Bankruptcy does not have to be the end of the road for your business. In fact, your company may benefit from filing for Chapter 11 bankruptcy.
If your company is facing financial challenges and is in danger of going out of business, filing Chapter 11 bankruptcy may be right for you. Here are some companies that have filed for bankruptcy and came out ahead.
- American Apparel. The Canadian brand filed for Chapter 11 bankruptcy in 2015. After rebranding and reforming the company into an LLC, the company relaunched online and has been turning a profit since.
- American Airlines. American Airlines filed for bankruptcy in 2011. By 2014, it was up and running again—it was even profitable. American Airlines is now a Fortune 100 company.
- Gander Mountain. In 2017, Gander Mountain, the nation’s largest outdoor specialty chain, filed for Chapter 11 bankruptcy. Recently, 69 Gander Outdoors locations have opened across the U.S. generating a gross profit of $1.4 billion.
In addition to these success stories, Toys “R” Us may be making a comeback. After closing all stores and filing for bankruptcy one year ago, the retail chain may be making a comeback. The CEO says that they plan to slowly reintroduce a rebranded and smaller version of Toys “R” Us, starting with two U.S. stores before the holiday season in 2019.
Although bankruptcy may be scary, you may want to consider filing for Chapter 11. It may benefit your company. Reassessing your company and starting fresh may be enough to put it back on the path for success. After all, Chapter 11 was designed to help companies pay off their debt and reevaluate their business in hopes of turning over a new leaf.
