It is an unfortunate part of life that many businesses will not succeed. Though the reasons for that are varied, one thing that many of these businesses have in common is their need to handle any debt incurred. One potential solution for Louisiana business owners is filing for Chapter 11 bankruptcy. This is what the casual pizza chain Uncle Maddio's recently decided to do, in the hopes that it will be able to reorganize debt.
Uncle Maddio's parent company, known as Integrity Brands LLC, filed for Chapter 11 bankruptcy recently. The petition shows that its assets are less than $50,000, which greatly outweighs reported liabilities that may go all the way up to $10 million. The judge overseeing the case granted the request for an expedited hearing.
The fast-casual pizza chain was famous for its fully-customizable pizzas. It owes numerous creditors large amounts of money -- one creditor has a claim of over $175,000. There is speculation that the chain was unsuccessful due to competition that was too similar and that the business focused too much on growth in smaller suburban and rural areas in lieu of more urban regions . Most stores are franchised, with around 30 stores in nine different states.
Though it isn't clear exactly what Uncle Maddio's intends to do in the near future, filing for Chapter 11 bankruptcy is a way for many businesses to stay operational while reducing debts, seeking new financing and/or arranging a sale of the entity. Business owners here in Louisiana may be able to take similar measures if they find themselves in this situation. Consulting an experienced bankruptcy attorney can inform company leaders of all available options.