Financial issues are not relegated to the individual debtor in Texas. They can extend to businesses and even to businesses that seem to have a strong client base and business model. With this in mind, it is not unusual for people who are struggling to consider a business bankruptcy. Filing for Chapter 11 bankruptcy is a viable option for some businesses. For those who think that it is an admission of failure, the perception is wholly inaccurate. In fact, it can assist with getting back on a better foundation and helping the business to survive and thrive as it otherwise would not have.
Last Call Guarantor LLC as well as at least eight of its affiliates recently filed for Chapter 11 bankruptcy protection. The LLC operates the Fox and Hound and other restaurants with debts that came to ten times what its assets are. This is the second time in which the company has had to move forward with a bankruptcy filing. The company did not comment on the move, but the records show that it has as many as 49 creditors and debts for as much as $500 million. Its assets are said to be around $50 million. There are four locations of the Fox and Hound in West Texas. Another restaurant, Champps, has a location in Irving.
The company's first foray into bankruptcy occurred in 2013, and then it was purchased in March of 2014. Problems at attracting customers are believed to be linked to the oil and gas slump in the state and across the country.
There can be numerous reasons for a bankruptcy filing, and these issues can have a domino effect. Such is the case with the issues surrounding the oil and gas struggles and subsequent lack of patrons visiting the Fox and Hound and the other restaurants that are part of this particular company's umbrella.
For those who are having a problem making ends meet and keeping their businesses running, Chapter 11 might be a tactic to explore. Speaking to an attorney experienced in a wide range of options can help with making a decision.
Source: The Dallas Morning News, "Parent of Fox and Hound, Champps seeks bankruptcy protection again," Karen Robinson-Jacobs, Aug. 10, 2016