Success in the retail industry is not easy to achieve, and can easily be lost. A recent article highlighted the recent cluster of bankruptcy filings in the retail industry, especially the retail sporting goods industry, highlighting some of the common causes leading up to bankruptcy.
Previously, we began looking at the topic of Chapter 11 bankruptcy in the context of retail business failures. As we noted, Chapter 11 bankruptcy gives business debtors the opportunity to reorganize in order to pay off creditors.
We've been looking in recent posts at some of the specifics of Chapter 12 bankruptcy requirements. Here, we wanted to provide a general overview of the process. The first step in the process is to file a petition, including forms detailing assets and liabilities, current income and expenditures, executor contracts and unexpired leases, and a statement of financial affairs.
We've been looking in previous posts at the issue of farming business bankruptcy. As we've noted, the farming industry is currently going through a great deal of stress due to decreased commodity prices, and there are bound to be business failures before things get better, particularly for smaller operators.
Last time, we began looking at Chapter 12 bankruptcy, a form of bankruptcy which allows family farmers and family fishermen to establish a repayment plan to catch up on their debts and reorganize their business. As we noted, there are certain requirements which must be met in order to qualify for Chapter 12 bankruptcy.
In our previous post, we began looking at the farm debt crisis and the challenges facing farmers due to low commodity prices. Fortunately for farmers, government assistance does provide some help, but many still struggle. With any business, major financial challenges can lead, by necessity, to adaptation and major restructuring of the business. This is as it should be. When the financial challenges threaten the solvency of the business, though, bankruptcy may be the only way out.
Owning a business can be a major financial challenge, depending on the industry you are in and the health of the markets, the fluctuating costs of operating the business, and various other factors. This is particularly the case for farmers, who are particularly vulnerable to the vagaries of a supply and demand system.
Staying competitive and thriving financially over the long-term is no easy matter for any business. Constant adaptation, innovation and foresight are necessary to ensure a business' success over the long haul. Every business owner has experienced seasonal and temporary challenges, but when a business begins to encounter serious problems, when it is threatened with insolvency, its leadership has to address the situation appropriately.
In our last post, we mentioned the ongoing bankruptcy troubles of Milwaukee businessman Robert Kraft. As we noted, Kraft has filed for Chapter 11 bankruptcy--and, more recently, personal bankruptcy--and his Chapter 11 filing came after one of his companies was placed in receivership.
Wisconsin readers who keep track of business news may have heard that Robert Kraft, former CEO of the now out-of-operation First Edge Solutions Inc. and World Marketing Holdings LLC, filed for personal bankruptcy earlier this month. Kraft's filing, which was made under Chapter 7 of the bankruptcy code, comes little more than half a year after he filed a Chapter 11 case for World Marketing.