There may be many different reasons a company in Louisiana or elsewhere may desire to change its financial structure through Chapter 11 bankruptcy. In some cases, profits may not be as high as owners expect. Other times, financial obligations like rent or other bills may become too expensive. Vitamin and health supplement retailer Vitamin World recently made the decision to file for Chapter 11.
Many retailers have recently felt the pressure to financially reorganize their businesses due to declining traffic at stores located in shopping malls. Representatives from Vitamin World have stated that one of the main reasons the company decided to file was to relieve itself of expensive leases in such locations that cut into its finances. The decision will allow Vitamin World to restructure its real estate portfolio while continuing to service customers.
Reports indicate that the company owes a total of over $14 million. At the time of the filing, Vitamin World had over 300 stores in operation. The company plans to close 51 stores during the course of the bankruptcy as part of the reorganization. This will allow it to focus more closely on the remaining stores and its online presence while paying off its debts.
As many retailers across the country have discovered, Chapter 11 bankruptcy can be a solution to the financial problems they face. However, this form of bankruptcy does not only apply to retailers. Any business owners who find their companies struggling with debt can consult experienced Louisiana bankruptcy attorneys to learn more about this and other forms of bankruptcy and receive assistance in filing.
Source: retaildive.com, "Vitamin World files for bankruptcy, plans to close 50 stores", Ben Unglesbee, Sept. 12, 2017