Many businesses in Maryland and elsewhere have fallen on hard times at some point in operation. Financial struggles can come in numerous forms, each of which could threaten the longevity of a business. A famous French bistro in another state has recently filed for bankruptcy amidst legal issues, likely in hopes of reclaiming financial stability through reorganization.
According to reports, the famous bistro Church and State has filed for Chapter 11 Bankruptcy after a lengthy legal battle has threatened its financial stability. The issue is reportedly in connection with a lawsuit filed by a former employer accusing the company of failing to pay wages for time worked. The lawsuit has reportedly placed the company under significant financial burdens, eventually leading to a need for relief through bankruptcy.
In Chapter 11 Bankruptcy, a business could obtain protection from creditors while staying open for business. During this period, a company can form a plan to repay certain debts over a given period, while attempting to maintain profit by remaining operational. At the same time, a business may also attempt to renegotiate leases and contracts, and certain debts could also be eligible for discharge during bankruptcy proceedings.
Business owners who face financial hardships may find the period of financial reorganization allowed through Chapter 11 bankruptcy to be beneficial to the longevity of the company. However, the process can be complex, potentially spurring a need for assistance in its navigation. By speaking with an experienced bankruptcy attorney, a client in Maryland could obtain advice on available options and assistance in protecting the future of his or her business through the necessary outlets.
Source: eater.com, “Church & State Files for Chapter 11 Bankruptcy Amidst Ongoing Labor Lawsuit”, Farley Elliott, July 24, 2017
