As businesses in Maryland and elsewhere reach a certain level of success, some may choose to branch out and take on new endeavors. While these exciting new prospects could lead to a substantial increase in profits, there may also be a certain level of risk involved. After experiencing hardships under similar circumstances, a business in another state was recently able to overcome financial challenges and regain success through financial reorganization.
After reaching a certain level of growth, the organic produce company decided to expand operations to include a transportation service to aid in distribution. Unfortunately, this service experienced challenges that would ultimately force it to shut down three years later. Following the closure, the produce company began to struggle financially, eventually leading it to file for Chapter 11 bankruptcy.
In Chapter 11 bankruptcy, a business can obtain protection from creditors while restructuring finances and forming a plan to repay debts over time. After filing for bankruptcy, the produce company was able to focus on profitable areas and cut costs, which has reportedly led to a substantial increase in monthly revenue. It has recently completed the bankruptcy process, and its renewed level of success also caught the eye of numerous investors.
When experiencing prolonged periods of financial difficulty, many businesses may find it helpful to explore the benefits of financial reorganization through Chapter 11 bankruptcy. Since this can be complex, business owners could choose to speak with an experienced attorney for assistance in navigating the process. An attorney in Maryland can address a client’s financial concerns and provide advise on how to pursue a healthier financial future through the necessary outlets.
Source: thepacker.com, “Denver distributor emerges from Chapter 11”, Daniel Vanderhorst, Aug. 29, 2017