Tag Archives: BusinessBankruptcy

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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These Three Financial Mistakes Could Ruin Your Business

Being an entrepreneur is more difficult than many people realize. It involves hard work, an innovative streak, and many sleepless nights. Simple mistakes can overtake your best efforts and put your business in financial jeopardy. Here are a few of those mistakes and some solutions an experienced bankruptcy attorney may provide: Mismanaging Start-up Loans/ Financing Securing capital is the first step in creating a startup. Whether that capital comes from family members, friends or strangers, producing a return is expected. Not delivering on those returns could land your business in trouble with its investors and securities laws. A business workout could help avoid this conflict. This out-of-court solution may allow businesses to negotiate new terms for an investment.   Failing to Make Equity Arrangements and Vesting Schedules Vesting schedules guide how business founders earn shares over time, and equity arrangements formalize the stakes each founder has in a business. Without…
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