CIT bankruptcy would affect restaurant operators
July 16, 2009
Reuters: Lender CIT Group Inc. warned earlier this week that government bailout talks had ended, a move that could set the stage for bankruptcy. The potential bankruptcy would be a blow to restaurant operators and other franchisees by removing yet another funding source. But longer term, analysts say the long-suffering restaurant sector should be able to find alternatives.
CIT has provided funding for operators of restaurants ranging from Dunkin' Donuts to Pizza Hut.
The San Francisco Chronicle's Bottom Line blogger Andrew S. Ross wrote that financial experts disagree on the potential impact of CIT Group's bankruptcy on restaurant operators. But the American Small Business League fears a large number of bankruptcies will result as small business owners struggle to find replacement financing.
Financing and capital improvements