Tag Archives: BusinessBankruptcy

What Happens If a Business Partner Declares Bankruptcy?

Running a business is full of challenges. If you run a business – which is probably the case since you’re reading this – it’s very likely that you’re familiar with just how challenging it can be. Things can be going great – operations are running smoothly, you’re reaching all of your financial goals – and you can still run into problems outside the realm of your control. For example, you could be going through your business’ mail one day and come across a bankruptcy notice from one of your main suppliers. What does this mean for your business? Will you still be able to do business with this supplier? Are there steps you need to take to avoid financial loss? When dealing with a business partner’s bankruptcy, several factors determine your available options. If they are filing for Chapter 11 bankruptcy, then their business remains in control of its possessions…
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Why Gibson’s Bankruptcy Will Save the Gibson Brand

Gibson guitars are associated with some of the most famous musicians in history. Eric Clapton, Elvis Presley, David Bowie, Slash, Pete Townshend, Jimmy Page and Bob Marley all used Gibson guitars at some point during their careers. The famous Gibson Les Paul can sell for prices in the thousands of dollars. Despite decades of success, Gibson Brands Inc. recently filed for Chapter 11 bankruptcy. The bankruptcy provides a lifeline for Gibson Brands, Inc by keeping the company in business and by allowing it to restructure its consumer electronics department, Gibson Innovations. The department is taking blame for Gibson’s financial problems. Gibson Innovations sold products such as headphones, turntables and speakers. Under the Chapter 11 plan, Gibson will wind down Gibson Innovations. Chapter 11 Bankruptcy Does Not Mean a Company Is Going out of Business There are common misconceptions about bankruptcy. For example, some people assume that filing for bankruptcy means…
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How Can Chapter 11 Bankruptcy Save My Business?

Difficult financial times and other unforeseen circumstances can sometimes exhaust the resources of businesses. For business owners who are looking to maintain control of their companies, protect the jobs or workers and stop collection activities, Chapter 11 bankruptcy is the best way to move forward. Many major corporations and small businesses have filed for Chapter 11 bankruptcy and survived to start anew. Here are four ways Chapter 11 bankruptcy can protect businesses in financial trouble. One of the most important mechanisms of Chapter 11 bankruptcy is that business owners can retain control of their companies. By maintaining control, businesses can reorganize and find new ways to become profitable again. However, in Chapter 11, the bankruptcy court maintains supervision and has control over some decisions, such as sales of assets or expanding operations. By filing for Chapter 11 bankruptcy, collection actions and lawsuits come to a halt. This can buy businesses…
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