A footwear chain for women, Aerosoles, which has a presence in Massachusetts, recently decided to file for bankruptcy. As part of the Chapter 11 bankruptcy filing, the store is planning to close many of its stores. This is just one of the many companies that have experienced tough financial times in the area of retail.
The company said the bankruptcy will help the company with trimming its debts and reorganizing its operations. It remains unclear exactly how many employees or store locations will have to be cut as part of the company’s bankruptcy filing. However, the business said it had already started liquidation sales.
The company currently has over 88 stores. In addition, it sells its merchandise at thousands of specialty locations and department stores. Several retail stores so far this year have filed for Chapter 11 bankruptcy, including True Religion, Gymboree, Rue21 and Payless ShoeSource. The company’s restricting process is expected to be completed in four months, and at that point, it should be able to emerge from its bankruptcy.
Sometimes retail stores and other types of businesses in Massachusetts and elsewhere struggle to make ends meet due to economic problems or other issues, and their liabilities end up outweighing their assets. However, Chapter 11 bankruptcy exists to help struggling companies to restructure their debts and operations so that they can finally get back onto healthy financial paths and stay there for the long term. An attorney can help business owners to navigate the complex bankruptcy filing process to make sure that their desired outcomes are attained.
Source: usatoday.com, “Aerosoles bankruptcy: Footwear chain plans store closures“, Nathan Bomey, Sept. 15, 2017