Customers upset after store owners claim bankruptcy

On Behalf of | Jan 13, 2023 | Bankruptcy |

When a financial crisis hits a business owner, the company may have several options available to obtain debt relief. For instance, in some cases, it is merely a matter of cutting overhead costs and unnecessary spending that enables a business to get things back on track when financial problems arise. In other situations, additional measures are needed, such as filing for bankruptcy in a Tennessee court.  

This is apparently what one business owner did, which has reportedly caused distress to several customers. The business in question sold safes. A woman who claims to have paid $1,000 for a safe says her product never arrived and she did not receive a refund.  

The company closed down and left a notice on the door 

Owners of the safe store are said to have posted a notice on the door letting customers know how to request a refund of their money. Bankruptcy is a valuable financial tool that many business owners use when their debt far outweighs their assets. In some cases, it enables business owners to alleviate debt, then start afresh from the ground up to rebuild a new business.  

If a Tennessee business owner encounters complaints from a consumer in the midst of filing for bankruptcy, it may be best to seek legal support, rather than try to handle the issue alone. Having legal support creates documentation of all relevant issues, which may come in handy if a case winds up in court. A business owner will also want to make sure that he or she clearly understands bankruptcy laws and any obligations that exist regarding customers who ordered products before a bankruptcy petition was filed.  

Archives

Begin a free consultation:

Our Office Location:

Richard Banks & Associates, P.C.

393 Broad Street Northwest
Cleveland, TN 37311
Toll Free: 866-596-8527
Phone: 423-244-0009
Fax: 423-478-1175

Follow us on Facebook
Follow us on LinkedIn