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When Bad Things Happen to Good People ...

Bankruptcy May Be Your Option

Several retailers consider Chapter 11 bankruptcy

Many retailers in Oklahoma and across the country are struggling to stay afloat financially. Changes in the way customers do business in addition to other factors have had a major impact on many different stores. Unfortunately, several stores must soon make difficult decisions regarding whether to file for Chapter 11 bankruptcy.

One of the companies, Gander Mountain, has recently hired a financial adviser following reports that some of its vendors stopped accepting orders. Another company, Wet Seal, specializes in teen clothing. Reports indicate that the company is planning on closing its headquarters as well as its 171 store. According to regulatory filings, a poor performance this holiday season left the retailer unable to secure additional financing.

Versa Capital, which owns Wet Seal, owns two other businesses that are also struggling. Sources claim that bankruptcy filings are imminent. One of the companies, EMS, has already closed several of its stores in the last year. Versa attempted to sell both companies unsuccessfully over the course of the last few weeks, but a representative claims the company is still considering its options.

Often, even the people with the best minds for business are unable to save a company due to market forces beyond their control. As companies in Oklahoma examine their options regarding coping with their overwhelming debt or inability to secure additional financing, many seek the advice of an attorney with experience handling bankruptcies, especially those with knowledge about Chapter 11 bankruptcy. Often, these struggling companies find that seeking bankruptcy protection is the best option for their circumstances.

Source: New York Post, "Several retail chains on verge of bankruptcy after poor holiday sales", Lisa Fickenscher and Josh Kosman, Jan. 26, 2017

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