Texans are aware that sometimes a business can face difficult financial times. In such situations, the business owners try their best to make it thrive. However, once it is certain that they won’t be able to clear of the business debts they have to decide on the future of their company.
When the debts are significant and the business owner does not have resources to clear them, they can file for bankruptcy. Unlike the notion that during bankruptcy the business will have to be dissolved to repay the debts, there are options wherein the business owner can restructure the business and manage it while clearing off the debts. This can be done by filing for Chapter 11 bankruptcy. Recently, ALCO Stores, Inc. has filed for Chapter 11 bankruptcy.
According to sources, the Coppell, Texas, based company has filed for bankruptcy in the Dallas U.S. District Court. It is stated that the local stores will continue to operate during the bankruptcy proceedings. According to reports, ALCO has planned to sell its successful stores and shut down the remaining stores.
A document filed with the Federal Securities and Exchange Commission shows that the local stores will continue its operations during the bankruptcy proceedings with the $110 million revolving credit it has received from a bank. Other SEC filings state that a joint venture of the financial firms has agreed to sell furniture and fixtures and other inventory and merchandise from the stores that will be shut down.
When a company decides to file for bankruptcy, it needs to decide on the type of filing suited to their situation. Knowledge of the bankruptcy laws can help them decide on the bankruptcy filing and also give options on other forms of debt relief. This can help them take correct decisions for their business.
Source: Clovis News Journal, “ALCO files Chapter 11 bankruptcy,” Nov. 14, 2014