Chapter 11 bankruptcy is designed to help struggling businesses become successful once more. A company that owns several restaurants in the Raleigh area recently filed for Chapter 11 bankruptcy protection. The restauranteur currently owns 4 restaurants in the area and used to own others. According to the court filing, the restaurant owner has assets totaling $1.1 million but owes $2.57 million in debts. Court records show that the restaurant owner owes money to a bank, a realty company and in taxes.
This blog recently discussed how business bankruptcy options can help struggling businesses. As is true of personal bankruptcy, there are both reorganization and liquidation bankruptcy options for struggling businesses and the best option depends on the needs and goals of the business.
When a business is struggling, its owners should be familiar with business bankruptcy protections that may be available to help. Corporations, partnerships and sole proprietorships that are struggling with overwhelming business debt and looking to get back on their feet may all benefit from Chapter 11 bankruptcy protection.
This blog recently discussed how Chapter 11 bankruptcy can help struggling businesses. Sears recently announced that it will close an additional 40 stores as part of its Chapter 11 bankruptcy process to help it in its efforts to return to profitability. The retailer is currently in the process of closing 188 stores including at least 4 in North Carolina, including one in Raleigh. Both Sears and Kmart stores are included in the store closures.
It is important for struggling businesses to be aware that there are business bankruptcy options available for when they need help. Chapter 11 is a reorganization bankruptcy option for businesses wanting to remain in business and seek relief from overwhelming debt.