Reduced sales and profits often cause a business bankruptcy, although tax problems are also a common reason for having to confront tough financial times. Business owners typically declare a business bankruptcy with a Chapter 11 filing, and readers in Cleveland will be interested in the following bankruptcy case that will allow the business to continue operating.
Pinnacle Airlines is currently going through a Chapter 11 bankruptcy, and observers have been speculating for months that the company may move its headquarters. Pinnacle finally announced its relocation plans on Jan. 24.
The president of Pinnacle said the company will move from Memphis to Minneapolis-St. Paul by May at the earliest. The number of employees who will be affected by the move has not yet been determined. The company president added that the cost of the property lease was an important factor in the decision to move.
Pinnacle’s president said that the states of Tennessee and Minnesota both offered financial incentives to the company, which also considered the operation alignment and labor pool in making its decision. The details of Minnesota’s incentives packages have been in negotiation since September 2012, and it was stated that Pinnacle will lease 55,000 square feet of space currently leased by Delta Airlines.
This case illustrates the kinds of restructuring decisions many business owners in Tennessee have to make when they file for bankruptcy under Chapter 11. These decisions aren’t always easy, and it is crucial to know exactly which option is best for your particular situation.
Source: Finance & Commerce, “Pinnacle Airlines to move HQ to Twin Cities,” Burl Gilyard and Mark Anderson, Jan. 24, 2013