New York businesses in financial trouble need to address bankruptcy options, and whether staying open or shutting down is a better option.
The start of the New Year usually brings with it a rise in bankruptcies filed by businesses that were too weak to be boosted by the holiday sales period. A recent Forbes Business article about retail bankruptcy shows how businesses try to use holiday sales as a last ditch recovery, but are unable to make enough profits. It says, “Every year there are retailers, struggling with inadequate cash flow and strained liquidity due to poor sales, and poorer profits, hope that by some stroke of luck they will pull themselves out of their financial morass as a result of strong Christmas sales.”
2015 is a time to make changes and keep resolutions, and some businesses need to decide whether to close their doors or continuing operating. So we kicked off this year by working with New York small businesses to find out which type of bankruptcy is the best choice for them, and whether staying open or shutting down is a better option. Let’s review the factors to consider when weighing the fate of a business, and the unique advantages to Chapter 7, Chapter 11, and Chapter 13 bankruptcy.