Small Business Owners Urged to Seek Legal Counsel Before Considering Bankruptcy
'Bankruptcy is a scary process, and individuals need legal counsel to help navigate it safely and effectively and to avoid any further turmoil.'— Ken LaMance, LegalMatch's General Counsel.
RENO, NV, UNITED STATES, June 27, 2025 / EINPresswire.com / -- It's no secret that the economy is challenging, especially right now. Lately, small businesses, in particular, are really struggling to make ends meet and avoid bankruptcy.
There are two different kinds of bankruptcy, chapter 7 and chapter 11. Chapter 7 bankruptcy is the option that allows for a complete liquidation of assets to repay creditors, while Chapter 11 bankruptcy focuses on reorganization, enabling the business to develop a repayment plan and potentially retain ownership of said business.
Key factors to consider before filing bankruptcy include, but are not limited to, the following:
- Exploring Alternatives: A bankruptcy attorney can also help someone explore other options apart from bankruptcy in the hopes of avoiding it and its -repercussions.
- Negotiating with creditors: Bankruptcy attorneys can negotiate with creditors to potentially reach favorable agreements.
- Ensuring compliance with legal requirements: The process of bankruptcy has complex laws and regulations that an attorney should review with an individual or small business prior to making any decisions or moving forward.
- Assessing assets and liabilities: An attorney can help you assess your business's assets and liabilities to ensure everything is accurate and complete for filing.
- Protecting personal assets: Some small business structures may put personal assets at risk in a business bankruptcy, and an attorney can strategize with an individual on how to protect them.
Individuals and small businesses who are facing bankruptcy and need to know what options are available to them can find hope with online legal resources like LegalMatch.com, the nation's most esteemed attorney-client matching platform. Individuals can get matched for free with a bankruptcy attorney and receive expert guidance throughout the process.
The platform also boasts an extensive online Law Library with informative articles about various legal matters. Users can research the type of legal trouble they are in, what steps should be taken to move forward, and the attorney recommended for said legal situations.
About LegalMatch.com
LegalMatch is the nation's oldest and largest online legal lead-generation service. Headquartered in Reno, Nevada, LegalMatch helps people find the right lawyer and helps attorneys find new clients. LegalMatch's service is free to individuals and small businesses looking for legal help. For more information about LegalMatch, please visit our website or contact us directly.
Ken LaMance
LegalMatch
+1 415-946-0856
email us here
Visit us on social media:
LinkedIn
Facebook
YouTube
X
Legal Disclaimer:
EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
3 hours ago
- Miami Herald
After Chapter 11 bankruptcy, fashion chain faces sale or closure
Building a brand around being trendy has one key problem. It's fairly impossible to stay trendy forever. A brand like The Gap has come in and out of relevancy, but at most periods in its history, it has had a core audience. Related: Struggling burger chain closing restaurants, won't raise prices Without that core audience, a retail brand built on being trendy invariably has high highs and very dangerous lows. By their nature, trends end. We are not wearing bellbottoms anymore, although history tells us they will probably come back. Kids don't play with pogs and Beanie Babies have gone from being collectibles back to being stuffed animals. As a business, one of the hardest groups to appeal to is younger teenagers. Some retail chains have captured that group but it tends to be fleeting. Younger people move on from things faster than adults. One minute everyone has rubber bands as bracelets and the next anyone seen wearing that trend is horribly out of fashion. Don't miss the move: Subscribe to TheStreet's free daily newsletter Claire's, a once popular mall retailer that sells mostly to teenagers, has been struggling for years. The chain filed for chapter 11 bankruptcy in 2018 and, while it survived, it has never really recaptured its mojo. Now, the struggling retailer faces all sorts of new competition, and it's no longer on trend. Those are problems its current owner appears to not have the patience to solve. When Claire's survived Chapter 11 bankruptcy in 2018, it emerged under the ownership of Elliott Management and Monarch Alternative Capital. It's no longer a public company so, it's hard to know exactly where the chain sits financially, but some new media reports suggests that the retail brand has continued to struggle. The retailer, which mostly sells accessories aimed at younger teen girls seems to struggle to define its brand even on its own website. "Claire's is a global brand powerhouse for self-expression, creating exclusive, curated and fun fashionable jewelry and accessories, and offering world-leading piercing services. The company operates under two brand names: Claire's and ICING," it posted. That's accurate, but does not tell the full story. Claire's sells disposable items meant to be impulse shopping for teenagers. The chain has suffered as rivals like Schein, Temu, and even Amazon have entered that space. More Retail News: McDonald's brings back unexpected breakfast item after 6 yearsIconic fast-food burger chain announces late-night hours expansionMcDonalds' menu brings back breakfast items Chick-fil-A fans love The chain's owner has been shopping Claire's partially due to concerns over President Donald Trump's tariffs impacting pricing and margins. The company also has a $500 million loan coming due in December 2026. If a buyer cannot be found, the owners could sell off the global brand in pieces in order to pay off its debts. Retail expert Neil Saunders remains hopeful that a buyer can be found and that a closure won't be necessary, but he does see changes coming. "I am sure there are buyers out there, the question is what price they are willing to offer. With high debt levels and imminent loan payments, Clare's needs a buyer that is able to inject cash or sustain losses. That necessarily reduces the value of the business. It may also require the business to be sold off piecemeal," he posted on RetailWire. Craig Sundstrom seems slightly more optimistic. "Gee you're already bankrupt, and you get acquired by a well-known activist could have possibly seen this coming? That having been said, I believe they'll find a buyer…it seems like every company, however hopeless, does. It may be someone with more dollars than smarts," he added. The company operate more than 2,750 Claire's stores in 17 countries throughout North America and Europe and 190 ICING stores in North America. It also sells Claire's products in thousands of concessions locations in North America and Europe, and has more than 300 franchised Claire's stores, located primarily in the Middle East and South Africa. Related: Pepsi-owned brand charged with selling people bags of air Mohamed Amer, a retail consultant, does believe a buyer will be found, but he's not confident that the brand will survive. "Debt, tariffs, competition: Claire's perfect storm. Private equity loaded Claire's with debt, tariffs are squeezing margins, and consumer spending is shifting – but the underlying brand and distribution assets could be valuable to someone with a different vision and a cleaner balance sheet. The question isn't whether Claire's current model works (it doesn't), but whether someone can reimagine what Claire's could become," he posted. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
