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When Bad Things Happen to Good People ...

Bankruptcy May Be Your Option

Wholesale nursery seeks Chapter 11 bankruptcy

Each business industry in Oklahoma is unique, with individual factors that impact each company's success or struggles regardless of the amount of effort employees put into making it financially successful. For example, bad or unexpected weather may have little impact on an electronics company, while it could be devastating for a nursery. One out-of-state nursery has recently filed for bankruptcy, citing the weather as one of the reasons for its financial struggles.

The company is Zelenka Farms. Currently, it either leases or own lands in a variety of states, including Oklahoma. The company distributes shrubs and trees grown in containers to retailers like Lowe's and Home Depot.

Last year, the company reported $130 million in sales; however, court papers indicate that the company owes just under $190 million to creditors. Zelenka Farms claims that it was unable to pay down a loan to PNC Bank earlier this year because a rainy spring drove down the costs of its products. The company listed its assets as valued between $100 and $500 million and is looking for a company to purchase it. One of its facilities in Michigan is set to close in September. As part of the closure, 300 employees will be laid off.

Unfortunately, there are companies in Oklahoma that are also struggling as a result of elements, such as weather, beyond their control. Because debt can quickly become insurmountable, companies begin to research their options in regard to how to best handle such debt. Often the best course of action is to seek bankruptcy protection. An experienced attorney can help companies understand these options and choose the most appropriate one for each individual situation.

Source: mibiz.com, "Zelenka Farms files for bankruptcy, closes Grand Haven operations", John Wiegand, July 13, 2016

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