You are the most knowledgeable guy around in this field on these forums, so if you don't know, I don't know.
Thanks. Though I did take courses in economics and business when I was young, much of my learning about the business world was working for a company that nearly went bankrupt 3 times, and recovered, before the owner finally sold the business and retired (don't ask about the new owners). What saved the company each time was bargaining with creditors.
And in working for another company that didn't survive.
There are a few obvious things that have to happen for Meade to survive:
1) income has to increase
2) expenses have to get cut somehow.
3) they have to downsize
4) they have to pay COD for supplies and negotiate long-term paybacks of creditors with interest.
#1 above can be accomplished by concentrating on the profitable side of the business and letting the rest go. This is hard for a company used to offering 350 products when a simple analysis shows only 50 of them make all the profit. It might mean a reduction in sales, but it would happen with a minimal decrease in profit dollars.
#2 above is even more difficult when you've already fired nearly all your management and down-sized your quarters. It probably means sourcing from China and selling the Mexican facility, something Meade may be institutionally reluctant to do because of the huge investment to get it going.
Every penny counts: reducing advertising, employee extras (like a 401K), etc.
#3 Means reducing the offerings to maybe 50 products and having them in stock at all times for immediate shipment and offering terrific customer service for problems. If those 50 products sell and don't have problems, and work well, Meade's reputation could rebound. What would those products be? It depends. They could be dobs, they could be computerized SCTs, or entry-level refractors.
#4 is predicated on the assumption there is cash flow. At this time, that could be a false assumption. You can't pay back long-term notes without a cash flow to do so. And that means sales at the dealer level and the ability to ship product.
Complicating the whole thing is the fact they're a public company. They should be a private company at this point, but no one can afford to buy out the stockholders.
Now, if they chose chapter 7 liquidation, and the corporation dissolved, it's possible that a small group of investors could buy whatever assets might be necessary to a startup company with the intention of doing just what I envision. That group of investors could be Chinese, I suppose.
Would they come back as MEEDE Telescopes ( ).
An outside auditor needs to ascertain whether the company can be saved at this point. It's fairly obvious the people on the inside haven't made the right decisions for years. The earlier post about how long you can take a hit is directly germane.
[EDIT: the above is not altered if there is a large infusion of cash. Without changes, the cash infusion would quickly dissipate. That cash could be used to increase sales, or to buy off creditors long enough to turn things around. But there would have to be a plan about how to do so before any investor would supply the necessary funds. The fact there are offers on the table says someone obviously has a plan how to turn things around.]