The many aspects of running a business can be challenging for a great deal of business owners. Those in the retail industry have especially suffered from serious debt recently. When Louisiana proprietors find that their debt outweighs their profits, they must begin looking for solutions to deal with their financial problems. Over the course of this year, multiple retailers have discovered a solution through filing Chapter 11 bankruptcy.
For many retailers, the competition from online stores has decreased sales for their brick and mortar stores. This, paired with rising interest rates, has left many companies with significant debt. At least 12 American retailers have chosen to file for bankruptcy since the beginning of this year. While some of these businesses have since closed, others have taken advantage of the benefits of Chapter 11 and kept their doors open.
One of the advantages that Chapter 11 bankruptcy has for businesses is that companies can remain open to continue serving consumers throughout the completion of the bankruptcy. Businesses are allowed to restructure their finances so that they can pay back their debts more easily. This gives businesses a chance to survive while working to regain financial stability.
Louisiana retailers struggling with overwhelming debt may find an answer to their financial problems through the aid of Chapter 11 bankruptcy. Those who are interested in learning more about this form of bankruptcy may consider consulting experienced bankruptcy attorneys. Attorneys could provide more information as well as assess clients' individual situations to determine if bankruptcy is the appropriate course of action.
Source: USA Today, "Retail bankruptcies are exploding; Sears, J.C. Penney, Macy's are struggling", Daniel B. Kline, May 19, 2017