On Nov. 4, Florida-based Sun Capital Partners filed in the U.S. Bankruptcy court for Chapter 11 bankruptcy protection. Sun Capital Partners is a private equity firm based in Fort Walton that purchased Edwin Watts Golf Shops in 2007. It is hoped that the shops will continue to operate until the Chapter 11 proceeding is concluded. To that end, the company secured a loan from PNC Bank in the amount of $38 million.
A restaurant in Dolphin Mall filed for bankruptcy, although the restaurant continues to operate. Taverna Opa sought the debt relief protections of the Chapter 11 bankruptcy option. The restaurant is owned by Opa Restaurant Group, which has several restaurants throughout Florida.
Apparently in hopes of continuing operations, East Coast Brokers & Packers have filed for Chapter 11 bankruptcy protection in the Florida courts. Besides being in the tomato shipping business, the owners of the packing company also own a hotel that has been closed for the last ten months.
It was reported earlier this week that Rhythm & Hues Studios, the visual effects company nominated for two Oscars for "Life of Pi" and "Snow White & The Huntsman," plans to file for Chapter 11 bankruptcy.
With the recession and cuts in public spending, many schools around the country ended up being impacted. For many districts the state budget cuts led to school boards having to delay adopting new curriculum guidelines and put off spending money on any instructional materials that would have met those new guidelines. This in turn ended up affecting School Specialty Inc., the company that supplies about 70 percent of the schools in the U.S. with school supplies.
It does not matter how long a company has been in business: No business is immune to financial difficulties. For the owners, this of course can become quite stressful, especially in situations where the business has been in the family's name for quite some time.
Understanding the benefits and risks of owning a business is something Florida residents who do so likely are all too familiar with. As good as the intentions may be, there are some times when the need for bankruptcy protection comes up for business owners, however. One company that Florida residents have likely heard of is the gaming company Atari Inc. What they may not have gotten wind of, though, is that even this company is affected by the strains and whims of the economy.
In many cases businesses have to rely on credit to survive. This is why when credit is denied -- or suddenly taken away -- a business can end up in a tough financial situation unable to continue to operate the same way.
When talking about filing for bankruptcy, many incorrectly assume that the filing must come while the company is still in business. And while it is true that filing for bankruptcy while still in business can do a lot in terms of possibly saving the business, there are cases where a business files after it has already shut down.
Back in January we posted about Hostess Brands Inc. filing for Chapter 11 bankruptcy. The hope was this restructuring would allow the company to figure out a way to pay off its creditors and once again be a profitable business.