Even when a business is successful in terms of customers or members, the business may still be facing serious financial struggles. Many times, this can lead to a seemingly booming business closing its doors and filing for bankruptcy.
Take for example the recent closing and Chapter 7 bankruptcy filing of the Grant Family Farms. For the past 61 years the farm had been operational. The Community Supported Agriculture farm, commonly referred to as a CSA, has more than 4,500 members. This makes it the largest CSA in the country.
However, just like businesses here in Florida, the farm was having its fair share of struggles. Between drought and hail damage, and a spinach recall, the farm came to the point where filing for bankruptcy just made the most financial sense.
According to the filing, the farm has between $501,000 and $1 million in assets, but between $1 million and $10 million in liabilities.
There seems to also be other reasons outside of crop damage and the spinach recall that led to the bankruptcy, but the owner avoided talking about specifics, just saying “there will be interesting parts to this story.”
For business owners in Florida, what this recent filing goes to show is that regardless of how long a business has been around, or even if the business is still very popular, there can still be financial hurdles that can get in the way.
In those cases where liabilities are outweighing assets, it is a good idea to talk with a bankruptcy attorney in order to learn about what options are available. In some cases, it may even be possible to save the business.
Source: Fort Collins Coloradoan, “Grant Family Farms closes, files for bankruptcy,” Jan. 7, 2013
- Our firm handles business bankruptcy. And while Chapter 7, like the Grant Family Farms filed for, is one option, there are a number of different types of business bankruptcy. To learn more, visit our Orlando business bankruptcy page.