Revco Drug Store Case Summary

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Revco Drug store was a rated in 1956 and it raised into debt from a company purchase of Odd Lot Trading Co. To expand the company, Revco needs drug selling services, by inquiring many of its competitors. Revco retail slowly started to decline. Towards the final stage, the company was headed in debt. After continued borrowing, the company had a debt of 1.7 billion US dollars. Revco is Unable to pay the debt, so filed bankruptcy in July of 1988. Revco Drug Store company has suffered a huge loss due to failed in business plan horribly. There are 2000 Revco drug stores in nearly 30 states. But the Revco drug store is facing a Bankruptcy due to debt issues. When a company is prepared to go for Bankruptcy working on a plan is always a serious issue. The firm will be facing a debt reaching from 44.7 Million in 1985 to 700 million in 1986 (Holusha, 1988) Revco faced $40.5 million by filing in direct bankruptcy costs. The main loss was the retailers. The bankruptcy reformation was the best decision. I would choose a plan to confirm that the company follows a good strategy. The total debt of Revco is about $1.3 billion and $46 million interest, which confirm that the company remains in business and the creditors will be waged. This made intellect because I believe …show more content…

To confirm company’s employees were creative and not wasting the money of the company for that Revco need to work with employees and management team. This idea would reduce the cost of operational in many of the stores. The other thing the Revco would do is settle the assets and sell to increase enough capital to balance the loans and the interests accumulated. If operational stores decline, the number of employees would reduce and the coming cost of operating a store. This would increase the improvements of Revco and reduce losses of labor

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