Flying J: Bankrupt!

[HotShot 34]

Got a HUGE booklet today from the lawyers of Flying J of their bankruptcy notice. Thank God they didn't owe me any money...

Were any of you guys servicing them?

Things like this are what always stopped me from focusing on chains and a lot of corporate accounts. I always liked the personal relationships with mom and pops.

[HotShot 34]

I lost $800+ on a complex grease containment system once... The guy called back a couple days later saying that his fan motor wasn't working... I have no idea what happened :lglolly:

Then, he called back a couple years later saying that he needed his exhaust system cleaned or he would be shut down and was willing to pay anything. Poor guy got shut down for 4 days.

I think I won.

[tonyshelton 112]

I had have had to write off a total of about $8000 since I have been in business. It really hurts when you put your time and effort into the job, and then have to lose the money.

I had a company that I share a yard with. They own the yard. About 8 years ago, I did a bunch of work for them, totalling about $6000. My biggest ever default. So, I stopped paying them rent, to make up the deficit. 8 years later, I am still not paying rent. Meanwhile, I have a couple of dumpsters, 5 trailers, and 3 trucks parked in my corner of the yard. There is also some miscellaneous debris that is in the yard, as well. All in all, I think I came out well on this one. They are happy, because my guys provide a little security to the yard, since they are in and out all night long. It is a corner that would not be used, anyway. And, Ilet them borrow one of my open trailers when they need it.

Scott, your case is unusual because you do so much government work.

Writeoffs are just a business expense that has to be planned for in the beginning.

Work has to be priced in a way to absorb it.

I will have to go back and look at old tax returns but I estimate I wrote off more than $100,000 in 8 years in the DC business. It was just built into the pricing. It must be nice working for the government (unless you are in California and getting IOU's!!:D)

I never took anybody to court.

I never sent anyone to collections.

I still made a small fortune and was simply thankful for what God had given us. Thankfully it happened when we were stable enough to take it.

The only one that p*ssed me off was the casino. It was deliberate, planned theft. Most of all the other ones were legitimate difficulties. (Layoffs,firings,real bankruptcy, etc) Even the bankrupt airlines had a legitimate reason not to pay.

[RJTravel 32]

Our associate taught us how to overcome the potentially shakey accounts. This is a large servicing firm and cannot be bothered with constantly chasing after payment. They will bill in advance - for instance the Feburary billings have been delivered. When payment has been received and deposit cleared they will then schedule the work. I don't know if I would have the guts for that mode, but it works well for them and they have few if any complaints.

Richard