Having run a P&L, I can understand his logic of trying to trade out of difficulties. All businesses will get to a point where they will have cash flow problems, some will be temporary some will be permanent. However the red flag should have been, if the banks won't finance you, you need to seriously look at your business before you end up in this situation.
I feel sorry for the buyers who are now out of pocket, have no camper, and no chance of seeing their hard earned money. It's hard to get a handle on the finances of private companies, especially when you are spending a lot of $ like this. There's no real easy way to understand if the business is running positive cash flow.
Caveat Emptor.
