Since the recession, a number of businesses have ended up struggling under mounting debts. In fact, we're even posted on a number of different businesses -- both large and small -- that have filed for Chapter 11 bankruptcy in the hopes of reorganizing debts and staying in business.
A Comfort Inn in Tampa, Florida, was recently added to a growing list of Chapter 11 bankruptcy filings by a family-owned business. In this most recent filing, the hotel lists assets between $1 million and $10 million and liabilities between $10 million and $50 million.
In some business situations, financially it makes the most sense to file for Chapter 11 bankruptcy in order to reorganize.
While the current economic client has been tough on many Florida residents and businesses, it turns out that there are some industries that are seeing huge decreases in revenue due to importing and technological changes. For some, this may end up leading to eventual bankruptcy.
Reddy Ice Holdings Inc., the largest packaged ice producer in the U.S., has revealed that it is considering filing for bankruptcy protection and is reviewing its options as it looks to the future. According to a recent article in The Wall Street Journal, the news follows a bankruptcy filing in February by Arctic Glacier Inc., which is the second-largest ice maker and Reddy Ice's main competition.
It appears that public outcry over "pink slime," or the use of boneless lean beef trimmings in ground beef products, has led to national ground beef producer AFA Foods Inc. filing for bankruptcy. With these recent financial struggles, it's anticipated that lay-offs will also end up affecting hundreds of employees across the country who work for the company.
While filing for bankruptcy is certainly a difficult decision for many business owners, partnerships and corporations, the truth is that a bankruptcy can actually be a very positive move that can greatly benefit a business in the long run.
The recession has led to many once thriving businesses to seek out bankruptcy protection in order to either reorganize or discharge debts that have accumulated over the years.
Some bright financial news has come out of the U.S. Bankruptcy Court for the Middle District of Florida recently: bankruptcy filings in that area fell nearly 20 percent in 2011 compared to 2010. The middle district encompasses the large metropolitan areas of Fort Myers, Orlando, Tampa and Jacksonville.
In these current trying times, some businesses that once thrived are now in tough financial situations. Often, the only way to remedy this is by filing for a business bankruptcy.