When a business goes under, it can be difficult for consumers. This is especially true in the case of brides, who may have dream dresses in mind.
Alfred Angelo, a popular bridal company, had around $78 million in debts with very few assets to its name. After selling off 6,000 wedding gowns and property on Deerfield Beach, the company had raised only $245,000, failing to come anywhere near what it would have needed to dig itself out of debt.
Now, a Chinese company has taken over the company name and website. Dresses aren't yet for sale, but the entire situation points out something important: If you liquidate your assets and close your doors, others can take your place. The e-commerce buyer Gangnam Inc. purchased the domain name and trademark for the business for $50,000 in May 2019. Now, this could be the company fulfilling bridal accounts should it choose to open sales again. In the past, many of the gowns received from Alfred Angelo were made in China.
This is an interesting story to talk about because liquidation is not the only option for businesses who are struggling with debts. Most businesses also have the option of Chapter 11 bankruptcy, which allows you the time to work through your finances and find ways to make your business profitable. Once a plan is in place and creditors are satisfied, a business can emerge from a Chapter 11 bankruptcy and continue opening its doors to consumers.
If your business is struggling, don't wait until liquidation is your only option. Your attorney can help you understand your bankruptcy options.