A footwear company in another state recently decided to take drastic measures to address its debt situation. It filed for Chapter 11 bankruptcy. Companies in Massachusetts that are having a hard time staying on top of their debt may benefit from doing the same.
In the out-of-state case, the footwear company known as The Walking Co. Holdings Inc. said it expected to complete its Chapter 11 reorganization process before the start of July. The bankruptcy court approved the company’s reorganization plan following months of extensive negotiations between the company and its various stakeholders. This is the company’s second bankruptcy filing during the past decade.
However, company officials said they were confident that they would emerge from the bankruptcy process positioned for success and financially stronger than ever. Some shareholders decided to commit to investing more than $10 million into the business. In addition, Wells Fargo Bank said it would give the company exit financing. All of this will enable the firm to keeping going.
Sometimes, market conditions or changing consumer demand makes it difficult for a company to stay on top of its financial situation, thus leading to enormous debt. In this situation, filing for Chapter 11 bankruptcy protection may be a smart move. Of course, the bankruptcy filing process can seem intimidating and confusing, especially for those who have never been through it before. An attorney can help struggling business owners in Massachusetts to complete each step of the process correctly so that they can receive the financial fresh starts they so desperately need.