Moody, AL–Both the COVID-19 pandemic and the shift in consumer behavior are to blame for the financial distress many businesses are facing today. Although the Administrative Office of the U.S. Courts reported that both business and non-business bankruptcy filings fell by 27.9% in the year ended September 30, 2021, there were still plenty of businesses that had to rely on bankruptcy to help them gain a handle on their debt.
Some of the businesses that filed for bankruptcy in 2021 include:
- Belk– Belk filed for Chapter 11 bankruptcy and within just a few days, had its reorganization plan approved. The store was able to emerge from bankruptcy with its approximate 290 stores intact, reports Forbes, and $450 million less in debt.
- Alex and Ani LLC– Alex and Ani was another business entity to utilize Chapter 11 bankruptcy as a way to reorganize and put itself up for sale, according to Bloomberg.
- Solstice Marketing Concepts– Solstice Marketing Concepts, which owns roughly 66 retail stores that go by the name of Solstice Sunglasses, filed for Chapter 11 bankruptcy at the beginning of 2021. The company had plans of using the bankruptcy filing to restructure itself and emerge in a better financial state. Yahoo reported that after only a few short months of filing, the retailer emerged from the bankruptcy process with a “$6.5 million exit facility.”
- Christopher & Banks– Unlike the other businesses mentioned above, Christopher & Banks entered the bankruptcy process to settle its outstanding debt and shut down its approximate 450 stores. The company reportedly was struggling with “debt issues and pandemic disruptions,” and was unable to continue with operations.
Are you considering filing for bankruptcy in Alabama?
There are many benefits to filing for bankruptcy as are there some disadvantages. However, if your business is struggling and you aren’t looking to shutter, Chapter 11 bankruptcy could potentially help you get your finances in order and keep your business up and running.
If you’d like to learn more about filing for bankruptcy in Moody, AL and whether it is a suitable option for your business, contact Hill, Gossett, Kemp & Hufford, P.C. The Alabama bankruptcy lawyers at Hill, Gossett, Kemp & Hufford, P.C. would be happy to take the time to help you understand what the bankruptcy process entails and how it might be able to help you.
Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.
Hill, Gossett, Kemp & Hufford, P.C. can be reached at:
2603 Moody Parkway, Suite 200
Moody, Alabama 35004
Phone: (205) 640-2000
7900 Parkway Drive
Leeds, AL 35094
Phone: (205) 699-5500
6441 U.S. Highway 11
Springville, Alabama 35146
Phone: (205) 467-2225
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