Posted: Jul 26, 2012 5:01 PM by Breanna Roy - KPAX News
Updated: Jul 27, 2012 8:21 AM
MISSOULA -Vann's home electronic store just lost the majority of its financing and may have to file for bankruptcy.
The recently-hired chief executive officer of Vann's, Jerry McConnell, said the company will have to do something about the financial situation "pretty quickly."
A week ago, McConnell said Vann's major lender, Capital Solutions (a division of General Electric Capital) which provides two-thirds of its financing, shook hands on a renegotiation. Then on Friday, the company backed out of the agreement.
The remainder of Vann's financing comes from local lender, First Interstate Bank, but McConnell says, that money won't last that long.
Now the company will consider filing for bankruptcy as a means to save the business, save jobs and to come up with an alternate source of financing.
"It buys you time to do a better analysis, talk to potential buyers, look at alternatives," McConnell said. "Something that you can't do when you pretty much have a gun to your head as far as paying your bills."
McConnell told us Vann's retail stores have a "zero percent" chance of closing.
But its outlying businesses, including the ON store in Southgate Mall, Vanns.com and BigSkyCountry.com, are struggling. Those businesses, McConnell said, won't necessarily close, but may be sold or consolidated if the company does file bankruptcy.