Tag Archives: BusinessBankruptcy

Chapter 11 Bankruptcy Could Help You Save Your Business

The changing economy can take its toll on businesses of all sizes. Unfortunately, weathering a changing economy can be difficult, especially for small businesses that have little room for error. Some businesses become stuck in debt and the financial stress can seem overwhelming for business owners. Struggling business owners should consider all available legal options for resolving their situation. With the right solution, you can save your business. Chapter 11 bankruptcy is an option to consider. Is Your Business in Trouble? While businesses can correct some difficult financial issues, other types of problems may be more difficult to solve without assistance. If you notice these warning signs, call an experienced Kansas City business bankruptcy attorney.  Cash flow crisis  Personal assets at risk  Large amounts of debt  Sales in decline  Employee layoffs Can Chapter 11 Bankruptcy Save Your Business? Through Chapter 11 bankruptcy, you can protect your business from creditors. Consider…
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When Management is the Reason Your Company is Struggling Financially

Eddie Lampert’s 4.8-billion-dollar Sears buyout announcement earlier this month comes amid the once-iconic corporation’s Chapter 11 bankruptcy filing. The bankruptcy, filed in October, allows for financial restructuring. Lampert personally stands to lose 2.4 billion if it fails. While the buzz around this latest headline is focused on Lampert’s intentions to possibly bleed the company of more money through the deal’s fine print, the fact remains: even in bankruptcy, Lampert is still in charge of a business he is widely accused of running into the ground. A Business Insider article reveals the intimate details of a small, private meeting between Lampert and a few mid-level employees, providing insight into a deeper level of dysfunction within the once-iconic company. The article describes employees’ fearful preparations moments before Lampert appeared on a screen at Sears Illinois headquarters. He joined the meeting from his Florida mansion. The employees were concerned about the words the…
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Bankruptcy Success Stories: American Airlines

We have written extensively about how struggling businesses can benefit by filing for Chapter 11 bankruptcy. Over the years, numerous companies survived financial disasters by seeking Chapter 11 protections. Some of these companies are household names, such as American Airlines. American Airlines is the largest commercial airliner in the United States. Despite its history of success, the company experienced severe financial problems less than a decade ago. American Airlines was beset by numerous financial setbacks before its parent company, the AMR Corporation, filed for Chapter 11 bankruptcy in 2011. For instance, the company reported steep losses and major problems negotiating labor contracts with pilot unions. The company was also facing excessive debts and rising fuel prices. Many of these problems had persisted for years before the AMR Corporation sought protections under Chapter 11. In fact, the company narrowly avoided filing for bankruptcy in 2003. In 2011, facing a serious crisis,…
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