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Bankruptcy May Be Your Option

Toy company seeks Chapter 11 bankruptcy protection

Many businesses in Oklahoma are started by people who have a product or line of products that they think would be popular. While these businesses often see success, some face financial difficulties. One company, overwhelmed with debt, has recently made the decision to file for Chapter 11 bankruptcy.

The company, Marbles: The Brain Store, began as a kiosk in a mall in 2008. Although that venture was short lived, the owners of the business were soon able to open a retail store that same year. The creators of the store debuted a line of toys that they claimed were not just fun to use but also required consumers to use their brains.

The store saw a great deal of success initially. While revenue increased significantly each year, one of the creators claimed that the company was not profitable as revenue was focused on growth. In 2016, the company set a goal of increasing the number of stores by 20 percent; they hoped to meet this goal with a $10 million credit facility. Unfortunately, the 2016 holiday season was not as profitable as originally hoped, causing the company to fall behind in rent. As a result, the company made the decision to close its stores and seek bankruptcy protection.

Many companies are created with the best of intentions. Owners and employees in Oklahoma work hard to ensure the success of the company. However, some companies are unable to weather some of the hardships, including a season of lower sales, forcing owners to make difficult decisions. In some cases, they best option may be to seek Chapter 11 bankruptcy protection. For those considering such an action, there are experienced professionals who can help decision makers come to an agreement on the best possible course of action.

Source: Chicago Tribune, "Marbles: The Brain Store files for bankruptcy, seeks to close all its stores", Lauren Zumbach, Feb. 6, 2017

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