Businessland Gets Breather From One of Its Creditors

Businessland Inc. won a reprieve Thursday from a major creditor that agreed to temporarily waive finance contracts to let the computer retailer continue stocking stores and avoid possible bankruptcy.

“The financing will enable Businessland to continue to ship products to customers without interruption,” San Jose-based Businessland said in a news release announcing the inventory financing agreement.

The pact with ITT Financial Corp. will let Businessland continue buying Apple Computer Inc. and Compaq Computer Corp. products. Those two companies make some of the most popular personal and business computer lines in Businessland’s inventory, accounting for more than one-third of sales.

“We’re trying to keep things going,” Businessland spokesman Thomas Pelandini said in announcing the pact with ITT.

On Tuesday, Businessland announced that dismal third-quarter earnings and increased competition in the slumping retail computer industry could prompt the company to file for Chapter 11 bankruptcy protection to stave off creditors while it financially reorganizes. Another option if the company can’t recover is merging or selling Businessland--something other computer retailers have done during the past recessionary year.