New Mexico business owners may relate to a high-end furniture company’s current financial situation, especially those who have known their shares of ups and downs where costs and profits are concerned. It’s the mother company for several well-known furniture brands. Due to circumstances the company believes are likely to get worse instead of better, owners have decided to work through a Chapter 11 bankruptcy to obtain debt relief while, at the same time, keeping its doors open for business.
It is not the first time this particular company has navigated the Chapter 11 process. Being able to file more than once, if needed, is an attribute of Chapter 11 that attracts many business owners, whether their companies are sole proprietorships, partnerships or corporations. Since the system includes reorganization of payment plans to pay back creditors, it can be customized to fit a particular business owner’s needs and ultimate financial goals.
Other forms of bankruptcy, such as Chapter 7, generally require business owners to cease operation. However, most business owners can retain control of their companies when filing for Chapter 11. The furniture company that recently filed is trying to pay down more than $280 million in debt.
Owners of the company say that increased competition, changing consumer patterns and other issues led to its current financial crisis. The company last filed for Chapter 11 bankruptcy in 2013. Any New Mexico business owner facing similar financial problems may want to explore available debt relief options by requesting a meeting with an experienced bankruptcy law attorney. With proper planning and effort, financial stability can be achieved once again.
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