A long time Omaha-based Jewelry chain filed for bankruptcy and plans to close all of its nine stores, including a store in Des Moines, Iowa.
Brodkey’s Jewelers, which has been around since 1880, filed Chapter 11 recently, claiming its stores are under-performing, and in order to pay creditors, they need to liquidate and sell their assets. Brodkey’s assets are between $500,000 and $1 million while its debts are figured to be between $1 million and $10 million. According to court filings, Brodkey’s already had pending court approval to hold sales with a liquidation firm. Brodkey has eight stores in Nebraska and one in Iowa.
Brodkey’s was once cited as Retailer of the Year in 2006 by the Nebraska Retail Federation.
As a business, sometimes filing for Chapter 11 bankruptcy is the best way to reduce your financial obligations. Contact our bankruptcy lawyers at Hong Law, PLC, at (319) 294-5853 to discuss how Chapter 11 bankruptcy can benefit you.
A123 Systems Inc, a developer of lithium ion batteries used in electric cars, filed for Chapter 11 bankruptcy protection in October, after receiving more than $245 million in grant money from the U.S. Department of Energy.
As is common in large business bankruptcies, the company will be auctioned off to the highest bidder to raise money to repay its debts to its creditors. A123 will be auctioned next month, and one of the most interested buyers is Chinese automotive parts supplier Wanxiang.
Many are greatly opposed to the foreign company’s potential purchase of taxpayer-funded A123. Opponents of foreign participation in this auction are concerned with the prospect of technology developed using taxpayer money being acquired by a foreign nation. Other companies interested in possibly placing a bid on A123 are Japan’s NEC Corp and Germany’s Siemens AG.
Some are fearful of the potential sale to a foreign agent as a matter of national security, since A123 had various military contracts and develops technologies that are important to the nation’s infrastructure. Still others are concerned with the economic impact of domestic jobs being moving overseas.
A123’s initial Chapter 11 filing included a plan for it to be purchased by Wisconsin’s Johnson Controls for $125 million, which would keep all of the company’s assets under U.S. control. That plan will continue unless another entity makes a higher bid at next month’s auction.
The U.S. government stated that any sale of A123 Systems will be subject to its approval. The government also reserves the right to demand compensation for any company assets that were funded by the clean energy grant.
While your business’ financial difficulties may not be a matter of national security, they are still important to us. If you feel like your business is drowning in unmanageable debt, a bankruptcy attorney from Hong Law, PLC, can show you the potential benefits of filing for Chapter 11 bankruptcy. Contact us at 319-632-1400 to learn more about how we can help.
On Friday, Hostess Brands sought the approval of a bankruptcy court to shut down its operations entirely. The company’s decision to close its bakeries and distribution centers came after a national strike of Hostess bakers. The company announced that if the bakers did not return to work on Friday, that it would have no other choice but to close down the company for good.
As a result of the closing, approximately 18,500 Hostess employees will lose their jobs. The company will close 33 bakeries across the country, and an additional 565 distribution centers. Hostess outlet stores are also affected by the closing, and 570 of these stores will shut their doors. Hostess has plans to sell all of its assets to the company that places the highest bid.
Hostess believes that several companies will be interested in some of their iconic brands, including Twinkies, Wonder Bread, and Drake’s Devil Dogs. These brands have the potential to be produced at a new company with a different product line. The bankruptcy filing was made in January, and that was the second time that Hostess filed for bankruptcy protection since 2004.
If your company is facing financial hardships, and you are considering bankruptcy, you need an experienced bankruptcy attorney on your side to help you through this complex process. Please contact the bankruptcy lawyers of Hong Law, PLC by calling 319-623-1400 today.
AMF Bowling Worldwide Inc. has sought Chapter 11 bankruptcy protection for the second time since 2001. AMF owns and operates 262 bowling centers in the United States, and employs approximately 7,000 people. With a large amount of debt, the operator of bowling alleys has filed for Chapter 11 bankruptcy protection.
In 2001, AMF filed for bankruptcy after declining revenue led to growing debt. One year after filing, the bowling alley company was restructured, and a different owner was appointed. The company claims that between 2005 and 2008, there was improvement in the financial areas of the business. Due to the large amount of debt that has been acquired in recent years, and the decline in interest in the sport of bowling, AMF decided to file for bankruptcy for a second time on Tuesday with the U.S. Bankruptcy Court in Richmond, Virginia.
According to the paperwork that was filed, the assets and liabilities for the company fell in the range of $100 million and $500 million. The company will continue with normal operations while undergoing the restructuring process of Chapter 11 bankruptcy. The lenders attached to the bowling company are owed approximately $216 million.
If your company is facing large debt, Chapter 11 bankruptcy may be the right decision for your company. Please contact the Chapter 11 bankruptcy lawyers of Hong Law, PLC by calling 319-632-1400 to discuss your specific case today.
Last month, St.Louis-based Bakers Footwear Group filed for Chapter 11 bankruptcy after defaulting on a loan. Back in 1999, Bakers downsized from approximately 600 stores across the nation to roughly 200 stores. Now the company is downsizing even further, and has started the liquidation process of 150 stores nationwide.
