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Article: Assessing the demise of Reliable. (Reliable Drug Stores Inc.)
- Article from:
- Chain Drug Review
- Article date:
- August 30, 1993
CopyrightCOPYRIGHT 1993 Racher Press, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INDIANAPOLIS--Why did Reliable Drug Stores, a drug chain that boasted 270 units in the Midwest only two years ago, choose to liquidate its assets rather than reorganize under Chapter 11 of the bankruptcy code?
The stock answer is that the chain was the victim of the national economic slowdown and a shaky stock market, but the real reason lies even deeper.
Reliable was caught between a rock and a hard place. Its stores were making money, but as Steve Ansel, the attorney who handled the bankruptcy proceedings, puts it, Reliable simply didn't have the "critical mass" to support its overhead.
Part of the four-year-old chain's business plan was to acquire ...