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RadioShack in Florida and throughout the US files for Chapter 11

There are various types of bankruptcies that a company that is seeking this as a financial solution can apply for. Depending on what the company is looking to do in filing for bankruptcy, will go a long way in determining which bankruptcy option is most appropriate. Businesses file for bankruptcy because financially the business has fallen on hard times. If the business wants to cut its losses and close up shop, then the bankruptcy filing that is necessary is one where the assets of the business are liquidated to pay off the creditors and the like. Another business bankruptcy option is to file with the hopes of financially reorganizing the business so that the business can continue.

RadioShack, a rather well-known electronics retailer, has filed for Chapter 11. Accompanying this filing, RadioShack will be closing some of its stores, specifically in the South Florida area. The restructuring that is a part of a Chapter 11 business bankruptcy filing will allow the company to assess its finances, pay any outstanding debts the need to be paid, and to restructure where necessary. This filing is not impacting all RadioShack stores and will not affect the international piece of RadioShack's business.

Bankruptcy is a legal vehicle which starts in the courts. The filing has to be done in court and the court has to authorize the filing and how it will be done where court intervention is required. Most businesses have lawyers that specifically handle filings of this nature. But even without a lawyer present, a business can file for bankruptcy on its own.

Knowing the rights and responsibilities of the parties in a bankruptcy filing is important. But, a bankruptcy attorney may help navigate the system.

Source: Sun Sentinel, "RadioShack may close 40 South Florida stores," Miriam Valverde & Doreen Hemlock, Feb. 6, 015

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