Are we in trouble

afish · #1 (**permalink**) 03-09-2009, 09:21 PM

Hello all I'm not sure if I am in the right spot but I didnt know who else to ask. My wife's good friend told her today that the company they work for paid the investment group that owns them basically all the money they have over 10 million. So this leaves no money for the company to operate on and any money will have to be borrowed. The company is seasonal and wont receive any sizable influx of money till fall. The company just changed hands about 1.5 years ago and last year the company lost money for the first time. This does not sound logical or positive to me, is this the first stage of something bigger? Sorry if i'm out of place hear but my job is in the craper and my wifes is the only thing keeping us afloat and since I'm not hip to all the financial tricks these corperations play it makes me a little nervous.

RobertD · #2 (**permalink**) 03-10-2009, 07:24 PM

Although what they are doing is legal and ethical even though it may not be pleasant for those working there. They are just doing what they needto to protect their money.

You have to understand that any money the business has is the property of the investors, and they have the right to remove it from the business. In fact if the business showed a lose and they did not then they would be rather dumb.

The fact is that the management and employees owe them a duty to perform in a manner which results in them making a profit, if they fail to do so the investors need to protect themselves, which is what they are doing.

And today there are a lot of companies losing money that have never lost a penny welcome to the financial meltdown of 2008 to who knows when.

Now as to what you and your family can do, you will have to do what we did tighten your belt and cut your budget. My family is short one whole income and 10% of the other one.

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