It is no secret that 2020 has been a difficult year for businesses across our economy. Seemingly overnight, a steady economy was turned upside down by the fallout from the ongoing COVID-19 pandemic, leaving businesses struggling to make ends meet.
In a previous post, we pointed out some of the options available to distressed businesses. These options include pursuing bankruptcy under Chapter 11, maybe even under the new Subchapter V, a workout with your creditors, or consenting to a Chapter 128 receivership.
Making the Right Choice for Your Business
The right choice will depend on a variety of factors including how viable your business is in the long-term, and whether you wish to remain at the helm on the other side of the legal process.
A sale of your business as an operating entity, or just as your brand, is an option whether as a way of negotiating with your creditors, or as the basis of a bankruptcy or receivership. In a bankruptcy, you would remain in control and would run the process. In a Chapter 128 receivership, a receiver would be appointed to oversee the management of your business while a new buyer is found. A recent example of a business going through Chapter 128 is Quality Assembly & Logistics, LLC in Marinette. Our very own Rebecca DeMarb was appointed receiver over the business, working with existing management to maintain operations while the business’s assets were sold early in COVID-19 and to two different buyers.
Different situations call for different courses of action. A workout with your creditors or a bankruptcy can restructure your obligations and make your business more viable in the long run
These are very general examples of how a business owner may choose to proceed in the face of a challenging financial situation and do not necessarily apply to your unique situation. The only way to be sure what the right choice is for you is to seek the advice of an attorney who is knowledgeable about business debt relief and can apply that knowledge to your case.
No matter what the future holds for your business, you can rely on the experienced attorneys at DeMarb Brophy to provide sound guidance on your debt relief options. We know how much time and care you have put into your business. We bring the same level of dedication and sense of urgency to helping you through your tough times.