James H. Monroe, P.A.
Call Us For A Free, In-Office Consultation
407-917-4147
No One Should Face Crushing Debt Alone

Shoe store seeks conversion from Chapter 11 to Chapter 7

It does not matter how long a company has been in business: No business is immune to financial difficulties. For the owners, this of course can become quite stressful, especially in situations where the business has been in the family's name for quite some time.

Take for example the recent news of Bakers Footware Group seeking a conversion from a Chapter 11 bankruptcy to a Chapter 7 bankruptcy. The current CEO, Peter Edison, is actually the grandson of the man who started the chain.

At one point, the company had 213 stores, with locations in Orlando, Pembroke and Miami. Shoppers can also buy shoes online. However, over the years the company has reportedly been continuing to lose revenues. In 2010 Bakers reported a $9.3 million loss, and in 2011, reported $11 million in revenue losses.

When looking at what happened, Bakers originally filed for Chapter 11 bankruptcy. The hope was that the company would be sold by Jan. 2 However, this never happened, which led to the company seeking approval to begin the liquidation process through a Chapter 7 bankruptcy.

In terms of the differences between Chapter 11 and Chapter 7, in the most basic terms, a Chapter 11 is when a business creates a payment plan to reorganize debt, while a Chapter 7 is when assets are sold off and the proceeds are distributed among creditors.

Each type of bankruptcy filing offers its own protections. In order to learn more and figure out which type of bankruptcy makes the most sense, Florida owners should speak with an attorney who has experience handling business bankruptcies.

Source: St. Louis Business Journal, "Bakers seeks conversion to Chapter 7 bankruptcy," E.B. Solomont, Jan. 15, 2013

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Debt-Related Questions? We Can Help.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

James H. Monroe, P.A.
651 Rugby Street
Orlando, FL 32804

Phone: 407-917-4147
Fax: 407-246-0008
Orlando Law Office Map