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Pier 1 Imports, Ruby Tuesday, Stein Mart, and the list grows… By: Scott France, Esq. France Law Group, LLC So is this the new normal? Online shopping, Netflix, and takeout cuisine? When can we return … Read More
Pier 1 Imports, Ruby Tuesday, Stein Mart, and the list grows…
So is this the new normal? Online shopping, Netflix, and takeout cuisine? When can we return to our favorite shopping malls, catch a new release movie, and get a bite to eat at the nearby bistro? We’re not the only ones asking these questions. Iconic businesses are keeping their fingers tightly crossed too as they try to avoid filing for bankruptcy relief.
The Coronavirus Pandemic has been brutal on both individuals and businesses. But just because a large business files for bankruptcy relief, it doesn’t necessarily mean that they are going out of business. In many cases, such businesses are filing for Chapter 11 bankruptcy, which essentially is a restructuring process. While Chapter 11 bankruptcy may help a business avoid closing its doors, it usually signals that changes are coming. Business survival in the Coronavirus Pandemic era means adapting to emerging market trends, such as online shopping, state mandates, and social distancing.
Chapter 11 bankruptcy differs from it’s cousin Chapter 7 bankruptcy. Most of us are familiar with Chapter 7 bankruptcy and how it wipes out an individual’s unsecured debts, including medical bills and credit card debts. Chapter 11 bankruptcy does not inherently mean that a business is shutting down. Typically the business is reorganized and a plan for its restructuring is formed so that the business can continue. Chapter 11 bankruptcy is typically associated with large businesses but it is possible for individuals with excessively large incomes and other financial holdings, such as famous athletes or Hollywood celebrities.
Below is a partial listing of iconic businesses that have filed for bankruptcy relief during the Coronavirus Pandemic. While the list continues to grow, we are starting to see the Coronavirus Pandemic’s effect on some familiar Toledo, Ohio stores.
Related Article: “From Friendly’s To J. Crew, Mainstreet Bankruptcies Continue.” by Emily Pandise, NBC News.
About The Author: Scott France is a bankruptcy attorney in Toledo, Ohio. As the owner of France Law Group, Scott France has represented many debtors in search of a fresh start.
Scott E. France, Esq.
FRANCE LAW GROUP, LLC
6545 W. Central Avenue, Suite 203
Toledo, Ohio 43617