Running a business tends to have its difficulties. Even when companies reach a certain level of success, owners still understand that there are risks around every corner. Unfortunately for some, financial issues could quickly arise that leave Louisiana businesses and those elsewhere struggling. As a result, they need debt assistance available through a Chapter 11 bankruptcy.
It appears that, more recently, shoe companies are facing such hardships. Reports stated that Rockport Group became another shoe company to recently file for liability protection through Chapter 11 bankruptcy. The company reportedly feels that certain business moves, such as separating from previous owner Adidas in 2015, contributed to its struggles as the ‘divorce’ was an expensive and complex endeavor. Of course, the rise of online shopping is also a major contributor as fewer people are visiting physical stores to purchase items.
Though the company wants to remain active, reports did state that its standalone stores may close, which includes 27 across the United States. The consideration of selling assets began in 2017 due to multiple issues that affected the overall operations of the company. Details were not given in the report as to the company’s total liabilities and available assets.
Deciding to file for Chapter 11 bankruptcy can be difficult, but in some cases, it may be the best available option. Dealing with substantial financial hardships within a company can put operations at considerable risk. If Louisiana business owners feel that their companies may be facing too many outstanding liabilities, they may wish to consult with their legal counsel regarding the possibility of filing for bankruptcy protection.
Source: USA Today, “Rockport shoe company files for Chapter 11 bankruptcy protection, may close stores“, Nathan Bomey, May 14, 2018