I’ve asked the question a number of times now – if a company is unable to sell it’s products or services, and they reach a position where they are unable to continue with business operations, doesn’t that mean the consumer has spoken? Should the company not shut down at that point?
Gordon Bethune, the former Continental Air CEO, wonders the same exact thing and has a great quote in the process:
“Wow, what makes them exempt from reality? What are the bankruptcy laws invented for?” Bethune asked. “I mean – if it works in airlines, works in steel – what’s the matter with these guys? Why not have a judge decide instead of the political process? And, you know – you get some fairness in the federal court, so there’s no excuse for this whole debacle I don’t think.”
Here is the full video:
Think about how many companies ended up going through bankruptcy and still are around today. Just off the top of my head…
- United Airlines
- Dow Corning
- Armstrong Industries
- Marvel Entertainment
- Fruit of the Loom
- Owens Corning
- W.R. Grace
- Delta Air
I’m sure there are plenty more, but there one can see a them from the list above. Three major industries are represented – airlines, chemical manufacturers and industrial producers. All had to face the reality that they were poorly managed or they had unforeseen circumstances that created a situation where they could not meet their finical obligations.
Some how they still are around today, their industries did not fall into complete ruin, and some how the consumer still buys their products and services…. why are car companies any different?
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