Many factors can play into the success or lack thereof of businesses. At any time, a company could face financial difficulties that leave it reeling. When this happens, it is not uncommon for companies to try to find their best options for addressing the issues they face, which often includes considering Chapter 11 bankruptcy.
Louisiana readers may be interested in a recent report indicating that women’s apparel company Charlotte Russe has filed for Chapter 11. Though the company was able to reduce its debt by $124 million last year, it is continuing to struggle. The current amount of debt the company has was not given in the report. However, the business hopes that the bankruptcy filing will allow for its financial struggles to be addressed effectively.
The report indicated that the company has received $50 million in debtor-in-possession financing, and it hopes to keep certain retail locations operating along with the company’s website. The company has decided to close approximately 94 stores, but in current total, there are over 500 locations operating in the United States. It was not mentioned when the store closures may take place or which exact locations may be affected.
Because any business can struggle financially, it is important to know that debt relief options are available. Chapter 11 bankruptcy can often act as a strand of hope and help for companies that cannot effectively handle financial issues. If Louisiana business owners are facing such hardships, they may want to discuss this option with knowledgeable attorneys to decide whether it could be a viable option for their specific cases.