Monthly Archives: September 2017

Perfumania to Shutter Stores in Chapter 11 Bankruptcy

Perfumania, a staple of American malls, has announced that it will be closing 64 stores and filing for bankruptcy. The company is known for its discounted prices on high-end perfume brands, such as Burberry and Dolce & Gabbana. 162 of its stores will remain open as the company attempts to restructure its debts and avoid becoming obsolete. As e-commerce slowly eats away at brick-and-mortar businesses, Perfumania hopes to avoid what has happened to so many other retail businesses. What Is Chapter 11 Bankruptcy and How Can It Save My Business? The main goal of a Chapter 11 bankruptcy is to preserve a business because long-term revenues will be worth more than the value of liquidating the business. Through Chapter 11 bankruptcy, a business owner can restructure finances through a court-approved bankruptcy plan. It helps the business owner reduce obligations and modify payment terms and can also allow debtors to sell…
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