Sears was recently granted a $5.2 billion reorganization plan. Under the plan, Sears can continue operating 425 department stores. The plan also allows 45,000 workers to keep their jobs.
Chairman Eddie Lampert entered Sears into Chapter 11 bankruptcy in October. Lampert’s bid fought opposition from several unsecured creditors, including mall suppliers and owners. These creditors tried to stop the sale and requested for liquidation of the company. U.S. Bankruptcy Judge Robert Drain for the Southern District of New York rejected the creditors’ claims. He disagreed that the sale would shut out other parties who wanted to purchase the company, and he rejected the idea that Sears has more value to creditors if it failed. Sears argued that the sale was the best solution, and they explained the need to save thousands of jobs.
Although Sears’ long-term fate is murky, Chapter 11 bankruptcy will help provide the retailer a lifeline while it searches for new ways to increase profits.
How Do I Know If Bankruptcy Is the Right Option for My Business?
A common misconception is that Chapter 11 bankruptcy means a business is permanently closing. However, Chapter 11 allows small and large businesses to reorganize while eliminating debts and continuing operations. Multiple other well-known companies filed for Chapter 11 and survived, including American Airlines and Six Flags. You can learn more about those bankruptcies on our blog. Whether you are a large corporation or a small business, Chapter 11 bankruptcy is an option you should consider if you are experiencing major financial problems.
Call a Kansas City Business Bankruptcy Attorney for Business Debt Solutions
If your business is drowning in debt and you are unsure how to seek relief, contact a Kansas City bankruptcy attorney who can give you several options. Call The Sader Law Firm today for a phone consultation. Reach us by dialing (816)281-6349 or by using our online case review form.