Monthly Archives: September 2017

The Story Behind Toys ‘R’ Us and Its Bankruptcy

What happened to Toys ‘R’ Us? The retailer recently filed for bankruptcy protection. However, it intends to keep its stores open for the holiday season. The company hopes to use bankruptcy to restructure its debts, totaling $5 billion. Chairman and CEO Dave Brandon said that the financial flexibility afforded by bankruptcy will help the company strengthen its competitive position. Is it just Toys ‘R’ Us, though? Or is the potential failure of the big box toy giant a sign of things to come? Is the Retail Industry Dying? News stories were being written as early as February of this year pointing to Toys ‘R’ Us as the next potential victim of the fall of retail. That month, news came out that the company laid off between 10 and 15 percent of its corporate employees. Overall toy sales during the holiday season fell 2.5 percent in the U.S. and 4.9 percent…
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Should I File for Chapter 7 or Chapter 13 Bankruptcy?

When bankruptcy is filed in the U.S., it is typically one of two types: Chapter 7 or Chapter 13. How does one decide which to file for? Chapter 7 bankruptcy can be thought of as a liquidation bankruptcy. Chapter 11 can be thought of as a reorganization bankruptcy. Under Chapter 7, individuals and business entities are able to file. Under Chapter 13, only individuals, including sole proprietors, are able to file. Benefits of Chapter 7 Over Chapter 13 Typically, Chapter 7 is the quicker option. Under Chapter 7, you are able to keep most of your property, and you aren’t locked into a long-term repayment plan. If you don’t have a lot of property you wish to keep, or you have a lot of credit card, medical or personal loan debt and your family income doesn’t exceed the state median for a family the same size as yours, Chapter 7…
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Fyre Festival Files for Bankruptcy After Disastrous 2017

The Fyre Festival, as it was advertised, was a two-weekend music festival that was supposed to take place on the island of Great Exuma in the Bahamas. The event was widely promoted by celebrities including Kendall Jenner, Bella Hadid and Emily Ratajkowski. It was organized by Billy McFarland and Ja Rule. Prior to the festival, the showrunners experienced a wide variety of setbacks. And when the guests began to arrive, it was clear that the festival was not going to be the ultra-ritzy, fun getaway they were promised. Now, Fyre Fest LLC has filed for Chapter 7 bankruptcy. Fyre Fest allegedly promised repayments of $530,000 for investors’ investment in the festival. Fyre Fest was supposed to pay by May, but investors never got the money. The Fyre Fest Fiasco Guests paid at least $1,500 each for tickets to the swanky music festival. Advertising for the festival showed private jets, plush…
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