When the competition gets tough, even some businesses that have been thriving can find themselves facing hard times. In some cases, these hard times can result in serious financial issues that need drastic measures to resolve. As a result, some businesses in Louisiana and elsewhere may look into Chapter 11 bankruptcy for assistance.
It was recently reported that Innovative Mattress Solutions has filed for Chapter 11 bankruptcy protection. The mattress retailer has 142 stores under various names, and the retailer recently received backing from Tempur-Sealy International, a prominent mattress manufacturer, for bankruptcy financing. The report notes that the company expanded too quickly while competitors that offer bed-in-a-box options are seeing a considerable amount of success.
While the CEO of the company stated that stores are open, it is likely that Innovative Mattress Solutions will have to close some of its stores. The chief marketing officer for the company stated that there is an intention to focus on strengthening company performance as well as “right-sizing” the operating structure. The monetary amount owed to creditors by the company was not given in the report.
When businesses find themselves struggling, they may not know where to turn. Fortunately, Chapter 11 bankruptcy can help many companies get their affairs back on track. Louisiana business owners who believe that this option may suit their needs could find it useful to discuss this debt relief route with knowledgeable bankruptcy attorneys. The process can be long and arduous, but the outcomes could be immensely beneficial for those companies that successfully complete their proceedings.