The recent advent of online shopping has forced a multitude of businesses to experience a significant drop in consumer traffic in brick and mortar stores. This has left many businesses in Maryland struggling to keep up with the competition, and the financial challenges involved in a reduction in sales can leave a company in need of monetary relief. After experiencing similar concerns, a popular cosmetic jewelry chain is reportedly forming a plan to pursue financial reorganization through Chapter 11 bankruptcy.
Much like many other mall-based stores, Claire’s Stores Inc. has reportedly begun to experience the financial challenges that come with the recent decline of consumer traffic. In addition to a decrease in revenue, the company is also struggling to deal with the nearly $2 billion of debt it obtained when it was taken over by another entity. Although the company says it initially sought to overcome these issues by forming business arrangements to sell its products at other retailers, it is reportedly preparing to seek relief through Chapter 11 bankruptcy.
It might not be all that uncommon for a business to experience monetary troubles from time to time, but in many cases, these struggles may only be temporary. However, if adjustments to business strategies fail to help a company through these difficult times, further assistance may be necessary. By filing for Chapter 11 bankruptcy, a company may be able to continue daily operations while repaying certain amounts of debt over time.
When a business struggles through extended periods of monetary problems, owners may find it beneficial to seek guidance on the potential advantages of financial reorganization. For advice on the available options, a business owner in Maryland could consult with an experienced bankruptcy attorney. An attorney can examine the situation and assist a client in pursuing the most favorable outcome possible concerning the future of his or her business.
Source: therealdeal.com, “Claire’s Stores plans Chapter 11 bankruptcy”, March 10, 2018