Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

How long before Costco pulls the plug on MusclePharm?

Clearly vendors will likely slow roll delivery on any purchase orders after the MusclePharm Chapter 11.

As far as pre-bankruptcy purchase order deliveries:

If you delivered goods to a debtor in the 20 days before the debtor filed bankruptcy, and those goods were delivered in the ordinary course of business, then you can get administrative claim status of the amount of the goods delivered. See 11 U.S.C. § 503(b)(9). If your claim for administrative expenses is allowed, you jump ahead of all the other unsecured creditors, and in a Chapter 11 case, generally you get paid in full. (Note that the administrative claim is only for the value of the goods, and does not include add ones like taxes, shipping fees, or claims for surcharges. You can still make a claim for those amounts, but they will be an unsecured claim, and not entitled to administrative claim status.) Usually, there is a deadline set early in the case for filing a 503(b)(9) claim, so keep an eye out for notices concerning any “claim bar dates.”

With the limited MusclePharm inventory levels on hand due to cash on hand crunch, it is difficult to see how Costco who accounts for >50% of all Musclepharm revenues will be able to maintain any inventory.