The liquidation process began on November 9, and involves 150 stores which represent 70 percent of all Bakers stores currently in the United States. These selected stores will discount their current merchandise, and offer more than 50 percent savings on clearance merchandise as well. Equipment and furniture from these stores will also be liquidated. The stores will continue to liquidate assets through the end of the 2012 fiscal year.
Before the liquidation started, Bakers had 213 stores in 34 different states. The company has hopes of maintaining operations in 63 stores after the liquidation process is complete. Bakers has plans to refinance the company, and use the money from the liquidation sales to pay off current creditors.
The CEO of Bakers claims that the 63 stores that will remain in normal operations are in the company’s best regions. These stores will slowly begin to tailor their products to the specific target markets of the region when moving forward with the future of the company. The CEO also stated that online sales will become more integral to the company’s future, with sales expected to reach 25 percent of the company’s total profits.
The Japanese automobile company, Suzuki, has just announced that it will be shutting down its U.S. division, and filing for Chapter 11 bankruptcy in America. The U.S. division of the company is headquartered in California, and that is where the bankruptcy papers were filed.
Suzuki motor vehicles will still be sold in other parts of the world, but will no longer be available in American markets. The company will instead focus its efforts on marketing all-terrain vehicles, motorcycles, and boats in the United States. According to the paperwork that was filed, Suzuki listed $346 million in liabilities, and $233 million in assets.
The company failed to appeal to the target market in the United States, and as of October 31 had only sold 21,188 vehicles in America. Suzuki has mentioned that warranties on current American models will be upheld during the bankruptcy proceedings. The company has revealed that it has between 1,000 and 5,000 creditors.
The automobile company revealed that it will continue operations during the restructuring process of Chapter 11 bankruptcy. Certain dealerships in the United States will turn into parts-and-services operations, and some will shut down altogether as a result of this filing.
If you have questions or concerns regarding the Chapter 11 bankruptcy process. Please contact the Chapter 11 bankruptcy lawyers of Hong Law, PLC by calling 319-632-1400 today.
Iowa cleaning supply manufacturer Harper Brush Works Inc. has had a proposal to auction off its assets approved by a U.S. Bankruptcy Court for the Southern District of Iowa judge amid accusations that an auction will not raise more funds than an asset liquidation.
The family-owned maker of brooms, floor brushes, and other cleaning tools filed for Chapter 11 bankruptcy in May, listing its assets at $10.4 million with $10 million in liabilities.
The auction is set to open with a bid of $2.2 million for all of the Harper’s current assets. Opposing bids will be due on November 14, with the auction set to take place on the 19th.
Making the decision to auction off your business’ assets in bankruptcy is not easy. If you’re facing overwhelming business debts and are looking for relief, consulting with a business bankruptcy attorney can help you make the right decision for your circumstances.
The Baltimore Sun reports that former Baltimore Raven Jamal Lewis is entangled in federal bankruptcy court in Georgia today, after filing for bankruptcy in April.
Today’s hearing will determine if his case will go on as a Chapter 11 case, which would be controlled by him and his attorney, or a Chapter 7 case, in which a trustee would sell his assets to his creditors.
Lewis’ filing claims $10.6 million in debts while showing $14.5 million in assets. He is facing trouble after a string of failed investments.
Jamal Lewis was trying to do good with his money, but unfortunately ran into some bad luck, as many people do. If you’re struggling under a great financial burden and can’t seem to make any headway, you may want to begin considering bankruptcy. Contact the bankruptcy lawyers of Hong Law, PLC, at 319-623-1400.
The Senate Judiciary Committee recently approved a bill that is set to make the Chapter 11 bankruptcy process less stressful for small businesses.
The current Chapter 11 regulations are allegedly geared more towards large, publicly-traded corporations. The Small Business Reorganization Efficiency and Clarity Act will double the amount of time (from 45 days to 90 days) small businesses have to confirm their plans for bankruptcy.
The bill also aims to eliminate certain requirements that end up wasting attorney time, resulting in unnecessary fees. It also has a provision that allows firms who are bankrupt to continue being represented by familiar attorneys who have small claims against them.
This new bill will add to the advantages of Chapter 11 bankruptcies. If your small business is running too deep in the red, consider contacting a Chapter 11 bankruptcy lawyer from Hong Law, PLC, to help you begin restructuring and clear your overwhelming debts.
Boston-based book publishing giant Houghton Mifflin Harcourt filed for Chapter 11 bankruptcy on Monday.
The company claims to be $3.53 billion in debt in the filings it made, while listing $2.68 billion in assets. It cites decreases in sales of physical books (due to the rise of e-books) and reduced government funding for its increasing financial strife.
The publisher has a long history, releasing the works of authors such as J.R.R. Tolkien, Ralph Waldo Emerson, and Mark Twain. The Chapter 11 bankruptcy filing will help restructure the company’s finances while allowing it to remain in business.
If your business is deeply in the red, you may consider filing for bankruptcy to help protect against certain debts. Contact the Chapter 11 bankruptcy lawyers at Hong Law, PLC, at 319-623-1400.
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