a day ago
- Miami Herald
Luxury retail brand closing most of its stores, no bankruptcy
Many newer retail brands have struggled with how to mix stores and digital sales. Many online only companies ultimately had to open brick and mortar locations because shoppers won't buy certain things if they can't touch them. The challenge, is that physical stores cost a lot of money. That tends to cause problems with the digital only model which is at least partially based on pricing. Related: Popular vision care chain files for Chapter 11 bankruptcy Multiple mattress companies that had intended to be digital only brands ultimately had to open stores. That's because people aren't about to spend thousands of dollars on a mattress without knowing if it's comfortable. Yes, can have a good return policy, but nobody wants to deal with having to return a mattress. It's very similar with things like eyeglasses and even clothes. There's a reason why digital sales have hovered about 15% of total retail sales. People still like shopping in person. Don't miss the move: Subscribe to TheStreet's free daily newsletter Even when it comes to easily returnable items, it's still easier to see the item in the store, be able to touch it, or otherwise experience it, and then buy it. Sure, there might still be buyers remorse, but in person sales for bigger ticket items are much less likely to have a return. One luxury retailer has decided to close the majority of its retail locations to focus on wholesale and its website. Parachute may not be that well-known a retailer, but the chain (which does not sell the beloved 80s pants) has carved out a space for itself. It's a luxury linens and bedding brand that the company describes as "Linens for easy living." That somewhat meaningless, so it offers a little more detail. "Originators of laid-back elegance in the bed and bath. Experts in softness. Our cult-favorite linens are designed in Los Angeles and made with love by craftspeople around the world," it shared on its website. Basically, it's a higher store that tries to wrap itself in a wellness model. More retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers "We believe that sleep is the truest form of wellness. That everything's better after a hot shower. And hitting snooze isn't lazy – it's self care. So we've spent years perfecting the basic white sheet, the everyday fluffy towel, the life-changing mattress. To get back to the basics of relaxed wellness. To be your key to better days ahead," it added. So, pricey towels, sheets, and mattresses that you would think would benefit from people being able to touch them. While Bed Bath & Beyond and Linens and Things were mass market, not luxury chains, both companies failed pretty miserably. Both use very large "box" stores to show off their merchandise and both ended up being liquidated after a bankruptcy filing with all of their stores closed down. Parachute was using a similar model, but has decided to make a major change in course. The retailer is closing 19 stores which will leave it with 7 still open, according to a report from RetailDive. The chain began quietly closing locations earlier this year and its new focus will be deepening its ties to partners including Target. Parachute offered an exclusive collection with the mass market retail chain earlier this year. Related: Fashion giant files for Chapter 7 bankruptcy to liquidate Target trumpeted the deal before it launched in April. "Get ready to sleep in softness and towel off in style. Parachute, the beloved home brand known for its luxurious bedding and bath items, has created a new, exclusive collection just for Target guests. Parachute for Target launches April 27 with more than 200 cloud-like bedding and bath linens. Prices range from $12-$199, with most items under $90 - a value that can only be found at Target," the company shared at the time. Parachute also has distribution with Nordstrom and it used to work with Crate and Barrel. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Fast Company
a day ago
- Fast Company
Rite Aid's Thrifty ice cream brand gets sold to a business entity linked to Monster Energy executives
Rite Aid has selected a successful bidder for its Thrifty Payless subsidiary, which includes the beloved Thrifty ice cream brand, according to a bankruptcy court filing on Thursday. The buyer was identified as Hilrod Holdings, a limited partnership linked to Hilton Schlosberg and Rodney Sacks, top executives at the energy drink company Monster Beverage Corporation. Hilrod is seeking to pay $19.2 million for Thrifty's assets, the filing revealed. The partnership is mostly known for its real estate investments Thrifty ice cream is available at scoop counters located inside many Rite Aid locations in addition to being sold by third-party retailers. It was not immediately clear what Hilrod plans to do with Thrifty should the sale be approved by the court. A hearing on the matter is scheduled for June 30. Fast Company reached out to a lawyer for Hilrod Holdings, and representatives for Monster Beverage and Rite Aid for comment. We will update this story if we hear back. Schlosberg and Sacks had until recently been co-CEOs of Monster Beverage. A filing with the Securities and Exchange Commission (SEC) revealed that Sacks planned to retire this month, while Schlosberg would continue to lead the company. Thrifty Ice Cream caught up in Rite Aid's bankruptcy The fate of Thrifty ice cream has been uncertain since Rite Aid announced in early May that it would see Chapter 11 bankruptcy protection for a second time. The embattled pharmacy chain is winding down its operations, closing or selling its physical stores, and has sold off most of its prescription files to competitors, including CVS and Walgreens. The Thrifty brand stretches back decades in Los Angeles, where it was sold at soda fountain counters inside the Thrifty Drug Store chain. It became part of Rite Aid through Rite Aid's purchase of Thrifty Payless in 1996.
