Louisiana business owners who find their companies struggling financially may have several options to help deal with debt. When facing severe financial trouble, many owners turn to one of the various forms of bankruptcy for assistance. Popular wedding dress retailer Alfred Angelo Bridal recently made the decision to file for Chapter 7.
When businesses file for bankruptcy, they typically choose to file either Chapter 11 or Chapter 7. Under the former, companies often keep their doors open while reorganizing their finances as a way to help pay their debts. Alfred Angelo Bridal instead chose to file Chapter 7, which means that it will close all 60 of its stores across the country and liquidate all of its assets.
Many customers expressed concerns that they had not received their purchases at the time of the closures. However, officials have stated that the company would work to fulfill all orders that had already been purchased. Though its stores have closed, representatives from the company have indicated that the liquidation of assets is the most efficient way for Alfred Angelo Bridal to handle its financial situation.
Though every business is different, some may face similar financial struggles. Whether owners choose Chapter 7 or Chapter 11, those suffering from overwhelming debt may find it beneficial to file for bankruptcy. Owners who are interested in learning more about the different forms of bankruptcy available to them could consult experienced Louisiana attorneys to obtain more information. An attorney could assess a client's financial situation to help determine the best course of action for the client's business.
Source: USA Today, "Alfred Angelo closes, files for bankruptcy, panicking brides", Diana Kruzman, David Bailey, July 14, 2017