Wisconsin businesses small and large will sometimes face financial issues. This can happen for a variety of reasons and force them to consider whether a commercial bankruptcy will be beneficial or not. In some cases, these businesses operations are not primarily located in Wisconsin, but has locations in the state. A decision on the part of the company to file for Chapter 11 or some other form of bankruptcy will have unavoidable implications even if the main office is located elsewhere. Understanding the benefits of a business bankruptcy is a key to making the determination as to the next course of action.
The department store Gordmans has moved forward with a Chapter 11 bankruptcy. The plan is to liquidate its stores. The chain has 106 locations and is based on Omaha, Nebraska. It has six locations in Wisconsin. The company informed its investors that there will be a liquidation of assets and inventory once the court gives its approval. No date for this to commence has been given. The stores plan to continue operating until throughout the process. The reason for the decision is because of the reduction of in-store sales as many customers have shifted to purchasing online. There have been losses for the last three financial quarters.
When starting a business, there are numerous aspects that must be considered. Finances, sales, investors, expansion are all part of the process. So too is it part of the process to make the decision that the business needs to reorganize or liquidate through a commercial bankruptcy. This is true in a large or small business. In some cases, a Chapter 11 is the wise course of action so the proprietor can close shop, move on and no longer worry about creditors and if the next day will be the last. In others, a reorganization is possible to get back on stronger financial footing. All circumstances are different and having a grasp on the best possible option can be accomplished by discussing the matter with attorneys who are experienced in all avenues of bankruptcy.
In this case, a chain department store has decided that it will end its operations and liquidate its assets. Although this is a larger business, its decision can be used as a guide for a smaller business to decide on how it should proceed. Regardless of the situation, a lawyer can be of great help when considering the alternatives with a business and if bankruptcy is the right solution or another way is preferable.
Source: greenbaypressgazette.com, “Gordmans files bankruptcy, will close stores,” March 13, 2017