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Bankruptcy May Be Your Option

Tulsa Bankruptcy Law Blog

Another retailer seeks Chapter 11 bankruptcy protection

While the Internet has revolutionized how many companies in Oklahoma and other areas of the country conduct their business, it has also created complications for retailers that are primarily brick-and-mortar based. Recently, several retailers have struggled financially, many opting to file for Chapter 11 bankruptcy protection. Another store has recently taken such action.

The store, Papaya, opened in 1999. It focuses on teen apparel. As with many niche retailers, it achieved a great deal of success relatively quickly, prompting it to expand rapidly. In fact, the company opened over half of its 80 stores in the last six years. However, these new stores also came with new debt.

Residential solar company seeks Chapter 7 bankruptcy

Many companies in Oklahoma experience a long period of financial success and growth. However, changes in market trends and demand can quickly turn a successful company into one that is experiencing financial difficulty. Such appears to be the case for an out-of-state company, American Solar Direct, that focuses on residential solar power after it filed for Chapter 7 bankruptcy.

For several years, companies installing residential solar systems saw growth. In fact, ASD was named as the "residential PV installer to watch" by GTM Research in 2013. When named, the company had experienced positive growth since it began installing such systems in 2010.

Passing the means test when facing financial challenges

There is a misconception that people in Oklahoma who are struggling with overwhelming debt are doing so because of poor decisions. However, the loss of a job or a serious illness or injury can create unmanageable expenses that are difficult for many people to plan for or overcome. Those in such a situation may feel that they will never be able to manage their debt. Fortunately, people facing financial challenges have several options, including filing for Chapter 7 bankruptcy.

Part of filing for Chapter 7 bankruptcy involves passing what is known as a means test. As part of this test, the average of a filer's household income for the last six months is taken. From that amount, allowable living expenses based on household size and payments for secured debt, among other types of debt, are subtracted in order to determine a monthly disposable income.

21st Century Oncology seeks reorganization through Chapter 11

There are many factors that can influence the overall success of a company in Oklahoma. For a company that involves health care, proposed changes in health insurance can have a tremendous impact, among other factors. A company that claims it is the largest provider of cancer treatment centers has recently experienced the uncertainty that many such companies feel in the current political climate, resulting in its decision to seek reorganization through Chapter 11 bankruptcy.

The company currently operates 179 centers; however, the interim chief executive officer says that the filing will not affect any of them. According to court papers, the filing was prompted by several factors. In addition to the uncertain political climate, the company cited a reduced amount of revenue per cancer treatment and the cost of complying with requirements regarding electronic record keeping. The company has also recently settled a lawsuit that claimed it billed the government for services that were not medically necessary. It will pay $55 million as a result of that lawsuit while admitting no wrongdoing.

Reports indicate rise in credit card debt

Credit cards can be incredibly useful. They can help a person establish a healthy credit rating and provide funds in the event of an emergency. For people in Oklahoma who are struggling to pay their bills or feed their family, a credit card can serve as a temporary means to fill a gap. However, someone who has lost their job or experienced a significant injury or illness may rely heavily on them. Because of interest rates, credit card debt can quickly become unmanageable.

 According to a reports released by the National Foundation for Credit Counseling, more families are now carrying over debt from the previous month. The report indicates that 39 percent of families are doing so in 2017 in comparison to 35 percent in 2016. The amount of debt being carried over has also increased; in 2017, 16 percent of families are carrying over $2,500 or more each month while only 14 percent did so in 2016.

Gander Mountain to close following Chapter 11 bankruptcy

As more and more consumers in Oklahoma and across the country become internet and computer savvy, they are seeking alternative ways to make purchases -- ways that often allow them to shop from the comfort of their own home. While this trend has helped internet-based companies, many brick and mortar retailers find themselves struggling as a result. Often, they are left wondering how to manage their struggling business with some turning to Chapter 11 bankruptcy for help.

One company, Gander Mountain, recently sought such protection as have several other retailers in recent history. In March 2017, Gander Mountain filed papers with the court and closed over 30 of its stores deemed as underperforming. Now, after 57 years of business, all of the company's locations are closing.

Gymboree reportedly set to seek Chapter 11 bankruptcy

Many retailers in Oklahoma and other areas of the country have recently faced financial struggles. For a lot of these companies, the only option to adequately manage their debt may be to seek to reorganize it through Chapter 11 bankruptcy. Some reports indicate that another retailer is set to seek such protection following losses.

The company, Gymboree, stocks clothing for children. It is said to have over 1,200 locations, including Crazy 8 stores, Gymboree and outlets and Janie and Jack shops. Reports indicate that second quarter earnings in 2017 decreased 5 percent when compared to earnings in 2015. Losses for the former are reported to be just under $325 million.

Brewery cites location as Chapter 7 bankruptcy factor

There are many factors that go into the overall success of a company. Even those with good ideas, quality products and creative minds intent on success struggle due to factors that are sometimes beyond their control. For example, some businesses in Oklahoma may struggle as a result of increased competition. A brewery in another state cites competition as one of the reasons behind its recent Chapter 7 bankruptcy filing.

The Dutch Girl Brewery opened in July 2015. A representative for the company claims that it created a quality product, even winning a bronze medal for its craft beer. Unfortunately, despite its quality product, the company began to struggle. It abruptly announced on a social media posting that it would be closing in March.

The many different factors that lead to personal bankruptcy

Many Americans are hard workers, dedicated to meeting their financial obligations. Unfortunately, certain unanticipated financial hardships can often become insurmountable for many in Oklahoma and other areas of the company. Because a large number of people live paycheck-to-paycheck, they may have little left over at the end of the month to help them manage unexpected expenses, prompting them to seek personal bankruptcy protection.

While some people many assume that people who file for such protection are victims of their own financial mismanagement, professionals with experience with such filings claim that is typically not the case. Often, a person struggles due to circumstances beyond their control. For example, many areas see an uptick in filings following the closure of a major employer. Some laid-off employees struggle to find employment at the same pay and may already be significantly behind on mortgage or car payments if they are able to find another job.

Medical device manufacturer seeks bankruptcy protection

Most companies in Oklahoma sets goals for the future. Regardless of the exact wording of their plan for the future and how they measure whether they have accomplished their goals, they all want to be successful. Unfortunately, there are often many factors that can influence a company's overall success that are often beyond the control of those who lead the company. One out-of-state company is now attempting to help secure its future success by filing for bankruptcy protection.

The company, Unilife Corporation, manufactures medical devices, including wearable devices that inject medications. Unfortunately, the company showed signs that it was struggling in 2016. At that time, it laid off approximately 40 percent of its workforce. It recently laid off over 30 percent of its remaining 140 employees.

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