Business bankruptcy options are available to help struggling businesses overcome their financial struggles. A total of 9 Sears stores will close throughout Texas as part of the company’s announcement that it will file for Chapter 11 reorganization bankruptcy. The company has been experiencing declining sales and increasing debt and will close 142 stores as part of the liquidation process of some of its stores. Changes in the retail landscape, shopping habits and technology have resulted in declining sales for the retailer.
The Chapter 11 bankruptcy process could impact other businesses and the manufacturer of various appliances. Chapter 11 bankruptcy is a debt reorganization option for businesses that allows the business to restructure its debts and look towards the future and profitability. The Chapter 11 bankruptcy process allows the struggling company time to raise capital and to also attempt to shed some of its debts.
During the Chapter 11 bankruptcy process, the business will continue to operate as it works out a reorganization plan with the bankruptcy court. The process may also allow the business to renegotiate some of its obligations to help it save on costs and expenses. The process is designed to help the struggling business get back on its feet and enjoy profitability once more.
Both reorganization and liquidation bankruptcy options are available to businesses and individuals seeking relief from overwhelming debt burdens. As a result, it is helpful for a business seeking debt relief to be familiar with the different resources available to it to help it enjoy a new start.