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How a company received $8 million only to go bust 4 months later

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n2doc Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-22-11 11:36 AM
Original message
How a company received $8 million only to go bust 4 months later
By Ameet Sachdev and Alejandra Cancino, Tribune reporters
January 23, 2011

Protein Solutions, a highflying supplier of meat to restaurant chains such as T.G.I. Friday's, abruptly filed for bankruptcy protection in October. Its remaining equipment will be auctioned later this month.

Unsettled economic times have hurt Chicago-area small businesses, and too many to count have gone out of business. What makes Protein Solution's liquidation unusual is that it received fresh capital through a state program just four months before it filed for bankruptcy, financial support many small businesses are begging for.

The Chicago company obtained $7.85 million in June under an Illinois economic development plan meant to foster job creation in low-income communities. The funds were supposed to reduce Protein Solutions' debt and support its continued growth.

Yet the company quickly unraveled, throwing more than 300 employees out of work in a city struggling with high unemployment and leaving suppliers with about $9.5 million in unpaid bills.

more

http://www.chicagotribune.com/business/ct-biz-0123-advantage-capital--20110123,0,1008262.story

Somebody needs to go to jail over this...
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RandomThoughts Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-22-11 11:40 AM
Response to Original message
1. So it was about the buying of a company, not about an election.
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MannyGoldstein Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-22-11 11:40 AM
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2. "Protein Solutions" - how beautifully dystopian
Scary, scary.
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LiberalFighter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-22-11 12:15 PM
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3. Not exactly free market when a business is begging for money from the govt.
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cbdo2007 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-22-11 12:56 PM
Response to Reply #3
4. And is allowed to go bankrupt to cancel out all of their debt.
I'm all for "Free Market" but the problem is that what we have here in the U.S. isn't free market at all.

Free Market - does NOT mean the govt. gives money to companies.
Free Market - does NOT mean companies can just get all their debt erased at the drop of a hat.

That's the problem here is that if we truly had a "Free Market" where companies were truly responsible for stuff, all these idiot companies would go out of business.
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