So don't count Sam out just yet - there's a lot more to the collapse of the chain than meets the eye, and a lot more that the media hasn't written about so far.

Various figures have been batted about, but let's say that the total bankruptcy is in the vicinity of $15 million. All but a handful of the Sams-owned stores will close, with the stock molving into a few major stores for sale by the trustees.

Of the money raised by the sale of this stock (now owned by the trustees, not by the recored companies and other suppliers) approximately half will go to the preferred creditor. The preferred creditor here is not the bank, but Sam's family - who fronted money to keep the stores going.

After that, the suppliers get to share what's left (if anything).

A couple of fascinating points to be made:

1) Confirm or deny that Sam's took delivery of its Christmas order a week before the bankruptcy was declared.

2) Sam, wrapping himself in the Maple Leaf flag, says that Canadian artists will not be hurt. Tell that to the marines - Canadian artists whose records are distributed by smaller companies like Fusion II, Trend, Festival, Sonic Unyon, FAB, Select and dozens more most certainly WILL be hurt, and some of these smaller distributors are going to be seriously hurt. Universal, Sony, and the brothers Warner can survive this sort of thing; smaller companies who lose the product to bankruptcy trustees and MAY get some cents back on the dollar are in a different situation entirely.

3) Please notice that the real estate is NOT in bankruiptcy. Has anyone a calculator with enough zeros to figure out how much the Yonge Street property is worth?

This bankruptcy is a smart business move, especially since business on the flagship store in Toronto has been cut by the effects of the construction at Yonge & Dundas (whioch has also affected sales at HMV, some sxay by as much as 30%. And word is that the new complex (currently on some kind of hold, apparently) will have a Virgin Megastore as a major tenant.

Some more points:

1) We're gonna lose a marvelous store with an incredible stock.

2) Nobody ever accused Sam of not having street smarts.

3) But the crocodile tears Sam is shedding all over the media are hardly warranted, eh?

It's another serious blow to the music industry, but Sam and his family are gonna come out with all their money back, the real-estate intact, and Canadian suppliers (the little guys as well as the five majors) are being - may one use the word? - screwed big-time.

Richard