Business Case Study: Blindsided By Bankruptcy

In the “Blindsided by Bankruptcy” case study written by Clancy Martin, an owner of a chain of jewelry stores is on the verge of bankruptcy . The attorney says it is time to file Chapter Eleven. Chapter 11 is the legal allowance of business reorganization for the sake of the business’ solvency, liquidity, and future profitability . Then Rudolph Bultmann, the local Rolex rep, calls. He claims the owner need not worry about the five million already owed and that he would like to make a three million dollar deal right now. The owner, of course, identifies herself as an honest businesswoman, however, her attorney has warned her to “stock up” on as much inventory as possible to get through filing Chapter Eleven.
The main issue is what should the jewelry store owner do? The owner should not bluff to Rudolph Bultmann about her current and pending financial situation, should turn down the new five million dollar Rolex deal, and should file her Chapter Eleven as scheduled.
Bluffing is defined as the deliberate attempt to deceive another from one’s true intentions, abilities, or motivations . From a business perspective, it is simple to say that the jewelry store owner needs to protect all of her interests as well as her personal and professional reputation. Unfortunately, the risk outweighs the benefit in this bluff. If the store …show more content…
For some, their initial, gut reaction is what they will use to navigate these slightly muddy waters. For others, taking a step back is mandatory before they can find – what they feel is – the best way to do things. “Blinded by Bankruptcy” highlighted the notion that we all have two obligations. The first obligation is to be an upfront and honest human being, the second, to making one’s wealth abundant . How each individual decides which is more significant to them in any given situation is a