Yikes, I hate this going back and forth. Perhaps I'm not making myself clear. For the reasons you stated about customer loyalty, my dad's restaurant (nor others in area) have no problem honoring the coupons we put in the current Entertainment book that expires 11/1/1013. Those books were sold by schools last fall 2012.
What I'm referring to is the future book that covers the 2014 year. These books would go on sale this coming Sept 2013 after kids go back to school and those coupons would be valid until 11/1/2014.
It did not cost us any advertising to be in the book except our coupon discount to the customers who come in with them. So we do not owe Entertainment anything. They print the ads, we honor the coupons, they make their money from schools selling the books. Per our contract, we had until April 1st to contact Entertainment to delete our 2014 50% off coupons.
When we heard they were bankrupt on 3/12/2013, and shut down their offices completely, told all the workers they had no jobs.... we signed with another coupon book to promote our restaurant. We were unable to contact Entertainment by the April 1st deadline because THEY closed and told the world and us, screw you.
So many of our local restaurants signed up to be in the other book that goes on sale this fall. None of us want to be in TWO books and give every customer that walks in a 50% deal.
We feel that Entertainment broke the contracts on 3/12/13 and by not giving us a chance to contact them prior to the cancellation date of 4/1/2013, do not feel they can automatically just throw all of us in their 2014 book if the company is sold and maintains operations under new ownership.
Moreover, as they are still Chapter 7, which means they do not intend on paying back the 50 to 100 million owed to creditors.... the money they'd make selling the 2014 books (that we are basically financing because of the discounts we are giving up) will go to the ne owner and not be used to pay off the creditors. Thus the new owner gets his cake and eats it too. None of us want to do business with a company who screws it's creditors out of millions of dollars and wants us to participate in their next years book to make millions for the new owner. Without us giving the discounts, Entertainment has no business or sales.
As far as our school goes, we too signed an agreement last fall to sell 2014 Entertainment books this coming fall. When the news said they were Chapter 7, we signed to sell a competitor book, as did many of our local schools.
You say that we'd be in breach of contract if we didn't sell their books, but like you also said, if my dad didn't honor the coupons, we'd lose customers. How many schools will do business with Entertainment if they try to sue all of us? We certainly would not and many others I talked to have the same thoughts.
It is not our fault they filed Chapter 7. They should have thought about it earlier and asked if anyone was interested in buying the company. They failed to do so and the Trustee reports in his petition that the son of the original founders claims he made a bid prior to the petition of 11.3 million.
There is also a website that has several Entertainment employees making statements about their feelings about the company. On 3/5/13, one week before they filed bankruptcy, an employee states that the CEO ran off with all the money.
Perhaps this sudden loss of capital or liquid assets caused the bankruptcy? If so, it's possible that the assets shown for bidding purposes do not include what the company is really worth if that money had not been taken and that the profitability of the company is much higher in the millions more than they claim.
So again, from the restaurant standpoint, for the 2014 coupon book that has not even been printed yet and we were not able to cancel per terms of the agreement because they filed for Chapter 7 two weeks prior to that cancellation date, do you feel the Trustee can make the contracts enforceable?
From the school standpoint, what does the Trustee have to provide us with within that 60 day period to affirm or assume the contracts we signed to sell Entertainment Books? If we don't hear from the Trustee personally by email or letter by the 60 days, does the contracts become rejected or invalid and we are able to so what we want?
I also understand the Trustee can file a motion to extend the 60 day period. But again, that's just holding the schools hostage and by the time school lets out in June, they won't know what they can do when school begins in September which seems unreasonable.