When businesses declare bankruptcy, sometimes they come back better than ever.
That’s what executives at retail giant Sports Authority are hoping they can achieve. Like many businesses focused on brick-and-mortar stores, the chain has struggled in recent years as consumers have shifted toward online shopping. The company has filed for Chapter 11 bankruptcy protection, giving it a period of time to reorganize, during which it will be protected from creditors.
Some people mistakenly think that when a business declares bankruptcy, that means it goes out of business forever. And indeed, about 140 of the chain’s 463 stores will close, including at least two in the greater Tampa Bay area. However, CEO Michael Foss said the move will allow much-needed investments including upgrades to stores and website enhancements, resulting in an improved experience for customers.
In January, Sports Authority missed a $20 million interest payment to creditors.
Many companies have filed bankruptcy and later achieved stability, or even impressive growth. Examples include General Motors, Marvel Entertainment, Six Flags, American Airlines and Kodak.
O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Office If you need a Commercial Bankruptcy attorney in Brandon, Tampa business bankruptcy lawyer, call 813.654.5777 or visit http://www.brandonlawoffice.com.