Though some businesses may flourish on their own, others may need some assistance. When Louisiana business owners discover their company failing to live up to expectations, they must make serious financial decisions. One option is to file for Chapter 11 bankruptcy, as the accessories chain Charming Charlie recently did.
According to recent court filings, Charming Charlie listed between $50 million and $100 million in assets. It is said to have between $100 million and $500 million in liabilities. The company has reportedly secured two loans from a group of its lenders that is expected to aid in the bankruptcy process should the loans be approved by the bankruptcy court.
One reason given for the steady decline in the company's sales is due to dwindling foot traffic in malls. This has resulted in Charming Charlie owners to make the decision to close over 100 of its 375 stores in the United States and Canada. Through these closures and filing for Chapter 11, Charming Charlie can restructure its finances in order to keep the majority of its stores open to consumers. Representatives stated that by reducing overall size and scale of the business, this will allow the company to focus on its core strengths.
Through filing Chapter 11 bankruptcy, businesses are given a chance to restructure their finances without having to cease operations. Often, this allows companies a fresh start economically. Any business owners who are interested in learning more about Chapter 11 or other forms of bankruptcy could consult experienced Louisiana bankruptcy attorneys for more information and assistance in the litigation process.
Source: Chicago Tribune, "Charming Charlie seeks bankruptcy court approval to close 6 Illinois stores", Lauren Zumbach, Dec. 12, 2017