Another retailer seeks Chapter 11 bankruptcy | The Colpitts Law Firm
Call Us: 918-236-8385 or Toll Free: 866-647-1770
Local 918-236-8385
Toll Free: 866-647-1770
When Bad Things Happen to Good People ...

Bankruptcy May Be Your Option

Another retailer seeks Chapter 11 bankruptcy

In recent years, a number of retailers in Oklahoma and across the country have struggled with debt. Many of these struggles are caused by forces that are beyond the control of decision-makers, including weather conditions. In fact, another company, A'Gaci, has recently sought Chapter 11 bankruptcy protection due to overwhelming debt.

The woman's retailer was founded in 1971 and has 78 stores. According to recent filings, the company has $62 million in debt and $82 million in total assets. While the company experienced $4.7 million in earnings in 2016, it ended the year with negative $2.5 million.

Representatives for the company claim that several factors played into their debt. The company rapidly expanded over the course of the last two years, including opening 21 stores; this expansion made it too difficult for the company to focus on a changing market. Also, representatives say that attempts to create a new inventory management system was delayed, ultimately resulting in arbitration with a third party. In addition to these two issues, 22 stores were closed due to hurricanes; two of the stores remain closed.

By filing for Chapter 11 bankruptcy, A'Gaci wants to close 49 stores in the hope that it will then be able to focus on its best performing locations. Its filing follows other retailers, including The Limited, Toys R Us, Wet Seal and Radio Shack. While taking such action may be a difficult decision to make, an attorney with experience with bankruptcy law can help struggling companies in Oklahoma examine their options and the potential outcomes of each, helping them make decisions that could ultimately aid in their future success.

Source: Houston Chronicle, "Retailer A'Gaci files for bankruptcy protection", Patrick Danner, Jan. 11, 2018

No Comments

Leave a comment
Comment Information

Initial Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy