Quote:
Originally Posted by BobC
Tim,
Here's the unanswered $64,000 question, WTF did they do with all this money they borrowed? It obviously wasn't left in the Marx business or used to buy assets still in the business. So, did they intentionally plan this to pull out or use the funds personally, and then file bankruptcy to get out of paying it back? Or maybe they made some stupid investing ot business decision(s) that led them to lose the money. As Adam pointed out before, the $60K of bad debt from one customer, plus the $50K allegedly stolen by the one bookkeeper, doesn't begin to explain the over $1M in outstanding debts they reported in their bankruptcy filing. I'm assuming (actually hoping) the court requires at least some fundamental forensic accounting be performed on the Marx company books to maybe find out what was done to really get the company in the position it is now in, and to determine to what extent the owner(s) were intentionally involved so as to decide if there are any potential civil or criminal charges or penalties they may be liable for.
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Bob, you're the accountant, but stating they had $4.4 Million in revenue (not profit) doesn't really mean a whole lot, if as a bulk submitter they are working on tiny margins, and of that 4.4 million, they owe PSA 4.2 million in fees, their employees money, lousy book-keeping and getting skimmed from the inside, and also trying to float loans while PSA is taking close to two years to make their customers happy.
Not saying they're innocent in any way. Just that it was very likely a very poorly thought out business model. They also probably skimmed a lot of salary at the top before they filed for bankruptcy also...so don't mistake this for sympathy for them either.
