Despite stimulus payments to cover the costs of payroll for small businesses across the country, many business owners have struggled to pay rent on commercial property leading tens of thousands of small businesses into bankruptcy. Although landlords have shown some flexibility during the pandemic, it has not been enough for many businesses owners who fallen helplessly behind on rent forcing many to consider bankruptcy protection in the aftermath of Covid-19 closures. Of course, this also … [Read more...]
Small Business Reorganization Act of 2019
There is no doubt about it, Covid-19 has wreaked havoc on small businesses across the country. Sole proprietors, main street businesses, suppliers, and other small businesses have had to get creative to stay open with many exploring Chapter 11 bankruptcy to reorganize as they weather the storm. With a Chapter 11 an individual or business can propose a reorganization plan, which may include downsizing to cut costs and renegotiating debts so they can remain open. As long as the plan is … [Read more...]
Retailers Flock to Chapter 11 Bankruptcy Protection in the Wake of Covid-19
In the latest round of retailer bankruptcies in the wake of Covid-19, the operator of Ann Taylor and Lane Bryant stores filed for chapter 11 bankruptcy. With thousands of stores in malls across the country, Mahwah, New Jersey-based Ascend Retail Group Inc., plans to close several Catherine’s and Justice Stores and a number of Ann Taylor, Loft, Lane Bryant and Low & Grey stores due to weak sales made worse by the pandemic. The company joins a growing list of retailers filing chapter 11 … [Read more...]
Creditors Balk at Suspension of Debt Collection During Pandemic
Early demands to freeze the collection of past due debt during the Covid 19 shutdown had debt collectors across the nation scrambling their lobbyists to push back, expressing concerns that the suspension of debt collection activities would "pose an undue burden to the industry's ethnically diverse workforce" and leave debtors "in the dark on how to handle their debt obligations". Many find the industry’s overt cries to protect their diverse workforce ironic considering many minorities suffer … [Read more...]
Print Directories Struggle in Digital World – Chapter 11 Bankruptcy
Chapter 11 usually comes to mind when large corporations fall into financial distress and need bankruptcy relief. Typically the debtor files for protection and proposes a reorganization plan, which the creditors will then vote on before final approval is given by the bankruptcy court. It may not come as a surprise to many that one of the country's largest phone book publishers, Dex, is planning to file for Chapter 11 business bankruptcy protection next month for the third time in seven years. … [Read more...]