Chapter 11 bankruptcy is often thought of as a filing that is meant only for corporations and big companies. However, Chapter 11 is also a possibility for smaller businesses, and indeed Chapter 11 filings are largely made up of smaller businesses. In this context, a small business is defined as having 500 employees or fewer.
The clothing industry is steady in some ways and very unsteady in others. On one hand, everyone needs clothes, which would suggest that demand is steady. But the specific kinds of clothes that consumers want to wear are dictated by fashion, which is capricious and ever-changing.
This week we continue our discussion on struggling businesses in the energy business. The mining business seems to be having a dark moment of its own. Recently, U.S. coal producer Peabody Energy Corp failed to meet an interest payment deadline. The payment was supposed to be in the amount of $71.1 million.
Throughout the years we have seen certain industries being hit hard at one time or another. It seems that quite a few companies in the energy industry are feeling the heat currently, as quite a few have announced efforts to restructure their debt.
Financial troubles can pop up in just about any industry. It may seem like some industries, such as the entertainment business, would be permanently protected from financial woes, but that is simply not the case. No matter how well a business is doing or how well the industry is doing, there are many unique factors that may force a business to file for Chapter 11 bankruptcy protection.
A fluctuating market and strong competitors can really take a toll on a company, no matter its size. Hancock Fabrics Inc., one of the biggest fabric sellers in the country knows a thing or two about that. It recently filed for Chapter 11 bankruptcy for the second time in under a decade. Although the company came out stronger the first time around, competition and higher costs related to pensions and retirement plans have led to declining numbers.
An insider claims the company recently skipped an interest payment and is discussing possible other options with bondholders. This step puts Sports Authority into a 30-day grace period. If the payment is not made within that period, a default will be triggered.
Most companies in New York and throughout the Unites States go through fluctuations. Some years are positive and bring a lot of growth, while others may be a bit stagnant financially or even see some decrease in profits. The main hope is that over time the company sees growth and progresses in its core mission to satisfy customers and to keep employees happy.
When we hear about a company being bought by another entity, we often see it as a negative step. But while change can be difficult for any business, this type of change may be a wonderful opportunity for a New York company to grow and improve.
As a business owner goes through the steps of establishing his or her business and growing it, the individual often turns to an attorney in order to make sure he or she is following all the laws related to that business. While one hopes to have their business operating smoothly from that point on, many businesses reach bumps in the road for a wide variety of reasons.