When businesses begin to struggle, company owners may consider their options for addressing financial downturns. In some cases, reorganizing and carrying out different business strategies can help businesses see better days again, but in other instances, filing for Chapter 11 bankruptcy may be necessary. For some companies, it may be necessary more than once.
Louisiana readers may be interested in a recent bankruptcy filing made by Payless ShoeSource. According to reports, the shoe chain first filed for Chapter 11 in 2017 and closed hundreds of its stores at that time. That filing allowed the company to eliminate over $435 million in liabilities. However, a second filing became necessary, and the company filed that petition recently. This current filing listed debt liabilities as totaling between $500 million and $1 billion.
The company also stated that it will be closing 2,500 of its stores. There are plans for these stores to remain open at least until the end of March, and many may remain open until May. The company’s North American stores are currently holding going-out-of-business sales across the country.
Filing for Chapter 11 bankruptcy can be a difficult move for business owners to make, but sometimes it is unavoidable. When debt liabilities become too much, bankruptcy can often help address financial hardships. If Louisiana business owners are struggling with their company’s debts, they may want to gain more information on this relief option and determine whether they may benefit from following this route. Discussing their particular cases with experienced attorneys may be wise in order to gain full evaluations of their predicaments.