McDonald's loans halted because of credit crisis

by mtippett | September 29, 2008 at 09:49 am

600 views | 0 Recommendations | 0 comments

Nobody is immune from the effects of the tightening credit markets in the US. McDonald's, the symbol of American capitalism is the latest victim.

CHICAGO (AdAge.com) -- The banking crisis is threatening to take a rather surprising hostage: McDonald's big-budget coffee rollout.

Tightening credit conditions, which are crimping plans for marketers as diverse as giant General Motors Corp. and relatively small household-products company Method, have prompted Bank of America to halt loans to McDonald's franchisees. They need the capital to frantically build coffee bars in the chain's 14,000 locations for what was planned to be an April coffee introduction.