I am debating whether I need to start a new blog keyword "bankruptcies" for the coming era....
We've just nailed our
fourth airliner in over a week (one in Italy), out with Frontier Airlines, and
our first major retailer (I don't consider Sharper Image to be a major name but they filed last month). As for airlines, filing Chapter 11 is simply part of their business plan - it happens every 4-5 years - so *yawn* - but really 4 airlines in just over a week even wakes me up a bit. (I guess my headline is a bit misleading as "bankruptcy" is a bit different than "filing Chapter 11") As for
Linens 'n Things? Just the first of many in retail in my eyes... thankfully this all shall pass in 6 months or I'd be worried about the economy...
- Frontier Airlines Holdings Inc. Friday said it and its subsidiaries filed for protection under Chapter 11 after an "unexpected attempt" by its principal credit-card processor to substantially increase a "holdback" of customer receipts threatened to severely impact Frontier's liquidity.
- The Denver holding company for Frontier Airlines said it intends to continue normal business operations Friday and throughout its reorganization process.
- Frontier said its principal credit-card processor very recently and unexpectedly informed the company that beginning April 11 it intended to start withholding significant proceeds received from the sale of Frontier tickets.
- The news comes after two other discount carriers, ATA Airlines Inc. and Aloha Airgroup Inc., recently filed for bankruptcy and discontinued operations, squeezed by soaring fuel prices and a slowing economy.
- Frontier in December said it would lay off 10% of its work force not directly related to flight operations and has restructured its route map to eliminate unprofitable routes.
- Frontier's Chapter 11 cases were filed Friday in U.S.
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