Delphi is struggling to find investors to allow them to emerge from Chapter 11. Part II
By Rachel Lynn Foley - Kansas City, MO Bankruptcy on Dec 7, 2007 in General Bankruptcy Information, Missouri
Why should you care about this? This is just one more sign that you need to start counting your pennies to make it through the tough times that are ahead for the economy. Delphi is having problems finding lenders because the lenders are not willing and are financially unable to take the risk that they once did. This in turn means that Delphi will need to tighten their belts in order to meet their bottom line and emerge from bankruptcy to survive as a company. Corporations attempting to reorganize through a Chapter 11 may need to layoff employees because they cannot afford to keep the staff that they currently have. Layoffs will result in more people being on the unemployment line and/or competing in this already tight job market. When this happens the disposable income for a community reduces.
You still maybe asking yourself why does this matter to you. Well if the disposable income decreases in your community the result is that less money will be spent at your local stores. When less money is coming into the local stores or a national chain the store is left with several choices, none of them very positive. The store can in turn tighten their belts and raise prices to compensate for the loss of sales or they can layoff people to reduce their overall cost of operation or they can in drastic times close the store and place even more people into the community without money to support the economy. There is NO silver lining in these scenarios.
The economy itself is a very vicious cycle and the fact that a national employer struggles to stay open in today’s economy affects everyone of us in one form or fashion. Protect yourself, be informed and prepare to weather the economic storm.
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