A new restaurant in another state recently decided to take action to address its undesirable financial situation. The bar and American fusion café, called Mortar & Pestle, determined that filing for Chapter 11 bankruptcy protection would be in its best interest, so it proceeded with this process in mid-June. Companies in Massachusetts that are having a hard time staying afloat financially can certainly follow in this café’s footsteps to experience much-needed financial relief.
In the out-of-state case, the two owners of the restaurant — who are cousins — opened it in Aug. 2017. At the time, their goal was to also open an indie pharmacy adjacent to the café. However, the restaurant received mixed reviews on its dishes, so it ended up changing its menu’s direction to introduce items at lower price points.
Still, Hurricane Irma came along in the fall. In addition, following the storm, a serial killer plagued the neighborhood, and according to the restaurant, this did not help its business, either. However, the restaurant owners said they plan to keep the eatery’s doors open — something that is possible with a Chapter 11 bankruptcy filing.
Chapter 11 bankruptcy filings offer the benefit of allowing struggling businesses to reorganize their debt so that they are no longer under water. Through this process, they can continue to operate and pursue their financial goal of being profitable long term. An attorney in Massachusetts can help business owners through the process of filing for bankruptcy so that their best interests are upheld from start to finish.