With the current economy we tend to focus on the companies that have had to file for bankruptcy due to financial struggles. Of course this is hard for the owners, many times having to shut down a business they had run for years and years. But, along those same lines it’s also important to keep in mind that there are the people who have worked at these businesses. Often, after the business bankruptcy they find themselves trying to find a new job, which — again due to the economy — isn’t always easy.
Back in August, most of the employees who worked for Linwood Furniture LLC were put on furlough as the business had filed for Chapter 11 bankruptcy several months prior. At the time there were 79 listed employees, down from the 103 that were listed at the time of the bankruptcy filing.
However, now with the Chapter 11 bankruptcy being converted to a Chapter 7 bankruptcy, it seems everyone is going to be losing their job.
“Is is extremely sad to watch almost 100 people lose their jobs,” the president and chief executive officer of Linwood Furniture said about the liquidation news.
Originally, the hope was that a Chapter 11 bankruptcy could help the furniture manufacturer stay afloat through some reorganization. But months later, the CEO said it just made more sense for the estate and creditors for the company to convert to a Chapter 7 liquidation bankruptcy.
Later this month, the top secured creditor for Linwood Furniture is expected to ask for a sale of the company’s assets and a foreclosure. The money that is recouped can then go toward paying back liabilities.
Source: Winston-Salem Journal, “Linwood Furniture put in Chapter 7 bankruptcy,” Richard Carver, Sept. 5, 2012