While many might see bankruptcy as a bad word, it can actually be a wonderful thing for those who really need it. For example, Chapter 11 bankruptcy doesn’t mean the company is nearing its demise. It’s actually a great way to protect a company from creditors and give that company a chance to reorganize so it can pay those debtors off and come out stronger in the end.
That’s exactly what one New York City-based company is hoping to do as they navigate through the bankruptcy process. Tamara Mellon LLC, a women’s clothing and accessories label, hopes to emerge from Chapter 11 bankruptcy in 60 days or less as a new company.
The company apparently owes somewhere between $1 million and $10 million to 100 to 199 creditors. It has about the same amount in assets currently, according to the bankruptcy court paperwork.
Of the many creditors, one company is owed almost $200,000 while another one is owed a bit over $100,000. The goal of the bankruptcy filing is for the company to be able to restructure and be able to take advantage of a new strategy that will hopefully keep them in the business for years to come.
The company currently sells their products at retail stores such as Neiman Marcus and Saks, but it hopes to one day sell products through its own website and its own stores.
While many people may see bankruptcy as a negative business decision, it’s actually a process that can help a business owner save his or her business and come out even stronger.