Friday, May 22, 2009 9:25:58 AM
Hacketts tells vendors payment of overdue bills unlikely soon
Monday, May 18, 2009, 3:07pm
OGDENSBURG – The owner of Hacketts department stores is telling vendors it is unlikely they will receive payment soon for overdue bills that in many cases are nearly a year old.
“Since January 2009, Hacketts has been suffering from a severe cash shortage in significant part as a result of our lender’s decision to terminate Hackett’s line of credit, which has required the company to devote most of its available cash to pay back the balance owing to the lender,” said Thomas Scozzafava, chief executive officer and president in a May 13 letter to vendors.
“Consequently, Hacketts was unable to stay current with its trade payables, and this led to the recent involuntary bankruptcy filing against Hacketts which has now been dismissed.”
In St. Lawrence County, the long-time retailer operates stores in Ogdensburg, Massena, Potsdam, Canton and Gouverneur.
The letter continues, “The good news is that this difficult period shows signs of nearing an end as sales have remained strong and the company has reduced the indebtedness to its working capital lender from $5 million in December 2008 to just under $1.2 million today. At the current pace, the company will pay off the balance in just over 13 weeks.”
Scozzafava continued, “Management recognizes that Hacketts has significant payables owing to its vendors and other stakeholders. Hacketts is committed to staying in business serving our customer and to paying our trade and other obligations as soon as possible.
“However, until the current line of credit is repaid and a replacement line of credit is secured, it is unlikely that payments on past obligations can be made.”
http://northcountrynow.com/nc-this-week/story-of-day/full-story.asp?uid=2389&area=NCNow+News
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transmitted @_bbb_)
Monday, May 18, 2009, 3:07pm
OGDENSBURG – The owner of Hacketts department stores is telling vendors it is unlikely they will receive payment soon for overdue bills that in many cases are nearly a year old.
“Since January 2009, Hacketts has been suffering from a severe cash shortage in significant part as a result of our lender’s decision to terminate Hackett’s line of credit, which has required the company to devote most of its available cash to pay back the balance owing to the lender,” said Thomas Scozzafava, chief executive officer and president in a May 13 letter to vendors.
“Consequently, Hacketts was unable to stay current with its trade payables, and this led to the recent involuntary bankruptcy filing against Hacketts which has now been dismissed.”
In St. Lawrence County, the long-time retailer operates stores in Ogdensburg, Massena, Potsdam, Canton and Gouverneur.
The letter continues, “The good news is that this difficult period shows signs of nearing an end as sales have remained strong and the company has reduced the indebtedness to its working capital lender from $5 million in December 2008 to just under $1.2 million today. At the current pace, the company will pay off the balance in just over 13 weeks.”
Scozzafava continued, “Management recognizes that Hacketts has significant payables owing to its vendors and other stakeholders. Hacketts is committed to staying in business serving our customer and to paying our trade and other obligations as soon as possible.
“However, until the current line of credit is repaid and a replacement line of credit is secured, it is unlikely that payments on past obligations can be made.”
http://northcountrynow.com/nc-this-week/story-of-day/full-story.asp?uid=2389&area=NCNow+News
(
transmitted @_bbb_)
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