Many Tennessee businesses that are considering bankruptcy have a number of continuing contracts, such as a supply contract, a real estate lease or any contract in which both parties have unperformed obligations. The bankruptcy code accords such contracts, known as executory contracts, a special status: the debtor in a business or commercial bankruptcy may either affirm or reject any such contract. The central question faced by debtors and their contracting partners is whether a given agreement is, in fact, an executory contract.
Romano's Macaroni Grill, an upscale Italian restaurant chain that once had locations sprouting up all over the country, has announced it will enter a Chapter 11 business bankruptcy in order to restructure its debts so that it might be able to continue to operate.
The financial troubles of the major retail toy store chain Toys "R" Us have become the subject of speculation in the news media of late, with even some insiders in the company saying that the former king of toy stores is considering a Chapter 11 bankruptcy filing.
Business owners in Bradley County, Tennessee, may not be able to quite identify with the news stories announcing the latest large commercial bankruptcy, especially if the business is nationwide and worth millions of dollars. Even if these owners are themselves in financial distress due to business debt, filing a Chapter 11 bankruptcy, which large businesses use, may seem a little out of reach or like overkill.
This blog recently discussed bankruptcy options for businesses, which is an important topic for struggling companies to be familiar with. A Chapter 11 business bankruptcy filing typically allows the company to continue under its current management. Unlike a Chapter 7 bankruptcy filing, which is an option for companies going out of business to consider, a Chapter 11 business bankruptcy filing is an option to help the company remain in business and return to profitability. After the bankruptcy filing, an automatic stay goes into effect halting creditor collection actions.
Bankruptcy options are designed to help both struggling individuals and companies based on their unique situation and circumstances. With regards to commercial property owners, businesses dealing with financial problems might find it resourceful to consider bankruptcy and how the process could offer them a fresh start.
Chapter 11 bankruptcy is a bankruptcy process that allows the struggling business to reorganize its debts and also liquidate assets to repay debts. Once the filing party has filed the bankruptcy motion, they remain in possession of the business and its assets during the business bankruptcy process. The goal of the process is to get the business back on its feet.
The bankruptcy process can be an important resource for struggling businesses to consider. While it is a difficult process to initiate and certainly a challenging decision to make, it can often be the best choice and option for a business struggling to keep afloat.
This blog has recently discussed the benefits of commercial bankruptcy for struggling businesses. It is helpful to keep in mind that bankruptcy is also available to individuals struggling with debt. Gander Mountain, a sporting goods retailer with a presence in Tennessee, recently filed for Chapter 11 bankruptcy protection. The store located in a neighboring Tennessee community just east of the Cleveland area is scheduled to close in the next month. The 50,000 square foot store opened in 2014 and will now close as part of the bankruptcy process.
This blog recently discussed the helpful nature of Chapter 11 bankruptcy for struggling businesses. Chapter 11 bankruptcy can be a complex process, so it is important that businesses considering the commercial bankruptcy process understand how it works before filing.