When Louisiana business owners find their companies in more debt than their profits can repay, they must begin looking at all available options to rectify the problem. One potential solution for many owners may be filing Chapter 11 bankruptcy. The owner of the seafood restaurant chain Joe's Crab Shack recently filed for this form of bankruptcy.
Ignite Restaurant Inc., which owns the chain, stated that it has been considering selling the business in light of dwindling sales. However, owners believed that potential buyers would not purchase the company in that state. Since filing for bankruptcy, Ignite now plans to sell Joe's Crab Shack for at least $50 million to a private equity firm.
Ignite representatives state that the bankruptcy and the subsequent sale of the business are the result of a carefully planned process. By choosing to file Chapter 11 bankruptcy, the restaurant owners are given the opportunity to reorganize their finances without having to close down their locations. This allows them to pay back their debts and handle their finances as they deem necessary.
Keeping businesses alive may require owners to take steps they did not anticipate when they first opened their doors. Knowing all the financial relief alternatives available can help owners decide what course of action is best for their businesses. Any Louisiana business owners who are interested in learning more about Chapter 11 bankruptcy could consult experienced attorneys to learn more about this form of bankruptcy. In addition to providing information, attorneys could also assist clients throughout the bankruptcy process.
Source: nj.com, "Joe's Crab Shack and Brick House Tavern + Tap file for bankruptcy", Spencer Kent, June 9, 2017