Im not personally owed by the Freeman group but while that letter does seem to own up to the problems it also contains some huge red flags.
There is an undelying subtle threat that you won't get paid unless you keep taking assignments while pushing out the payment dates even further
You can bet your sweet tush people working at the Freeman group will be getting paid from the jobs people take now while the shoppers wait to get repaid.
Hate to say this but this is a classic ponzi/ robbing peter to pay paul situation.
In this case..... robbing shoppers to pay owners/workers.....
Hope everyone has a chair when the music stops?
When part of you business plan is to sell stuff........ thats not good either.
Sounds like they have exhausted all lines of normal credit and dont even have the ability to sell an equity share in the company to raise capital.
If this company just did shops where you had very small/no reinbursements then it would be a reasonable risk.
Based on the facts as we know them I would be exteremely wary of doing any jobs for this company as the risk of default would seem to be very high.