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Re: [OM] Ritz going under

Subject: Re: [OM] Ritz going under
From: Ken Norton <ken@xxxxxxxxxxx>
Date: Mon, 23 Feb 2009 11:53:32 -0600
>
> Well, except Nykon and Canyon are their two largest unsecured creditors.
> About $40M USD between them.
>


I don't mean to be cruel here, but "Live by the sword, Die by the sword".
Canon, specifically pee'd in the pool by buying market share.  One of the
reasons why Ritz didn't carry Olympus for the longest time was because
Olympus wouldn't play the same game.

Now, that said, Olympus probably took a nasty hit from Circuit City as well
as Ritz, and who knows how much Walmart and Target owes them.  The problem
with the majority of these major stores is that they use "Accounts Payable"
as a revenue stream.  They let the invoices go 180 days past due then only
after you hound them do they send you a check for 75% (or less) of the
invoice amount.  First timers get screwed royaly by them, but the subsequent
contracts are usually for a higher amount to make up for this "Payment Tax".

I'd say that $40 million USD is probably "getting off cheap" for Nikon and
Canon with Ritz.  It'll hurt, but I'm sure that six months ago they knew
that they were going to go default with one or more major stores and chose
to make $400 million USD to lose $40 million.

AG
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