Muscle Pharm Corp (fka MSLPQ)

[Rhenarium]

People, and companies, don't normally declare bankruptcy because they WANT to, they declare bankruptcy because they HAVE to.

They now have a ton of debt, very little cash, and are still likely a long way form being profitable.

No one is going to lend them any more money. I don't think they can raise anywhere near the amount of cash they need with a secondary stock offering - they probably need to raise more than anyone would pay to buy the company outright. And they are still bleeding money, so they certainly aren't going to "earn" their way out of the mess they're in.

Declaring bankruptcy would certainly kill relationships with their SUPPLIERS, who wouldn't get paid the many millions they're owed. I'm not sure how much RETAILERS would care, as long as product kept flowing.

Which is why I figure the most likely outcome is some company with deep pockets buying the carcass for a song, actually PAYING their suppliers, running the company properly, and taking advantage of the brand that has been built to realize the massive gains that current shareholders were hoping to get.