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Helping good people through bad times

Know your options for a pending business bankruptcy

Recently a major American retailer shut its doors and ceased operations at its stores throughout the nation. Toys "R" Us had been in business for decades before attempting to use bankruptcy to revitalize its sagging bottom line and save itself from extinction. However, any Tennessee resident who has tried to visit one of the company's stores in the last week would have found that all retail centers for the former megastore are now closed.

Toys "R" Us elected to file for Chapter 11 bankruptcy, the path many businesses use to reorganize their debts and to restructure the means through which they will pay those debts off. It failed, however, and ultimately the company had to resort to Chapter 7 bankruptcy. Chapter 7 bankruptcy operates for businesses the way it operates for private consumers; the debtor's assets are sold off and creditors are repaid with the proceeds of the liquidation.

How does a situation like this happen and how does a once thriving business end up shutting down completely after dominating a market for so many years? If it can happen to a business like Toys "R" Us, readers of this bankruptcy and debt relief blog should not be shocked to learn that it happens to many smaller businesses every single year.

Many of the posts on this blog focus on individual bankruptcy, but attorney Kenneth C. Rannick supports and advocates for business bankruptcy clients as well. Businesses can seek the protections of the bankruptcy courts and may choose to pursue paths that allow them to restructure their debts and assets. Business owners who want more information on their entity's options for seeking bankruptcy may consider visiting our law firm's website.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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