Businesses can be successful for years, and due to changes in the economy, competition or other factors, they can suddenly find themselves facing significant downturns. In these cases, financial issues can cause a once-booming company to struggle significantly. In fact, Chapter 11 cases are not uncommon when this type of scenario strikes.
Louisiana residents may be interested in a bankruptcy petition that was recently filed by retail giant Sears Holdings. Reports indicated that the company has billions of dollars in outstanding liabilities. The bankruptcy filing came after a debt payment for $134 million came due, and the company could not pay. The company hopes to stay in business despite the financial struggles they are currently facing. However, 300 of their stores have already closed.
Sears still has approximately 700 open stores, and they hope that a buyer will purchase a number of them. The company is also planning on closing 46 stores next month and an additional 142 stores before the end of the year. At the time of the bankruptcy filing, Sears was facing losses of approximately $125,000 a month.
Whether a company has been in business for decades or only a few years, financial issues can strike quickly. Chapter 11 bankruptcy can often help struggling businesses get out from under their substantial debt. If Louisiana business owners are wondering about their debt relief options, they may wish to give bankruptcy close consideration. Experienced attorneys can help interested parties understand their options and how this route may impact their businesses, their outstanding balances and how it may help them keep their doors open.