When businesses fail to make enough money to support themselves, business owners must make difficult decisions about the future of their companies. For some, filing for Chapter 11 bankruptcy might be the best solution to regaining financial stability. The owners of HHGregg recently made the choice to file to insure the survival of their company.
According to the president and CEO of HHGregg, the company has taken the past year to review every possible alternative to solve its monetary issues. Though they had several options, the company chose to file for Chapter 11 bankruptcy, believing it to be the best path to restructure the company and keep it running. HHGregg will also close 88 stores across the eastern United States, including all three stores in Louisiana.
By filing for Chapter 11 bankruptcy, HHGregg is able to keep most of its doors open and continue its daily business practices while the company pays off its debts. As part of the restructuring, HHGregg is selling assets to an anonymous party to help pay off creditors and improve future financial stability for the company. Representatives claim that this step will help boost profitability and make sure the business reaches its long-term goals.
Louisiana business owners who are concerned with their company's financial stability should learn what options are available to them. Those facing an overwhelming amount of debt might benefit from filing Chapter 11 bankruptcy. A skilled bankruptcy attorney could assess individual situations and help determine if bankruptcy is the right step to take to save a failing business. In addition to this, an attorney could assist business owners in navigating the filing process.
Source: usatoday.com, "HHGregg files for Chapter 11 bankruptcy, finds buyer", Justin L. Mack, March 7, 2017