With the increase in availability that goes along with online shopping, businesses in Ohio and elsewhere could be struggling to keep up with the competition. Larger chains could already be ahead of the curve, potentially leaving smaller businesses to struggle though periods of financial difficulty. While in some cases a company may be able to overcome these challenges on its own, in others, assistance could be required, such as financial reorganization through Chapter 11 bankruptcy.
Chapter 11 bankruptcy can provide a business with protection from creditors while it works on forming a plan to repay debts over time. A company may also be allowed to remain operational during this period, while it focuses on strategies to restructure finances. A popular shoe store recently completed the process of Chapter 11 bankruptcy, and claims that it was able to shed a substantial amount of debt and begin moving in a more successful direction.
Part of its plan for reorganization apparently involved closing numerous locations. When certain locations do not bring in the profit previously expected, subsequent losses could contribute to financial struggles. Closing less profitable locations and focusing on successful ones is a strategy that may have helped numerous businesses restructure operations and protect their longevity.
Overwhelming amounts of debt can place a business under significant financial stress. When facing a similar situation, business owners in Ohio could find it beneficial to speak with an attorney for advice on available options for protection and relief. An attorney can address a client's financial concerns and assist in pursuing a healthier financial future through the necessary channels, including Chapter 11 bankruptcy.
Source: USA Today, "Payless emerges from bankruptcy court protection after closing more than 673 stores", Kevin McCoy, Aug. 10, 2017