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Remember these points about Chapter 11 bankruptcy

When your business isn't turning the profit it needs to remain in business, you have some difficult decisions to make. For some companies, filing for bankruptcy is necessary. A Chapter 11 bankruptcy filing involves restructuring the company's debts and assets to try to stay afloat.

Clothing maker changes hands after bankruptcy

Few people are aware that Cleveland, Tennessee is the home of one of the oldest men's clothing manufacturers in the United States. Even fewer people are likely aware that the firm has changed hands for the second time in five years. And yet fewer people are aware that the company plans to add 100 new jobs to make uniforms for the United States Army.

New partner allows local brewery to reopen

One of the principal reasons that small businesses in Tennessee seek bankruptcy protection is the lack of adequate operating capital. The product is valued by consumers, the employees enjoy the work, marketing and distribution are sound, but the company lacks the money to expand its share of the marketplace. In such cases, an aggressive competitor can erode the company's market share and force it into commercial bankruptcy. While bankruptcy seems like a dire fate for any business, some companies facing bankruptcy are able to find new sources of financing and are able to reopen instead of liquidating its assets.

What is a voidable preference in bankruptcy?

For most residents and small businesses in Eastern Tennessee, the bankruptcy process appears to deal solely with the debts owed by the petitioner. One class of debts, however, focuses on payments made to creditors before the bankruptcy proceeding begins. These debts are called "voidable preferences" for the very good reason that certain payments to creditors may be voided by the bankruptcy trustee.

Perkins restaurant chain files for bankruptcy

Not every business in Tennessee will see financial success, especially those in the cutthroat restaurant industry. For example, the company that owns the restaurants Perkins and Marie Callender, along with Foxtail Foods which supplies baked goods for these chains has filed for bankruptcy, despite a recent increase in sales. The company has $115 million in secured debt, and experienced financial troubles in 2017 and 2018 due to declining sales and rising labor and commodity costs. And although as of June Perkins' sales increased 5.1 percent, it was not enough to prevent the company from filing for bankruptcy, although this stabilization may make restructuring an option.

Who is liable for paying back debts in a Chapter 11 bankruptcy?

It may seem like we hear about brick-and-mortar stores filling for business and commercial bankruptcy more often now than ever before. It is important for people in Tennessee to understand the basics of Chapter 11 bankruptcy, which is the type of bankruptcy many of these businesses choose to turn their financial future around.

Floral delivery service FTD files for Chapter 11

Sometimes a business can get into a terrible financial mess, with debts it can't control, but all it needs is a little help. Chapter 11 is a way for a business to get its debt under control and reorganize to get into better financial shape.

Sears shareholders sue former CEO, claiming he looted the company

The saga of the Sears bankruptcy is continuing with another lawsuit against the former chairman, Eddie Lampert, claiming that Lampert and his associates siphoned off billions of dollars in assets from the company and purposely drove it into bankruptcy. Sears stores were scattered across Rockland County and the state of New York, causing many to wonder how the chain could have failed. The plaintiff in the lawsuit, Sears Holdings Corp., is overseeing the liquidation of Sears' assets and is representing the interests of the company's shareholders.

Small Tennessee hospital seeks Chapter 11 protection

Small community hospitals all over the United States are facing severe financial pressure to remain solvent. The pressure comes from two sources: the expansion of large medical companies and increasing costs. These factors have forced a small hospital in western Tennessee to go through a forced business bankruptcy under Chapter 11.

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