Some people who are new to the concept of bankruptcy as it relates to businesses may feel that the process is usually used by companies that pop up fast and quickly burn up. If a business has been around for a long time, some may think that it is somehow immune to financial woes. But it’s important to remember that a business, just like a person, can go through many transformations throughout its lifetime. The company may grow or get smaller, the owners may change and it may even change in terms of the type of services or products it provides. All of these changes could make it susceptible to financial instability.
Recently, a funeral home in another state filed for Chapter 11 bankruptcy protection. This isn’t just any funeral home – it’s been around for more than 140 years. The company has an interesting history. It was started by a grocer named J.C. Hargett. Several years later, the man formed a partnership with another man to create what was known as Scarborough and Hargett Undertakers. Four generations have passed and now John Clarence Scarborough III owns the company.
The company owners are working with an attorney as they navigate the bankruptcy process. The company has more than $1 million in debts and its assets are listed as being between $50,000 and $100,000. It currently owes a casket company more than $14,000 and also owes $1.3 million in taxes. With such a long history behind it, the company likely hopes this bankruptcy filing will help them restructure so they can continue to be in business for many more years.