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A Lesson in Bankruptcy

Thursday May 16 2013

Tommy Moore's restaurant is headed for foreclosure. Moor had taken Chapter 13 in April 2012. Then he showed $272,000 in assets and nearly $853,000 in liabilities. How that plan got approved in court is beyond me. 

Now he has defaulted on a $441,626 note with Frost Bank. He is now planning on filing a Chapter 11 reorganization bankruptcy. 

Tommy knows how to cook chicken, but he does not understand how to calculate break even or target profit. He says it is tough operating on the East Side but reports are that the eatery is quite popular. 

Managerial accounting is the key to business success. We will be studying just that this summer. 

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2 responses to “A Lesson in Bankruptcy”

  1. Luis Martinez Avatar
    Luis Martinez

    I would surmise that his restaurant is popular because his menu prices are cheap! Some people think they can run a business. The truth is, there are many who can’t. He is a candidate for being among those who can’t.

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  2. Elizabeth Faught Avatar
    Elizabeth Faught

    Entrepreneurs come in all shapes and sizes and it is no secret that many of them have poor financial sense. I have seen a few friends/family members run their businesses into the ground thanks to poor financial management. Why doesn’t Tommy seek guidance from people who know how to manage a businesses finances?
    Who knows what type of poor spending is actually going on but I wouldn’t be surprised if his personal finances were in a similar mess.

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