What I mean by this is this:
California - inflation is much higher there than in most other parts of the country, so I have to pay CA prices on a Texas Salary. Think about someone in CA paying for a $300 jacket versus me in Texas. Because of "inflation adjustments" in buyers' mentalities, $300 doesn't seem as much to them as it does to me here in Texas.
Top salaries - often, the company gets a taste of success, and the inevitable usually happens, which is, the top people start paying themselves a little more money, a little more, a little more. Before you know it, they're paying themselves high-fives or low-sixes, taking quite a few trips. The short-sighted ones will even take many trips via private flights. I just think that for a company, a company of that size needs to be paying out REASONABLE salaries to all so that it can continue to build the business and maintain itself (this becomes important when "market saturation," which ALL business models eventually encounter unless it gets done under by something else first).
But I'm going to say I digress because I know absolutely nothing about this company nor the nature of the bankruptcy. It just may be bad times in a formerly hot real estate market. The Sacramento area has been hit hard by loss of jobs and foreclosures. The bust has been going on for a long time, four years I think. Wow, four years?! A lot of time sure has passed by!
