Although it may seem as though the economy is starting to pick up, many companies still struggle with day-to-day business. Unemployment, credit card debt, divorce, college tuition and other factors can cause consumers to spend less. When this happens, businesses suffer. They lose profits and become unable to pay bills. The next step? Bankruptcy. While bankruptcy may seem like a bad word to some business owners, Chapter 11 bankruptcy - a type of bankruptcy for businesses - can actually help a struggling company stay afloat.
To many Tennessee residents, nothing can seem more devastating than having to file for bankruptcy. However, bankruptcy no longer carries the stigma that it once did. Many individuals and companies have not only survived bankruptcy, but thrived from it. Entrepreneurs who are seeing their businesses quickly lose money may want to consider the benefits that a commercial bankruptcy can offer.
According to the government, the sale of the nation's oldest privately owned clothing maker, now bankrupt, may be happening too quickly and may not be in the best interests of the bankrupt company's creditors. The clothing company has been making tailored suits and clothing in Cleveland, Tennessee since 1880. The privately owned company is currently operating under bankruptcy court supervision. The company hopes to emerge from bankruptcy after a proposed $2 million sale to a local Cleveland millionaire who says he wants to rebuild the business and save Cleveland's oldest company.
Tennessee residents have many options when it comes to purchasing sandwiches. Quiznos was once a contender in the restaurant business about a decade ago, but increased competition has led to declining sales. The company now owes $570 million to creditors and has decided to file for commercial bankruptcy.
Many Tennessee residents have heard the news about the chemical spill that left 300,000 West Virginians without drinking water. Businesses in the area were forced to close for several days. Even schools had to be shut down and residents could only use their water to flush toilets. The company blamed for the spill has been sued by multiple businesses. However, the company is protected from lawsuits - for now - because it filed for business bankruptcy.
When Tennessee consumers file for personal bankruptcy, they do it in hopes of getting a fresh start in terms of their credit score. However, the results are not always so positive when business have to file for bankruptcy. Once a company files for business bankruptcy, it often means the end -- even when the company has been around for decades.
No Tennessee business owner creates a business with the notion that it will eventually go bankrupt. However, economic hardships can plague a business -- even a successful one -- at any time. Popular retailer J.C. Penney looks to be heading toward a commercial bankruptcy. Can the company turn itself around and become profitable again?
As many of our Tennessee readers may know, nobody is immune from financial difficulties. According to gossip magazines, many celebrities have filed for bankruptcy. Entire towns have filed for bankruptcy. Even some of the nation's largest corporations have felt the sting of the economy and lost millions of dollars in order to stay afloat. One of these companies is Eastman Kodak Co - most commonly known as Kodak. The company filed for business bankruptcy in January 2012 and is just now starting to come back into its own.
As many Tennessee business owners know, not all companies succeed. Whether it's a small business trying out a new product in the market for the first time or a larger one overextending itself financially, bankruptcy can happen to any company at any time. Although no company wants to succumb to bankruptcy, learning about the options available can make business bankruptcy easier to handle.
A Tennessee communications firm has filed for commercial bankruptcy in response to a monetary judgment of $47.4 million against one of its owners. A jury awarded the $47.4 million in a lawsuit brought by the trustees of Equity Media Holdings Corp, a company already in bankruptcy. The lawsuit claimed that the purchase of Retro Television Network by Luken Communications for $18.5 million was a fraudulent transfer as the company had been valued at $115.8 million several months before the purchase.