In that case if it comes to liquidating the inventory of GC I would be curious if that is actually still "owned" by the suppliers and could be returned?
Highly unlikely.
Technically that's considered "consignment" and means GC has no obligation to keep the inventory, therefore they aren't really "sales" and the makers can't use those outstanding payables to forecast income.
Which kicks in a whole other slew of ramifications.
BUT:
If it
did get that tight, I suspect GC would be making inquiries about returning unsold product.
At that point it'd probably behoove both parties for the makers to recover that inventory at cost rather than taking a risk on bigger losses from a bankruptcy liquidation.
But it's a tough call.
Who's gonna buy what're probably "old" models?
How's that sudden inventory inflation gonna affect production and then future sales?
Looking at it from a maker's angle: Fender considered it more cost-effective to liquidate inventory twice, in Corona and Tacoma, than to attempt to market "obsolete" models through the dealers, piecemeal.
Most manufacturing entities want a deal to be
done when the product's delivered, kindly pay us according to the terms, thanks.