Each week day there are dozens, if not hundreds, of bankruptcies filed in the continental United States by those who seek relief from overwhelming debt. Many, if not most, of these cases involve just an individual or a couple who want to find relief from their financial problems in a bankruptcy court. But there are many thousands of bankruptcy business cases filed each year by corporations. Most companies are barred by law from filing a case of Chapter 13 bankruptcy, but that does not preclude them filing for a Chapter 7 or a Chapter 11 with the help of a legitimate and competent bankruptcy lawyer.
All sorts of companies and retailers have financial problems large and serious enough that they will consider filing for bankruptcy. Even very large corporations have been known to seek relief under either Chapter 7 bankruptcy or Chapter 11 bankruptcy codes. According to bankruptcy firm Scura, “Such organizations include, but are not limited to, manufactures, clothiers, real estate development partnerships, restaurants, airlines, and even utility companies.”
Here’s a cursory look at a few of the outstanding corporate bankruptcies from the past twelve months.
A huge news story and state scandal for California, PG&E went for a Chapter 11 bankruptcy in the courts of Northern California back in January of 2019. Their assets could not cover all the probable liability and certain debt they would have to face after a disastrous wildfire season that eventually was blamed on their equipment in heavily forested and wildlife areas.
The children’s clothier closed over eight hundred stores at the beginning of January this year and then proceeded to file for Chapter 11 bankruptcy. Unexpectedly low sales and an overambitious customer rewards program were blamed by corporate officers for the sudden descent into bankruptcy. The company will continue to offer its Jackie and Janie brands of kids clothing for the immediate future, but all other labels are now defunct.
Charlotte Russe Women’s Clothing
Once a huge trend setter in women’s wear, Charlotte Russe took a header last February when their inability to set up an online shopping system that met customers needs and expectations led to Chapter 11.
The importance to both attorneys and the general public of this type of information is that it gives an indication of the real financial state of the country. It also is important to the many people who depend directly or indirectly on a company’s financial status to know whether or not it will be able to restructure its debt through the bankruptcy process. When the courts allow a company to restructure debt creatively, it often means people keep their jobs and vendors get their money for a much longer period of time.