Tag Archives: chapter 11

School Specialty Inc. Files for Chapter 11 Bankruptcy

School Specialty Inc. (SCHS), a once-popular distributor of non-textbook school supplies including art materials and classroom equipment, filed for Chapter 11 bankruptcy last week. According to Bloomberg News, the company based in Greenville, Wisconsin, listed $494.5 million in assets and $394.5 million in debt in its bankruptcy paper filed in the U.S. Bankruptcy Court in Wilmington, Delaware. “We fully expect to continue normal business operations, providing quality, value-driven education products and excellent customer care and programs,” the company’s chief executive officer, Michael P. Lavelle said. Bloomberg reports that the company has an asset purchase agreement with Bayside Capital Inc. for a proposed sale with competitive bidding supervised by the court, and Bayside will provide a $50 million loan. Much like a Chapter 11 bankruptcy, a Chapter 13 or Chapter 7 bankruptcy can help people by stopping collection attempts. If your financial situation is a problem, contact our Washington DC and…
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U.S. Atari Files for Chapter 11 Bankruptcy

Video game maker Atari filed for Chapter 11 bankruptcy protection last week in an attempt to separate from their French parent company, according to the Associated Press. In 1977, Atari introduced the 2600 gaming system that sold more than 30 million units and spawned hit videogames like Space Invaders, Pitfall!, Missile Command and Pac-Man. In a statement, Atari said its U.S. operations has shifted its focus to digital games and licensing, including developing mobile games. CEO Jim Wilson said the bankruptcy was the “best decision to protect the company and its shareholders.” In its filing with the U.S. Bankruptcy Court in the Southern District of New York, Atari said it had $1 million to $10 million in assets and $10 million to $50 million in debt. It is seeking approval for $5.25 million in debtor-in-possession financing from investment firm Tenor Capital Management, according to the AP. Atari said it intends…
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Backyard Burgers Inc. Files for Chapter 11 Bankruptcy

Back Yard Burgers Inc., a popular fast food restaurant, filed for Chapter 11 bankruptcy last week, according to Bloomberg. The Nashville-based company has 20 restaurants in various states. According to its bankruptcy paperwork, the company is $50 million in debt and has assets of $10 million. The filing took place in Delaware and only includes restaurants owned by the company, not stores that are owned by franchisees, according to Bloomberg. The company’s chief executive officer, James Boyd Jr., said it has reached a settlement with its creditors, and the bankruptcy was prearranged. “This agreement is the culmination of an ongoing plan to improve the company’s operations by restructuring debt, addressing underperforming locations and identifying opportunities for growth,” Chief Executive Officer James E. Boyd Jr. said in a statement. While Backyard Burgers’ filing may seem like it does not represent how bankruptcy can help a citizen, it does. Much like a…
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