Many companies in Maryland and elsewhere may attempt to provide consumers access to a variety of product brands, some of which could prove less profitable than others. When a business begins to experience significant financial issues, it may seek to regain financial stability by selling the rights to certain brands, but this might not always solve the issues. After reportedly experiencing similar hardships, the apparel company Nine West has filed a petition to pursue reorganization through bankruptcy.
According to reports, Nine West provides clients with access to a variety of brands of clothing and accessories. However, the company asserts that certain products have proved less profitable than others, and that substantial amounts of debt have left it in search of financial relief. By filing for Chapter 11 bankruptcy, the company is reportedly seeking to sell the rights to certain products and work back toward financial stability by focusing on its more successful products.
Along with seeking to sell certain product brands, the company also asserts that it is in the process of restructuring agreements with certain debtors. By filing for Chapter 11 bankruptcy, a company could seek to reorganize its finances and repay certain amounts of debt over a given period while remaining open for business. However, the company must first set forth its plan for reorganization for approval by the bankruptcy court before it can begin the process.
While financial reorganization could provide a company with the relief it needs to remain operational, it can also be a complex process. Business owners who wish to safeguard the future of their companies could consult with a bankruptcy attorney for guidance on the best course of action to take. An attorney in Maryland can provide a client with advice in making informed decisions and subsequently assist in pursuing relief from financial hardships through reorganization.
Source: daytondailynews.com, “Nine West files for bankruptcy”, Thomas Gnau, April 9, 2018
