Business Bankruptcy Articles and Information
According to a recent CNN Money report, another giant retailer is struggling to keep its head above water. Gymboree, a children’s clothing retailer, recently filed for bankruptcy under Chapter 11 to restructure and attempt to stay in business. While the retailer is not at death’s door quite yet, Moody’s, a credit rating firm, recently included Gymboree in a list of 19 retailers facing “financial distress”. Seeking relief under Chapter 11 shows the company has been struggling for some time. According to the report, Gymboree reported a $324 million net loss for the three-month period that ended in January of this…Read More
CNN Money recently reported on the continuing challenges facing retail stores. According to the article, more than 300 retailers have filed for bankruptcy this year. This represents a 31% increase over last year. And while many of these bankruptcy filings are small local retailers, there are some big names on the list. Some of the larger retailers include Gymboree (children’s clothing), rue21 (teen’s clothing), Payless ShoeSource (discount shoes), Gander Mountain (hunting/outdoor retailer), RadioShack (for the second time since 2015), HH Gregg (appliances, electronics and furniture), Wet Seal (teen’s clothing and second time since 2015), and The Limited (women’s clothing). Filing…Read More
Bloomberg news is reporting that retail stores such as clothing stores, electronic sellers, and department stores are filing for bankruptcy protection at a record place in 2017. The rise in filings is attributed to a drop in traditional walk up retail business due to online retailers. 14 retail chains have stated they will seek bankruptcy protection in the year 2017 so far which is almost the same amount of retailers who sought bankruptcy protection for the entire year of 2016. Many retailers are closing stores to eliminate the cost of retail space and concentrate their efforts on online business. The…Read More
I tend to be a nostalgic person. I recall stories in my childhood told by my parents and grandparents about going downtown to the big department stores to shop at Christmas. Everyone’s stories always included a visit to the candy counter. I am not old enough to remember any of the downtown establishments they reminisce about except I remember Sears. I remember it because of one thing, the candy counter. The downtown location closed when I was still in elementary school and moved to the new local mall that opened. What a great place! The mall was “the” place to…Read More
Family Christian Stores has announced that it will be closing all 240 stores. This company has been in business for 85 years. The company claims that the reasons for closing all stores are due to “changing consumer behavior and declining sales”. Family Christian Stores is a non-profit and one of the largest local providers of Christian products. The company has not announced when the stores will be closed. With the growing trend of digital products, the physical demand for books have rapidly declined. Students in schools are even using iPads instead of physical books to cover various school subjects. Personally,…Read More
Payless Inc. is reportedly discussing a restructuring plan with its lenders. The restructuring plan would involve closings about 1000 of its stores. Currently, Payless operates more than 4400 stores around the country. Shoe Seller May Be Forced to File Bankruptcy According to sources familiar with Payless’ financial situation, the shoe seller might be forced to file bankruptcy if it is not able to work out a restructuring plan with creditors. It recently hired a law firm, Kirkland & Ellis to examine its $600 million debt load and look at ways that debt can be managed. Much of this debt was…Read More
Hyundai is one of Montgomery’s biggest employers where more than 3,000 team members are employed with high-paying jobs and full benefits. Additionally, more than 35 tier one suppliers are located in seventeen counties across Alabama. Further there are 78 total suppliers located throughout North America to support the Hyundai plant. Altogether, these suppliers created 7,000 additional jobs by Alabama based suppliers according to Hyundai’s website. President Trump’s campaign made threats to trash the North American Free Trade Agreement or impose stiff import tariffs to keep more jobs at home. Mexico is attractive to the automotive industry due to low operating…Read More
After serving the Shoals area for close to 15 ½ years, Best Buy has announced it will close its Florence, Alabama store located at 398 Cox Creek Parkway on February 25, 2017. Best Buy, Co. Inc. is an American multinational consumer electronics corporation headquartered in Richfield, Minnesota. Best Buy, famous for its “Geek Squad”, was named “Company of the Year” by Forbes in 2004. It was founded by Richard M. Schulze and Gary Smoliak in 1966 as an audio specialty store with the original name “Sound of Music”. In 1983, Sound of Music was renamed Best Buy Company, Inc. and…Read More
A discharge is one of the most important functions of bankruptcy. It is what releases a debtor from personal responsibility for his debts and helps provide a debtor with a “fresh start.” The Bankruptcy Code allows a debtor’s discharge to be denied in certain circumstances, and the Supreme Court will soon decide an issue concerning one of these circumstances. On March 1, 2016, the Supreme Court heard oral arguments in the case of Husky International Electronics, Inc. v. Ritz, No. 15-145. The issue in this case is whether false statements are required to trigger the Bankruptcy Code’s bar to discharge…Read More
Core Media Group, the company responsible for the hit show American Idol, has filed for Chapter 11 bankruptcy protection citing deterioration in its financial performance. This comes on the heels of the show concluding its 15th and final season. Core is also responsible for So You Think You Can Dance. Some may find it hard to believe that a company responsible for two shows with such a strong television presence could be struggling financially, but profits have decreased for some time. Loss of Earnings and Sponsors According to USA Today, earnings for Idol fell $15 million in 2014 and total…Read More
