Seder & Chandler, LLP
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Westborough 508-709-0024

Linen services company seeks Chapter 11 bankruptcy protection

A linen services company in another state recently determined that its financial challenges required action. It filed for Chapter 11 bankruptcy protection. Companies in Massachusetts that are having similar problems with staying afloat financially can also seek bankruptcy protection with the goal of coming back stronger than ever.

The Atlas company provides uniforms and linens for hospitals, medical offices and nursing home patients and staff. It also offers a laundry service. Filing for bankruptcy will allow the linen services company to reorganize its debt while enjoying protection from creditors.

According to company officials, the company plans to close one of its three locations, which employs 10 individuals, since it lost a key customer recently. A second location, which employs more than 160 people, is not scheduled to close. Likewise, a third location, which employs more than 140 people, is expected to stay open since it is doing well financially. The main problem leading to the company's bankruptcy filing is its parent company's poor performance. However, the bankruptcy process will help to drive the sale of the parent company's poorly performing operations to a competing company.

Sometimes businesses both large and small in Massachusetts cannot bounce back from financial challenges on their own. Fortunately, they have the option of filing for Chapter 11 bankruptcy, which can help them to finally recover from their financial difficulties. In this type of proceeding, a reorganization plan is submitted to the court for approval with the stated goal of emerging from bankruptcy protection in a financially stable position. An attorney can help with the filing process, ensuring that the client's best interests and rights are protected each step of the way.

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