Michigan business owners know that expanding operations can be a good and necessary step to maintain their position in the marketplace and even grow. Conducting an expansion can be a bit of a gamble: The rewards can be big, but an expansion can also be harmful if the timing or execution isn't right. One area business seems to have had this kind of experience.
Last week our Wayne County bankruptcy law blog looked at a major filing by Trump Entertainment Resorts. The company sought Chapter 11 protection, although there was some concern over whether the judge might convert the filing to Chapter 7 given challenges involving the repayment plan. If this seemed somewhat far removed from Michigan, let's look this week at a commercial bankruptcy case closer to home.
Sometimes a bankruptcy case involves a small business struggling to keep the lights on. Other cases involve a major business bankruptcy with much more complex business bankruptcy issues to address. In either case, however, there are some underlying fundamental issues that Wayne County residents should understand, no matter what point they are at in their businesses.
This blog has discussed commercial bankruptcy in a number of recent posts on. In particular, in a post from two weeks ago, we highlighted how the automatic stay associated with Chapter 11 bankruptcy helped one business owner renegotiate some debts that he might not have been able to otherwise. Chapter 11 is often referred to as a reorganization bankruptcy, but our Wayne County readers may have some questions about what exactly this means for them. Following is some general information regarding that question, which should not be interpreted as specific legal advice.
The cupcake craze of recent years swept Michigan just like every other part of the country. For one little East Coast bakery that first opened its doors in 2003, the national sweet tooth opened up opportunities to expand the business, even going public less than 10 years later. Crumbs was famous for its calorie-packed cupcakes, which sold for around three or four dollars apiece.
We've discussed a number of business bankruptcy cases in recent weeks on our Wayne County bankruptcy law blog. The latest involved a national restaurant chain emerging successfully from Chapter 11. However, one recent example of a commercial bankruptcy right here in Michigan highlights the importance of a sound reorganization plan when filing for Chapter 11, and the consequences of failing to develop one in the time allotted.
Just about a month ago, our Wayne County bankruptcy law blog talked about the case of a cosmetics company that made a major announcement. By choosing to pursue Chapter 11 bankruptcy, the company was going to try to reorganize and eventually resume operating without being held back by debt. Sound too good to be true? A major national chain restaurant has done just that.
A judge overseeing the bankruptcy process of discount clothing retailer Loehmann's has approved the sale of the company's inventory. Liquidators already bid on the inventory at an auction and the winner offered to pay 29.8 percent of the total value of the inventory, which is estimated to be worth about $51 million.
Any person may find him- or herself needing to file for bankruptcy for various reasons. In a tough business environment many business must also need to reorganize or liquidate assets.