A business that owns over 150 Applebee's franchises in different states, including several in Kentucky, recently announced that it filed for Chapter 11 bankruptcy. According to the company, their restaurants will be able to remain in operation while the bankruptcy is ongoing.
One clothing retailer with a presence in Northern Kentucky announced that it had successfully completed a Chapter 11 bankruptcy reorganization plan and was looking forward to a more profitable future. The end of the bankruptcy did not come without some cost to the chain, as it was forced to close down 100 stores nationwide and reduce its corporate staff. Moreover, there were some shifts in management that apparently came at the urging of the store's creditors, which ultimately signed off on the store's reorganization.
As a previous post here detailed, the retail market, which includes so-called "brick and mortar" clothing and other stores as well as restaurants, is a hard market to make a profit in right now. This is due in part to Amazon and other online retail outlets that offer customers the convenience of shopping in their own homes and having items delivered to their doorsteps.
Although physicians are known for making a lot of money, they too can run in to financial problems and may even find themselves in a position where filing for bankruptcy makes the most sense.
Because most of the Chapter 11 bankruptcies that make the news are larger and oftentimes nationally known organizations, some owners of smaller Louisville, Kentucky, businesses may think that a Chapter 11 bankruptcy is just not for them.
Some creditors of a nursing home chain are seeking to force the nursing homes in to a bankruptcy proceeding so that they can have a chance at collecting on business debt the nursing homes owe them.
According to at least one source, retailers are in for another tough year in 2018 which could be substantially worse than the retail sector's poor showing in 2017.
As previous posts on this bog have discussed, there are many different ways a Louisville business that finds itself in financial trouble can choose to handle mounting debt in the face of sluggish revenue.
A bankruptcy judge approved the plan of the nationwide retail toy seller, Toys R Us, to pay its top leadership bonuses of up to $14 million, provided they meet certain sales goals, particularly over the Christmas season.
It is very likely that few businesses go into operation with the idea that they will go bankrupt. Generally business owners are looking to run profitably for the foreseeable future. However, the possibility of failure always exists, as business is a risky proposition even under favorable circumstances. Further, the use of business bankruptcy may be in the best interests of the business' owners and investors in many cases, as it may allow the business to reorganize and shed useless debt. Of course, a business' creditors may not always see it that way, and sometimes will seek to minimize the possibility of a bankruptcy filing.