Many people pursue business ventures because they have a passion or lifelong dream. In some cases, these companies may find success for a time, but they may also come to face financial hardship. As a result, some businesses may need to seek debt relief through Chapter 11 bankruptcy.
Louisiana readers may be interested in one out-of-state company that recently came to this decision. It was reported that the pizza chain restaurant has accrued approximately $119 million in debt. In efforts to renew interest, the company has made changes to recipes and created a mobile app, but the efforts did not do much in terms of helping the business address the overwhelming debt.
The company has decided to file for Chapter 11 bankruptcy and is potentially thinking about closing some of its restaurant locations. It was noted that the company could potentially go out out of business if efforts do not go their way, but at the time of the report, many locations were still open and operating as normal. It was noted that the company has been able to reduce $5 million in costs through various actions, such as job cuts.
It can be difficult to predict how well a business will do or how economic fluctuations and trends may impact the company. Unfortunately, some business owners may face more financial difficulties than others. If Louisiana company owners feel that their businesses’ debt struggles have gotten too much to handle on their own, they may wish to consult with experienced attorneys regarding Chapter 11 bankruptcy.
Source: USA Today, “Bertucci’s files Chapter 11 bankruptcy: Pizza chain may close restaurants“, Nathan Bomey, April 16, 2018