So what part of the whole KKD experience are you "people" enjoying most?
Will you be at the corporate offices when they start carrying out the furniture?
Will you migrate to another stock message board where the company is being short sold out of existence to "help it along?"
What would you do with yourselves without KKD to kick around? Think of the horror!
Still...I'm going to ask...
WHHHHEEEEEEERRRE'S THE B.K.???
>>Of course, when the pump wagon still had some juice, all kkd had to do any time a franchise got in trouble (KC, NoCal, Glazed, Dallas, Michigan, etc...) kkd could bail 'em out with a "moderately accretive" buyout.<<
And then SoCal caused the stock to turn south by letting everyone know that the party was over. Now, after almost 2 years they are again here to put a final seal on the deal. There are more than one person in this world that can play the shell game...
Any idea when KKD started cutting area developers some slack on their bills? 4-5 months worth of past due payments generally take a long time to accumulate as you can't typically just stop paying your bills for 90 days and go from 30 to 120 days of receivables outstanding. That would be too big a shock to KKD's cash flow versus A/R days outstanding drifting out a few days every quarter.
It sounds like something Scotty and Tate might have sanctioned in the months prior to May, 2004 when they were pulling every accounting trick in the book to beat quarterly earnings numbers and maintain the illusions of growth and franchisee prosperity. Maybe they figured if they could keep the stock price high enough they could just buy all the franchisees back over time and bury the receivables issue like they did with Michigan.
If they got behind before (hence the large receivables), how in the world are they going to avoid falling behind "again" even after the large receivable is "frozen"?
Given the store life-cycle, larger and larger receivables seem inevitable. Of course, when the pump wagon still had some juice, all kkd had to do any time a franchise got in trouble (KC, NoCal, Glazed, Dallas, Michigan, etc...) kkd could bail 'em out with a "moderately accretive" buyout.
Your scenario about KKD cutting some slack is accurate. GCFF and other franchises have been past due for many months. The late outstanding balances were "frozen" and current invoices were being paid going forward.
>>occasionally post something worthwhile before I'll accept your instructions in code.<<
If you want to know you'll have to be more civil than that. I've posted plently of useful, highly profitable, sometimes cryptic, sometimes clear, information on this board since before any other single poster that is left.
You'll have to try harder to think or else go back to my previous posts before you claim I haven't said anything of value.
I did download both filings, thanks. Not too much to the one referencing Union Bank.
<I don't think the injunction will require kkd to sell on credit because they have already issued 5 months worth.>
I'd think it would depend on the history. Say that KKD had cut GCFF some slack on payments a while back (as they apparently did with Lone Star) and the 5 months owed was longstanding but GCFF was otherwise paying current invoices at 30 days as they always have. Or maybe GCFF has documented a dispute over the amount due (based on overcharges for goods, lack of documentation of the brand fund, etc.) to KKD months or even a year or two ago and the amount they owe has been in dispute.
If KKD has tolerated GCFF being 5 months past due and now demands payment, I think it's a different issue than if GCFF had been paying their bills on time and then stopped paying anything 4 months ago. KKD would have in better shape with the judge if it was the latter rather than the former. I'd think a judge would look at KKD carrying GFCC's past due debt for a long period of time as evidence of some understanding between the two parties and ask why KKD was suddenly tightening its terms with multiple ADs.
There are 2 separate lawsuits:
1) August 1st Union Bank (owed over $4 million) is attempting to attach gcff assets. This is the lawsuit that kkd tried to intervene on, but then backed off; today's hearing is important because possibly the break up of the franchise has already started - maybe that's why Palmdale closed over the weekend. bc337511
2) gcff suing kkd which indicates a total breakdown in the relationship; my guess is that kkd will soon cut gcff off unless there is an injunction; I don't think the injunction will require kkd to sell on credit because they have already issued 5 months worth. bc340658