Owning and operating a business presents many challenges. Business owners in Maryland typically want to keep up with competitors, prompting a need for additional revenue. Making the decision to expand operations to new locations could result in major profits, but there may be some risk involved as well. If the expansion does not go as well as intended, the company may be in need of financial reorganization.
A major hunting and fishing chain has recently found itself in a similar situation. With increasing competition in its area of business, the company made the decision to expand. Unfortunately, the newly opened stores failed to attract the amount of business the company had predicted. It now has millions of dollars in loans to account for, and may be in need of assistance to protect the longevity of the business.
Many companies who have faced this type of situation have sought relief by filing for Chapter 11 bankruptcy. This type of bankruptcy can protect a business from creditors while allowing it to continue operations. Businesses often use this time to reorganize assets and liabilities. This period may help a company to succeed in stabilizing profits, and allow it to pay debts over a given amount of time.
Many companies experience periods of financial struggle. Chapter 11 bankruptcy can be beneficial in many ways, allowing a company time for financial reorganization. Since this process can often be complex, seeking legal assistance is advisable. Business owners in Maryland who are facing a similar situation often speak with an experienced bankruptcy attorney for advice on how to achieve the best overall outcome for the company.
Source: twincities.com, “Report: Gander Mountain preparing bankruptcy filing”, Feb. 10, 2017