Retailers Neiman Marcus, the Guitar Center, and JCPenney filed for Chapter 11 bankruptcy in 2020. So did J.Crew, GNC, and Tailored Brands. Each of these business interests suffered financial losses that require more intervention than a management shake-up to regain their commercial footing.
As 2021 kicks off, reports suggest Chapter 11 is in the offing for many more businesses as the pandemic continues to impact the economy. AMC, Bed Bath & Beyond, Office Depot, Barnes & Noble, and others are weighing Chapter 11 as a strategy to stem bottom lines awash in red ink.
The pandemic has pushed businesses to the brink and beyond. Companies that were struggling prior to the arrival of COVID-19, as well as those turning a profit, saw doors closed during lockdown and in some cases, complete drop-off of customer traffic. As the drumbeat of business closures continues into 2021, considering Chapter 11 could be a smart strategic move to save your business and increase profitability in a market that will never quite be the same.
Our tax lawyers help business owners and operators optimize business choices to suit long-term goals. If your company is struggling, Chapter 11 may be a strong option for you. Consider these points:
If considering bankruptcy, work with a reputable law firm to assess your situation and options. An experienced tax and bankruptcy attorney can help you avoid pitfalls and make choices to use the Bankruptcy Code to grow your company back into profitable business.
For business owners challenged by the pandemic, bankruptcy could be an option. The legal team at Robert J. Fedor, Esq, LLC, provides strong representation on matters of business bankruptcy, IRS audits, and tax controversy. From offices in Chicago and Cleveland, our tax lawyers serve clients domestically and abroad. Call us at 800-579-0997.