When businesses start amassing significant debts, owners must make tough decisions regarding their finances. One option that many companies in Louisiana and across the country choose to make is to file Chapter 11 bankruptcy. Nine West Holdings, Inc. is reportedly closing in on a deal that will include filing for bankruptcy in the near future.
Nine West is a major shoe and clothing retailer. According to reports, the company is currently facing nearly $1.5 billion in debt. Its main goal in filing for bankruptcy is to pay off the company's creditors. To do this, Nine West is planning on selling assets to pay back first-lien lenders and unsecured term-loan lenders.
Under this form of bankruptcy, the retailer will implement a financial restructuring plan agreed upon by its creditors and the court. By choosing to file Chapter 11, Nine West will not only have a chance to pay back its debts, but to do so while keeping its doors open. Though reports indicate that the company will likely sell parts of the business, no store closures have been announced at this time.
While the thought of trying to deal with overwhelming debt may be intimidating for business owners, the relief that can come from reorganizing finances and regaining economic stability would likely outweigh such stresses. Any business owners who are interested in learning more about Chapter 11 bankruptcy could contact experienced Louisiana bankruptcy attorneys to learn more about the process and obtain assistance in filing. Even if an owner decides against bankruptcy, an attorney could still provide guidance in how best to handle a company's financial situation.
Source: bloomberg.com, "Nine West Plans a Bankruptcy Filing With Asset Sales", Emma Orr and Lauren Coleman-Lochner, Jan. 24, 2018