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Question for Roddy & the Media Buyers: Shane Co.

B

bgwilde1

Question for you...

Since Shane Company has filed for bankruptcy to restructure its debt, what does that mean for their buys on stations in Atlanta?

I can't imagine that the court is going to allow them to buy as deeply as they have in the past, and some stations will notice the drop from that advertiser.

I can also imagine their media buyer is having a fit right now, and is it possible they could be left holding the bag on some bad Shaneco debt?

Just curious.
 
Could a station yank spots that are contracted but not yet paid for, and go cash up front for any future spots? Or is that a bankruptcy no-no?

D. Geller could be in a similar boat as Shane, with things being tough all over. They may keep their mouth shut if they have their own issues.

Although it would be interesting to hear DG somehow parlay this into a (bogus) comment about "trip costs to Antwerp"...
 
I can't imagine the courts putting constraints on advertising - that's like saying they can only use so much electricity. Advertising is a basic necessity for Shane to remain competitive.
Credit is a completely different question. I'll bet few stations will carry a schedule without it being prepaid - but in this enviroment, with most stations NOT being sold out, some may take the gamble. After all, Shane has been a very good client for many years and the business has a good chance of making it through this rough patch. The economy IS going to come back and with all the "gub-ment stimulus" it's going to come roaring back - Tom Shane will be there to help us celebrate with diamonds.......
 
Well if this means hearing less of Tom Shane's annoying voice then good. Anyone dumb enough to believe there are diamond minds in Bellgium is an idiot. There is something for everyone a D Gallier and Sons.
 
"Now, you have a friend who has filed for Chapter 11 bankruptcy protection." -- Tom Shane
 
I honestly don't know, Bill, how the bankruptcy filing will affect Shane's ability to buy radio. As Taylor said, stations might require cash upfront.

I also plead ignorance regarding Shane's obligations under bankruptcy protection to pay creditors, including the media. As far as whether an ad agency could be left holding the bag, that has come up a lot over the years and has gone into court. I believe the courts have generally sided with the agency and against the advertiser. I've had cases where the agency could not get credit from stations or did not want to go through the credit approval process. When that happened, stations would accept buys only if the advertiser wrote a letter saying it would pay if the agency defaulted. But I don't think these cases involved bankruptcies but situations where the advertiser refused to pay, could not afford to pay, or had gone out of business. Sorry I can't be of more help.

This does remind me of when a couple of years ago I was working on the Northlake Hospital account. The hospital had signed a no-cancellation contract with CBS Outdoor and then went out of business. CBS Outdoor told us they would not let the hospital out of its contract. I asked CBS where they were going to send the invoices since the hospital had closed. They finally relented.

My radio blog: www.atlairwaves.blogspot.com
 
RhubarbFan said:
Well if this means hearing less of Tom Shane's annoying voice then good. Anyone dumb enough to believe there are diamond minds in Bellgium is an idiot. There is something for everyone a D Gallier and Sons.
Click to expand...

Rhubarb???

What or where is BELLGIUM?
 
Tibbs2 said:
RhubarbFan said:
Well if this means hearing less of Tom Shane's annoying voice then good. Anyone dumb enough to believe there are diamond minds in Bellgium is an idiot. There is something for everyone a D Gallier and Sons.
Click to expand...

Rhubarb???

What or where is BELLGIUM?
Click to expand...

Better question is what is a diamond mind?
 
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