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Last Call Guarantor LLC is most recent chain to file Chapter 11

In the past, many in Kentucky may have considered filing for bankruptcy protection to be the end of the road for a company. However, in recent years, more and more companies have started to look at filing Chapter 11 as a way to rid themselves of unprofitable holdings and emerge healthy and viable. Recently, Last Call Guarantor LLC, a chain that includes the brands Fox & Hound, Bailey’s Sports Grille and Champps, became the fourth such company to file for bankruptcy this year.

The decision to file for Chapter 11 came after the chain faced a competitive landscape that suffered from over-expansion. As the economy has healed, the restaurant industry experienced a sharp increase in new restaurant openings over the past few years. Last Call found its business at a point at which it had assets of $10 million to $50 million and debts between $100 million and $500 million.

When faced with this difference, many companies choose to try to raise assets by increasing prices. However, experts caution that this method can become a “death spiral,” which can hasten a company’s demise. Though Last Call has filed for bankruptcy protection before, this latest filing may be a way for the company to restructure and get back onto a financially healthy path.

The decision to file for Chapter 11 bankruptcy can be a difficult one for many companies in Kentucky. However, it can also be a way for a company who is in debt to make a fresh start when faced with severe financial challenges. No matter what circumstances a business is facing, it may be beneficial to speak with an attorney whose practice focuses on bankruptcy law. An attorney will be able to evaluate a client’s unique financial situation and discuss the various forms of bankruptcy or debt relief that are available.

Source: wfaa.org, “Why a Dallas restaurant company’s bankruptcy is part of a trend“, Korri Kezar, Aug. 10, 2016

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