Bankruptcy is often seen as a problem, but if you're struggling with money, the reality is that bankruptcy is actually a solution. It is one way that you can resolve your financial woes and get back to a stable place.
Business is always changing, so it's not unusual to see popular stores go bankrupt. Depending on the kind of bankruptcy filed, it may mean the end of an era for businesses or just a few months of restructuring.
A specialty chain in Maryland has recently filed for Chapter 11 bankruptcy protection. Seasons Kosher Supermarkets, which has eight stores in New York, Maryland and New Jersey, said it has obtained $6 million in funding to stock the stores, which will continue to remain open throughout the Chapter 11 process.
In the store's bankruptcy documents, it is shown that the company has around $42 million in liabilities and assets accounting for around $31 million. In 2018, the company showed revenue of around $63 million.
The chain has the goal of opening another store in Cleveland as well, but that is pending the outcome of this new arrangement. The stores have been seeing increased sales, but delays with new locations, costs and complications have made it difficult for the company to go on without restructuring. The report states that the company does have several interested investors, so it does not believe it will take long to emerge from the reorganization process.
All types of bankruptcy are available to businesses and individuals, depending on their needs. Filing doesn't necessarily mean the end of a business, for example, but it's important to look closely at your options.