We feel empowered to speak about Chapter 11 bankruptcy at the Manhattan law firm of Rich Michaelson Magaliff Moser, LLP, for many reasons. As we duly note on our website, "we have represented clients in the New York City area, Delaware and nationally in some of the most challenging and visible corporate bankruptcies in recent years."
From that vantage point, we note that the expectations and outcomes linked with a Chapter 11 commercial bankruptcy filing can vary materially from case to case. As we stress on our site, some clients invoke the process in hopes that it is the optimal strategy enabling them to efficiently cease business operations. Other enterprises want to work with proven Chapter 11 attorneys to eliminate debt and "lay the groundwork for a long-running and successful business."
There is no question regarding what top executives at Toys R Us -- the huge and iconic toy retailer -- are thinking as they contemplate current challenges that are unprecedented in the company's history. They want to use Chapter 11's protections to materially eliminate billions in long-term debt and to help the so-called "big-box" toy pioneer refocus on forward-looking strategies to ensure long-term success in an ultra-competitive market.
In public comments made last week, Toys R Us CEO Dave Brandon stated that a recent Chapter 11 filing marked "the dawn of a new era" for the mass retailer.
Proven commercial bankruptcy attorneys routinely advise their valued clients that Chapter 11 is not an optimal response to every stark business challenge. Indeed, other alternatives exist that can make more sense in given instances.
In select cases, though, a Chapter 11 filing can be the ideal vehicle for slashing debt and helping a business restructure in a manner that can powerfully position it for enhanced success in the future.
That is obviously what Toys R Us is hoping for.
Business principals with questions regarding Chapter 11 or any other debt-relief matter can obtain prompt, candid and knowledgeable guidance from an experienced corporate bankruptcy law firm.