Summary
Finaly Negotiate to get rid from Bankruptcy. Isreal Vendors of Finaly are very Tensed. Finlay reported that there sales declined by 20% on 31st Jan. 09
Analysis
This all start before two years, when sales started to go down but Company believes that its just a matter of time and all will going to fine in few months but Quater by Quater sales downfall leads to delay in payments to Finaly vendors and Now only two quity firm GECC and Harbinger can save Finaly from filing Chapter 11 by increasing $520 million to Finlat Books.
The Isreal Diamond Institute ask all Isrealy Vendors to help Finaly to negotiate with both equity frims to save Finlay from Bankruptcy and clear Vendors Payments.
On 31st January 2009 Finlay declared that there sales in the quater were down by 20% to $306.7million. But what will happen after that because almost all Giants Retail Companies is going through these problem many of them impliment different methods to Cut Down ther Cost and Expenses.
By having a look to current situation it is clear that Market condition is very poor and Sales are badly affected so, this negotiation with Equity Firms will only help Finlay to delay its bankruptcy otherwise situation may become more bad after few months.
