I'm not an accountant, but I have trouble understanding that explanation, given that the monthly sales deteriorated within the first 3 months after the bankruptcy.If it was doomed to failure (losing money every month), why was there so much optimism in the report filed with the expense applications a few months back?
Confusing things is that NWTM is still running, despite letters said they were forced to "close the company". One employee reportedly was told to file for unemployment retroactively to December 26.
Confusing things even further is when people were terminated. But if the employees were terminated during a week where they were instructed not to work, wouldn't the date of termination effectively be their last day of work (December 22)?
There are also several creditors who are objecting to their dies being purchased by another company (NWTM's policy seems to be that NWTM owns the dies, although there appear to be a number of cases where customers either paid extra to own the dies or were promised that the dies belonged to them). So this should be a very, very interesting hearing.
The Trustee has just filed a motion saying that he has accepted "stalking horse" bids from two companies for two sets of assets.
He explained that the court would not allow him to pay employees for time off without using vacation time (which certainly makes sense).