Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

Chapter 11 bankruptcy keeps laundry doors open

In a recent blog post, we discussed how Chapter 11 bankruptcy can help businesses or individuals restructure debts to create a more viable future. For businesses, Chapter 11 bankruptcy is often a beginning instead of an ending, and restructuring can mean the business stays open, shareholders have future earnings to look forward to and many employees keep their jobs.

A company providing commercial laundry services in Tennessee and several other states is seeing the benefits of Chapter 11 bankruptcy first hand. The company, Coyne Textile Services, filed Chapter 11 during the summer. The organization will be selling assets in October, but several of the company's facilities will remain in operation under the Coyne name.

The business is selling three locations to two buyers. All of the locations being sold are outside of Tennessee. They are being sold to two competing laundry companies.

While restructuring debt, Coyne Textile Services is working with the bankruptcy court to create a viable plan and to avoid service termination. As of late September, the company had not reported any service terminations -- always a good position for an organization that is in the middle of debt restructuring. Continuing to provide services means a continuation of cash flow, all of which makes it more possible to pay down restructured debt.

The company has nine locations, including the three that are being sold. There are 620 employees at those locations. With various locations being kept in operation by Coyne, at least some of those employees should remain on the job.

Business bankruptcy proceedings are complex. From workers to vendor contracts, many considerations go into planning a restructuring. Working with professionals that understand those intricacies helps business owners and operators seek a better future through legal bankruptcy.

Source: WCYB, "Coyne's Bristol location has buyer, no plan to shut down," Lenny Cohen, Sep. 28, 2015

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top