Both individuals and companies have the option of filing for bankruptcy protection when their debts become overwhelming. Nowadays, more and more U.S. companies have had to file for bankruptcy due to major changes in the marketplace. David's Bridal, the largest bridal retailer in the country, recently filed for Chapter 11 bankruptcy protection.
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.
Reorganization bankruptcy options are available for both businesses and individuals to help both when they find themselves struggling. Texas-based Mattress Firm is reportedly filing for bankruptcy protection that will likely lead to restructuring.
If your business has been struggling, you may wonder what chapter 11 bankruptcy is. In general, Chapter 11 bankruptcy is a bankruptcy option for small businesses and corporations that are struggling and seeking relief from debt that may be crushing for the business.
The restaurant business can be incredibly challenging. Changing tastes and trends can leave a restaurant or even an entire chain suddenly in dire financial straits, even when entrepreneurs identify the right combination of location, menu choices, suppliers, branding and all of the other elements that go into a successful operation.
Tyler residents are likely familiar with the sight of a Brookstone store in a shopping mall or airport. The company started over 50 years ago as a mail-order business selling rare tools and other devices, opening its first physical storefront in the early 1970's. It soon grew into a purveyor of all manner of quirky home products and was an especially popular staple of the thriving shopping mall scene throughout the 1980's and 1990's.
Businesses in Texas and throughout the country must weather all manner of financial ups and downs if they want to remain competitive and successful. Sometimes, when a financial shock take place wherein the business finds itself burdened with overwhelming debt, Chapter 11 bankruptcy is a tactic many use to reorganize and emerge as a player in the market once again, unhindered by those debts.
Among the most iconic brands in pop and rock music is Gibson Guitars. The 114-year-old company makes musical instruments including guitars used by legendary musicians that many Tyler residents instantly recognize, such as Chuck Berry, B.B. King, Jimmy Page, Slash and the Edge, among practically countless others. The company also expanded into consumer audio in recent decades. Today, the company blames that move in part for its decision to file for Chapter 11 bankruptcy.
Like many cities in Texas, Tyler has a proud history of entrepreneurship and small business development. While that environment always comes with its ups and down, business owners can be forgiven if it felt like 2017 packed a harder punch than usual.
There is an all-too-common understanding in business here in Tyler and throughout the country that bankruptcy is the end of the line. Certainly, when business profits shrink, operations struggle and debts take over, something will need to change. But when that change is achieved by filing for Chapter 11 bankruptcy, the business does not necessarily have to call it quits altogether.