Vulture Capital
You can't beat the big creditors to the bones of a bankrupt client, so what do you do?
Before September 11, Le Gourmet Gift Basket Inc. was growing at a healthyclip. But in the months that followed the attacks, with steep dropsin the stock market and mounting layoffs, many of its would-becustomers began welshing on their contracts and bouncing checks.Five of them went bankrupt in a 10-month period. "I'venever seen anything like it," says Cynthia McKay, 47,president and CEO of the Denver-based franchise.
McKay stood in line with the other creditors but was mostlyunsuccessful in her efforts to recoup her investments. Althoughthere might be some indication of a problem beforehand, she says,often "you don't know 'til you get that littlepostcard [from bankruptcy court]."
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