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.
Nearly six years after attorneys for the Davenport Diocese filed for bankruptcy, the Chapter 11 case has come to a conclusion.
The diocese had to file for bankruptcy after settling cases of alleged child molestation at the hands of its priests. The $37 million settlement has been distributed among over 165 individuals. The church had to sell some of its land in its restructuring, but has since bought it back.
The judge who presided over the decision said the diocese has followed its bankruptcy plan faithfully, but must continue being complicit with the non-monetary conditions outlined in the plan, including posting information about the accused abusers on its website.
If your business is facing crushing financial difficulty, you may find relief in Chapter 11 bankruptcy. Contact the bankruptcy attorneys of Hong Law, PLC, at 319-623-1400 to learn more.
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.
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