Toys 'R' Us stores in Tennessee and across the country will remain open even though the company is filing for bankruptcy. The struggling company has filed under Chapter 11, a type of bankruptcy designed to help a business handle and improve its financial situation without liquidating assets or shutting down.
Some Tennessee businesses that are failing may benefit from filing for bankruptcy. It is possible that Chapter 11 bankruptcy offers an orderly method for restructuring debt and repaying creditors without having to shutter the company. There are many signs that a company may be headed to bankruptcy such as surviving on a line of credit, an inability to pay bills and a negative net worth.
Tennessee companies considering undergoing a Chapter 11 bankruptcy may be interested to learn about a March 2017 U.S. Supreme Court decision. The court ruled 6-2 that bankruptcy courts do not have the authority to allow select creditors to bypass others in the order of repayment.
Countless celebrities have filed for bankruptcy over the years. According to Time, this long list includes talk show titan Larry King, former heavyweight champ Mike Tyson, rappers 50 Cent and MC Hammer, actors Gary Busey and Burt Reynolds, and rock stars Tom Petty and Mick Fleetwood. Abraham Lincoln, Henry Ford and Donald Trump are often cited as other examples.
In a previous blog, we glanced at the reported six Chapter 11 bankruptcies filed by President Trump's businesses in the past. According to the Washington Post, these bankruptcies date back to Trump's Atlantic City Taj Mahal in 1991 and end with the 2009 filing by Trump Entertainment Resorts, which sought protection from creditors.
Tennessee residents may be interested to learn that Caesars Entertainment Corporation and Caesars Entertainment Operating Company, Inc. are filing for Chapter 11 bankruptcy. The U.S. Bankruptcy Court for the Northern District of Illinois confirmed the bankruptcy reorganization plan, and CEOC is now ready to begin a restructuring process that will be overseen by the bankruptcy court.
According to numbers recently reported by the American Bankruptcy Institute (ABI), there were 38 percent more commercial bankruptcy filings in September when compared to the same month just one year ago.
For many business owners struggling with debt, bankruptcy provides the best - and often only - solution for keeping their businesses afloat.
According to data recently provided by Epiq Systems Inc., and distributed by the American Bankruptcy Institute (ABI), commercial bankruptcies in the U.S. increased 10 percent in July 2016 when compared to the same month just one year earlier. This marks the ninth straight month in which commercial bankruptcy filings have experienced year-over-year increases.
With Donald Trump under public scrutiny for filing Chapter 11 bankruptcy protection multiple times in the past few decades, many businesses wonder how a bankruptcy will reflect on their own reputation and future business deals. Is there a way to shield your business bankruptcy from public view? What steps can you take to minimize any negative impact to your business?