ewitner Posted January 1, 2018 Share Posted January 1, 2018 Does anyone else find this strange that as long as another company owns/has a relationship with a child company, then that company will never ever go out of business? No matter how much money they lose or how unpopular they get, they will keep chugging along. Any idea why? Link to comment Share on other sites More sharing options...
Kingster Posted January 1, 2018 Share Posted January 1, 2018 <p>Are you talking about the parent or the child company?</p><p> Cause the child company will always remain at 0 $ if I'm not mistaken, as the parent company will get all their profits and losses</p> Link to comment Share on other sites More sharing options...
shawn michaels Posted January 1, 2018 Share Posted January 1, 2018 <blockquote data-ipsquote="" class="ipsQuote" data-ipsquote-username="ewitner" data-cite="ewitner" data-ipsquote-contentapp="forums" data-ipsquote-contenttype="forums" data-ipsquote-contentid="44516" data-ipsquote-contentclass="forums_Topic"><div>Does anyone else find this strange that as long as another company owns/has a relationship with a child company, then that company will never ever go out of business? No matter how much money they lose or how unpopular they get, they will keep chugging along.<p> </p><p> Any idea why?</p></div></blockquote><p> </p><p> If you mean the child company, it makes perfect sense, as the parent company is the one banking it and paying for it's expenses.</p> Link to comment Share on other sites More sharing options...
ewitner Posted January 4, 2018 Author Share Posted January 4, 2018 I mean the parent company Link to comment Share on other sites More sharing options...
shawn michaels Posted January 5, 2018 Share Posted January 5, 2018 I mean the parent company Never noticed it, as I usually don't go under. How long have you been in debt? How much is the debt? Is it a recently created company? Link to comment Share on other sites More sharing options...
Adam Ryland Posted January 5, 2018 Share Posted January 5, 2018 A parent company can go out of business. I'm not entirely sure what you're looking at that would make you think otherwise, the only thing I can think is that maybe you're just not aware that a large historic company can last a long time while in debt? That has no relation to whether they have a child company or not though. Link to comment Share on other sites More sharing options...
shawn michaels Posted January 5, 2018 Share Posted January 5, 2018 <blockquote data-ipsquote="" class="ipsQuote" data-ipsquote-username="Adam Ryland" data-cite="Adam Ryland" data-ipsquote-contentapp="forums" data-ipsquote-contenttype="forums" data-ipsquote-contentid="44516" data-ipsquote-contentclass="forums_Topic"><div>A parent company can go out of business. I'm not entirely sure what you're looking at that would make you think otherwise, the only thing I can think is that maybe you're just not aware that a large historic company can last a long time while in debt? That has no relation to whether they have a child company or not though.</div></blockquote><p> </p><p> Is there a specific time frame for a company to go out of business? By your answer there seems to be things that make it a variable instead of a constant.</p> Link to comment Share on other sites More sharing options...
Rayelek Posted January 5, 2018 Share Posted January 5, 2018 Is there a specific time frame for a company to go out of business? By your answer there seems to be things that make it a variable instead of a constant. I'm pretty sure it's variable. I've gone out of business in 3 months in debt, despite a child company (which then becomes a regular company), but I kept SWF in debt for 2.5 years through the editor trying to get them to close before they did. Link to comment Share on other sites More sharing options...
Peria Posted January 5, 2018 Share Posted January 5, 2018 SWF has been in the red for almost a year now and have dropped as low as Regional. They're cult once again and still signing workers despite being about 120k in debt. Link to comment Share on other sites More sharing options...
Adam Ryland Posted January 6, 2018 Share Posted January 6, 2018 <blockquote data-ipsquote="" class="ipsQuote" data-ipsquote-username="shawn michaels 82" data-cite="shawn michaels 82" data-ipsquote-contentapp="forums" data-ipsquote-contenttype="forums" data-ipsquote-contentid="44516" data-ipsquote-contentclass="forums_Topic"><div>Is there a specific time frame for a company to go out of business? By your answer there seems to be things that make it a variable instead of a constant.</div></blockquote><p> </p><p> There's no reason it would be constant - it depends on the size and age of the company. A national company with a 50 year history is naturally going to get a lot more leeway from banks than a local company that's been around for 2.</p> Link to comment Share on other sites More sharing options...
shawn michaels Posted January 6, 2018 Share Posted January 6, 2018 <blockquote data-ipsquote="" class="ipsQuote" data-ipsquote-username="Adam Ryland" data-cite="Adam Ryland" data-ipsquote-contentapp="forums" data-ipsquote-contenttype="forums" data-ipsquote-contentid="44516" data-ipsquote-contentclass="forums_Topic"><div>There's no reason it would be constant - it depends on the size and age of the company. A national company with a 50 year history is naturally going to get a lot more leeway from banks than a local company that's been around for 2.</div></blockquote><p> </p><p> That is very realistic. Nice. Thanks for the clarification.</p> Link to comment Share on other sites More sharing options...
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