3 Largest Chapter 11 Retail Bankruptcies
Running a business over a long time can be very challenging. Even very successful companies at some point will find that their costs exceed their revenue and market conditions change. In these situations, filing Chapter 11 bankruptcy could be a great option. Over the past few decades, many notable companies have engaged bankruptcy attorneys and taken advantage of the Chapter 11 benefits. There are three retail giants in particular that have filed the largest Chapter 11 filings of all time.
The largest Chapter 11 filing of all-time belongs to the retail giant, K-Mart. Known for its large line of discount stores, K-Mart at one point was an American staple and had more than 2,000 stores located across the country. They ended up losing the industry battle to the likes of Wal-Mart and Target and filed Chapter 11 in 2002. Today, the company continues to have a strong online presence and several hundreds stores.
Federated Department Stores
Better known today as Macy’s, Federated Department Stores declared Chapter 11 in 1990. The $7.9 billion in debt that needed to be restructured was an all-time record at the time. The company was able to eventually reorganize and now is successful under the Macy’s brand.
One of the most iconic retailers in the country continues to be Toys-R-Us. Unfortunately, the company filed Chapter 11 in 2018 and has since closed all of its stores. This company struggled due to fierce online competition.
If you are a Dallas area business owner and are concerned about the financial wellbeing and future of your company, you should contact Pronske & Kathman, P.C. today. This firm is a leading bankruptcy attorney in DFW Tex. that can provide you with a variety of services. When you hire a Dallas chapter 11 bankruptcy attorney you will receive the assistance you need to make the right decision for your company. When hiring bankruptcy attorneys DFW Tex. area business owners could get very solid guidance when it comes to their bankruptcy options.