These days, retail companies are struggling to make ends meet, not only in Massachusetts but also in other states across the country. Thus, it may not come as a surprise that, as 2017 drew to a close, yet another retailer — Charming Charlie — decided to file for bankruptcy. Part of the reason for so many retailers’ Chapter 11 bankruptcy filings last year is the fact that many consumers are relying on the internet for buying goods.
In Charming Charlie’s case, the company said its goal as part of its bankruptcy filing was to trim the number of stores it has in operation. The company secured loans totaling millions of dollars. Approval from the bankruptcy court was needed for the company to keep its website functioning and most of its shops open during the holidays.
In 2017 alone, a whopping 20-plus retailers started bankruptcy filings. It appears that the same trend may occur in 2018 given today’s struggling retail environment. This is particularly true for the beginning of this year.
Sometimes, retailers and other types of companies in Massachusetts simply cannot make their assets outweigh their liabilities. In these situations, they may benefit from filing for Chapter 11 bankruptcy, which will enable them to restructure their debt and make it more manageable. Unfortunately, the filing process can understandably seem overwhelming, with a single mistake having the potential to derail a business owner‘s bankruptcy-related goals. An attorney can offer guidance with the bankruptcy filing process to ensure that it is done correctly and in a manner that protects one’s best interests long term.
Source: kaplanherald.com, “Bankruptcies will proceed to rock retail in 2018. Right here’s what that you must watch”, Jan. 2, 2018