Tag Archives: chapter 11
American Suzuki Motor Corp. filed for Chapter 11 bankruptcy last week and said that it will cease selling automobiles in the U.S. as part of a plan to restructure its business, according to the Associated Press. The AP reports that in documents filed with the U.S. Bankruptcy Court in the Central District of California, the company estimated that its debts and liabilities range from at least $100 million to as much as $500 million. The company is the only distributor of Suzuki vehicles in the continental U.S. According to the AP, the company has enough cash to operate during the restructuring and intends to honor all car warranties and buyback agreements. The company said it will work with its car dealerships to help them transition into parts-and-service operations. “Nothing changes, there just won’t be any new cars,” Chris Chermak, a Suzuki car dealer, told the AP. “We’re not going anywhere.”…
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According to the Chicago Tribune, Bakers Footwear, which operates 215 women’s shoe stores in malls across the country, has filed for Chapter 11 bankruptcy. The Bakers bankruptcy filing took place two weeks ago. The Chapter 11 bankruptcy will allow Bakers to remain in control of its business operations while searching for investors or buyers. According to the Tribune, “Sales at St. Louis-based Bakers’ mall-based stores have fallen 5.9 percent from last year, squeezing the company’s cash and causing it to default on a loan.” According to the paper, Bakers has assets worth $41.9 million and debts of $59.5 million. “Bakers’ weak sales this year pushed it into default on a $30 million secured credit facility it entered into in June with Crystal Financial LLC,” the Tribune reported. As part of the bankruptcy filing, the paper reports that Bakers must have a financial plan in place by November 2 or begin…
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Popular southern rock band Lynyrd Skynyrd’s Las Vegas restaurant has filed for Chapter 11 bankruptcy. Lynyrd Skynyrd BBQ & Beer, located on the Las Vegas strip, filed for bankruptcy last week only two months after opening. “Although Lynyrd Skynyrd was not the proprietor of the restaurant, the band licensed their name and likeness for the ‘BBQ and Beer style’ concept. Unfortunately, the project was launched during a downturn in the economy,” the band said in a statement. The statement added, “The band was not involved in the day-to-day operations of the property [but] the band and management are very disappointed the venture did not have a positive result.” According to court documents, Lynyrd Skynyrd BBQ & Beer owes $677,000 to creditors. Typically, through Chapter 11 bankruptcy, a business is able to retain control of its day to day operations and remain open while looking for potential buyers; however, a U.S….
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