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Bankruptcy doesn’t have to be a defeat, but can be a new beginning
Last week, electronics chain Radio Shack filed for bankruptcy following decline in its wireless offerings and struggles to keep up with online shopping. The company reportedly plans to close at least 1,784 locations across the country by the end of March. In Lexington, several Radio Shack stores will be closing, two by the end of February and one in late March.
Sources didn’t provide details of the company’s financials or creditors as listed in its bankruptcy filing, except to say that Radio Shack’s creditor Standard General announced that it may attempt to reuse some storefronts for cell phone sales centers. As far as what Radio Shack has planned after the bankruptcy, no details were provided.
Bankruptcy, of course, is never a decision businesses take lightly, because of its potentially disruptive effects. Most businesses don’t take the decision lightly, either. Bankruptcy isn’t usually viewed by debtors as an easy way out, but as a something that, upon consideration of all alternatives, is the most sensible way forward. Bankruptcy can, however, be an opportunity for a business to regroup and rework itself to be more effective in the future. Often this involves coming up with a new direction for the business, new ways of investing money, new leadership, and so on.
Whatever the needs of a business surrounding the bankruptcy process, our firm is there to help. We offer businesses comprehensive guidance on all aspects of the bankruptcy process so that it isn’t an occasion for failure, but an opportunity for a new beginning.