Category Archives: Chapter 11 Bankruptcy

Bankruptcy attorney provides information about Chapter 11 bankruptcy for businesses.

Bankruptcy Success Stories: Gymboree and More

Gymboree Group Inc., the owner of children’s clothing chain Gymboree, recently announced it was emerging successfully from Chapter 11 bankruptcy. Earlier this year, Gymboree downsized the number of stores it has, shedding just under 350. It entered into bankruptcy with a plan, was approved by creditors and is now on track to begin repaying its debts. Now, the company must maintain market share and profitability in an increasingly competitive retail environment. Business Bankruptcy Success Stories Some companies, upon filing for bankruptcy, simply fade away into the annals of failed business history. But bankruptcy can be a very valuable tool to help a business owner preserve the company. Here are some examples of successful business bankruptcies and where they are now. American Airlines filed for bankruptcy, as many major airliners have at one point or another, in 2011. Three years later, American finished a merger with U.S. Airways Group to form…
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Will the Toys ‘R’ Us Bankruptcy Hurt Other Companies?

It was only a few weeks ago that Toys ‘R’ Us announced it would file for Chapter 11 bankruptcy, just shy of the holiday season. But Toys ‘R’ Us may not be the only company to suffer as it takes this step to restructure its debts. For toy manufacturers Hasbro and Mattel, Toys ‘R’ Us is the second biggest customer (behind Wal-Mart). Will the bankruptcy hurt those companies? When the first rumors started to swirl regarding a potential bankruptcy filing by the retail toy giant, shares for Mattel and Hasbro fell slightly. But when the rumors turned out to be true, Hasbro and Mattel bounced back. And going into the holiday season, it seems they will do just fine. The two companies have lowered their dependence on brick-and-mortar toy stores as online shopping becomes more and more popular. However, some questions remain. Mattel and Hasbro are Toys ‘R’ Us’ second…
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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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