mean that customers suddenly will be seeing padlocks on the doors or signs screaming “Lost Our Lease! Forced to Liquidate! Everything Must Go!”
Under Chapter 11, a store continues to operate much as usual while executives work out a plan to get the company on its feet again. In the Broadway’s case, the filing actually frees up cash and improves the chances of getting fresh spring merchandise.
Contrary to what one might expect, it’s possible, some observers say, that the chain will run fewer sales. It needs the beefier profits from full-price transactions. “Changes will be made as the competitive environment dictates,” a company spokesman said.
One thing definitely won’t change. If customers owe money on their store charge cards, they still have to pay their bills.
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