"If suppliers refuse to ship, it snowballs."
The company was so broke that suppliers were refusing to deliver raw materials, and the company's creditors had hired a new president to prevent a complete collapse.
But on Sept. 4, Workbench returned to the court and asked to liquidate after major suppliers refused to extend additional credit.
The Marantz Company said it would begin selling a machine last year, but its Japanese suppliers refused to ship the product.
With such hazards involved, some potential suppliers have refused to do business with Armadillo.
In court testimony, Ames had said that suppliers refused to ship goods and extend credit since it filed for bankruptcy.
Spanish suppliers of oranges and mandarins also refused to ship deliveries until they were paid.
The American stores were facing a crisis because suppliers had refused to ship fall merchandise on credit.
Mr. Sells said some suppliers had refused to ship orders until they had been paid for previous orders.
Ames filed for Chapter 11 bankruptcy protection on April 25 after nervous suppliers refused to ship merchandise.