Running a business comes with many risks. Even after years of beneficial outcomes, companies could end up in difficult financial predicaments. It is not uncommon for business owners to consider filing Chapter 11 bankruptcy in efforts to address the financial problems that have befallen their companies.
Louisiana readers may be interested in a recent Chapter 11 filing. According to reports, retail store Charming Charlie has filed for bankruptcy for the second time in less than two years. The company was founded in 2004, and it completed its first bankruptcy case in April 2018. Unfortunately, the company continued to have financial difficulties, including a lack of capital and fewer customer visits. The company took on lower-quality inventory after its first bankruptcy, but those products often went unsold.
Now, the company plans to close all of its stores as part of its second bankruptcy filing. As a result, over 3,000 employees will likely lose their jobs. The report indicated that the company is facing $82 million in debt, and only had $6,000 in cash at the time of the second bankruptcy filing.
It can certainly be disheartening when a company faces difficult financial times, but it is becoming more and more common. If Louisiana business owners are struggling with substantial debt, they may also consider filing Chapter 11 bankruptcy. In order to determine whether this step could suit their circumstances, concerned business owners may wish to enlist the help of experienced attorneys who could review the details of each case and determine the most appropriate steps for handling the financial predicaments.