Many businesses in Louisiana and across the country have found their profits diminishing over the last few years. This seems to be particularly true for the retail industry. To help cope with these losses and to better organize their financial structure, many businesses choose to file Chapter 11 bankruptcy. Teen apparel chain Styles for Less recently made the decision to file.
Like other similar retailers, Styles for Less cites the rise of online shopping and industry discounting as major factors in their profit decline. The company is said to have a range of $10 million to $50 million in both assets and liabilities. Representatives for Styles for Less believe this move will be beneficial in eliminating debt and providing a healthier financial structure.
Though the business has closed several of its stores, it does not plan to close its doors for good. By filing this bankruptcy, Styles for Less will have the opportunity to reorganize its finances while keeping its remaining stores open. This will allow it to continue providing products to consumers and jobs to its hundreds of employees.
When business owners see their companies failing to make a profit or reach their expected standards, owners must consider many difficult factors regarding their finances. Experienced Louisiana bankruptcy attorneys could provide assistance to those who are interested in discovering the best solutions to their financial problems. Whether a business should file for Chapter 11 bankruptcy or pursue another form of debt relief, attorneys could determine the best solution for its situation by assessing a company's particular circumstances.
Source: USA Today, "Bankruptcy: Styles for Less files for Chapter 11, hopes to avoid retail graveyard", Nathan Bomey, Nov. 7, 2017