Most shoppers enjoy a sense of comfort in knowing that when they go to a retail center they are likely to see some of the stores that have been there since they were kids. Stores such as Radio Shack or Payless ShoeSource are perfect examples. But today, if you are looking for an electronics component or kit, you might be surprised to see that the Radio Shack location you’ve taken for granted over the years is now closed, and just when you needed it! As the electronics retailer files for bankruptcy a second time this year, you may find yourself turning to Amazon for good-just like so many others. Payless has also recently announced that they are filing for Chapter 11 and shutting nearly 400 stores in the US and Puerto Rico.
Major Retailers Have Already Filed for Bankruptcy in 2017
Online shopping and other changes in business practices today are major factors in the demise of many well-known corporations. Adjustments must be made to adapt in the modern business world-and especially retail. If that’s not possible for a large company like Radio Shack or The Limited, then they may begin cutting jobs, closing stores, and selling off inventory and brands.
As Forbes reports, more retailers have already filed for bankruptcy this year than they did at the peak of the Great Recession. The message is clear: those who have strong balance sheets and are good at adapting have a better chance of surviving. It’s also clear that the rules have changed in the retail industry as consumers have so many shopping options-all geared toward their convenience.
Chapter 11 Can Strengthen a Company for the Long Haul
Companies such as Payless are making it clear that while they are closing some stores(400 out of 4,400), they expect Chapter 11 to give them the time to reorganize debts and restructure their corporation so they can come back stronger for the future. Filing for bankruptcy may allow them to change the direction of their sales and marketing efforts, putting more into online offerings and exploring opportunities in other areas of the world also. Many other large retailers may not be filing bankruptcy, but they are closing locations and making the necessary cuts to remain solvent.
Reorganization May Be the Best Option for Your Business
If your business is struggling and you are considering filing for Chapter 11 bankruptcy, you may be concerned this means you are through. Reorganizing your debts, however, may enable your business to rebound more successfully than you ever imagined. The first step is to reach out to an experienced law firm like Levitt & Slafkes, P.C. so you have all the necessary information before you make the decision to file. If you do so, the automatic stay goes into effect immediately, giving you some breathing room as all collections activities are halted-including threat of foreclosure or repossession of commercial property. After that, a reorganization plan for paying back creditors over time must be created within 120 days and approved by the court.
Contact Us for Help Now
Please contact us now for the answers to all your bankruptcy questions. Our experienced attorneys will review your case and explain your options to you, as well as helping you navigate through the filing process.
Call us at 973-323-2953, or contact us online to schedule a free consultation.