When businesses in Louisiana and other states find themselves in financial trouble, owners may not know where to turn. Many clothing retailers in particular have found themselves struggling financially over the past few years. Whether due to problems adapting to the growing demand of online sales or a decline in demand for product, this has led several of them to choose to file for bankruptcy. Jeans designer and retailer True Religion has become one of the most recent companies to make that decision.
The CEO of True Religion has stated that the decision to file for Chapter 11 bankruptcy was made in an attempt to reduce the company's debt and revitalize the brand so that it can grow in the future. The company plans to close about 30 of its 140 stores. Officials have also stated that the majority of its top-tier secured creditors support the move.
With Chapter 11 bankruptcy, True Religion is able to restructure their debt without having to close all its doors. This allows the company to begin rebuilding itself financially while still providing services to consumers. Many businesses choose to file this form of bankruptcy for this reason.
Whether retail or another type of business, owners who find themselves in severe financial distress would likely benefit from discovering the various debt relief avenues available to them. For many, bankruptcy is the most logical choice. Those interested in learning more about the different forms of bankruptcy and how it can help businesses could speak with an experienced Louisiana bankruptcy attorney for more information. An attorney could assess a client's situation to help determine the best course of action for regaining financial stability.
Source: USA Today, "Jeans maker True Religion seeks revival with Chapter 11 bankruptcy", Nathan Bomey, July 5, 2017