Retailer Claire’s is Thriving After Exiting Bankruptcy

Leeds, AL–Despite the negative connotation bankruptcy carries, there are many benefits it can provide to a struggling business. Take Chapter 11 bankruptcy for instance. With this type of bankruptcy, a business is not only given the option to reorganize its debt, allowing for some of it to potentially get wiped away, but it also allows it to continue with operations.

Retailer Claire’s was able to use bankruptcy to restructure, start fresh, and regain its value. If your business is on the cusp of closure due to a buildup of debt but you aren’t ready to walk away, a Leeds, Alabama bankruptcy attorney can help you decide if filing for bankruptcy is the right solution for you.

Why did Claire’s file for bankruptcy in 2018?

It was in March 2018 when Claire’s, primarily known for providing ear piercings and the latest fashion jewelry, filed for Chapter 11 bankruptcy. By the end of 2017, Claire’s had accrued $2.1 billion in debt, CNN reported (1), and was in dire need of restructuring. 

Although the jewelry retailer would be required to shut down some of its stores, CNN says the bankruptcy filing would ultimately allow it to reduce its debt by $1.9 billion.

Now, four years later, Claire’s has shifted its business model and is considering going public. 

Has your business fallen deep into debt?

If you own a business in Alabama and believe it would benefit from a reorganization, Chapter 11 bankruptcy might be an option to consider. 

Under Chapter 11 bankruptcy, you would be permitted to keep your business open and could potentially borrow new money (2). This would not only stop your creditors from taking legal action against you while you work to get your business back on track, but it could be the perfect solution to making your business profitable once again.

To find out if your business qualifies for Chapter 11 bankruptcy or if it’s even a suitable option you should be considering, contact Hill, Gossett, Kemp & Hufford, P.C. 

The Leeds, Alabama bankruptcy attorneys at this firm can answer any questions you might have, and explain the bankruptcy process in-depth. To schedule a time to speak with a skilled bankruptcy lawyer in Leeds, AL, contact Hill, Gossett, Kemp & Hufford, P.C. at any one of their office locations listed down below.

Have questions about this article or a legal concern? Call 800-672-3103.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

Springville Office 

6441 U.S. Highway 11

Springville, Alabama 35146

Phone: (205) 467-2225

 Photo Credit: Mike Mozart from Funny YouTube, USA, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons

Sources:

1. https://money.cnn.com/2018/03/19/news/companies/claires-bankrupt/index.html 
2. https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics