There are many different facets to owning a business. Whenever a company fails to bring in profits, owners must make difficult financial decisions on how to deal with the problem. One available option for Louisiana proprietors may be filing for Chapter 11 bankruptcy. Perfumania Holdings has recently joined a long list of retailers to make the decision to file.
Over the past three years, Perfumania has closed 103 stores in an unsuccessful attempt to cut costs. As part of the reorganization, owners plan to close another 64 stores to help consolidate and restructure their finances. Though a number of stores are closing, the company plans to keep the remaining stores open for business.
Representatives from Perfumania stated that they expect this bankruptcy will allow the company to renegotiate its leases so that it can focus on its stores that are performing well. They also plan to use this as an opportunity to boost online sales. The CEO said that this move will allow them to establish a firmer foundation that will permit the business to grow.
Now that the company has filed for Chapter 11 bankruptcy, reports show that shares for the company rose 35 percent. Any business owner who finds his or her company struggling financially may find bankruptcy a viable option for keeping a business in operation. Even if an owner chooses not to file, consulting an experienced Louisiana bankruptcy attorney may still prove beneficial. An attorney could assess a company's financial situation to help determine the best course of action to work toward regaining stability.
Source: money.cnn.com, "Perfumania files for Chapter 11 bankruptcy", Laura Sanicola, Aug. 28, 2017