Fabric Super-Store (C) Harvard Case Solution & Analysis

Entrepreneurs are invited to purchase fabric Super-store franchise, management of suppliers to oppose take-back (VTB) financing for the purchase of two stores, if employers would be willing to buy and operate both. VTB debt is second only to the bank in the event of bankruptcy. The couple were convinced that they can be successful as a franchisee with stores, but were associated with a high rate of interest offered by VTB offer. At the time there was no penalty for early repayment (as in its secured credit bank), the bank offers a very competitive price. After evaluation of the financial implications of a counter offer fabric Super-store, it was clear that without an immediate and significant increase in sales in both stores, businesses will be unable to conduct business due to high financing costs. While both parties were motivated to make a deal happen, some important obstacles need to be moved in order to actually do it. "Hide
by David Simpson, Colin McDougall Source: Richard Ivey School of Business Foundation 2 pages. Publication Date: July 27, 2011. Prod. #: W11178-PDF-ENG

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