Residents of Minneapolis may be wondering about the recent closure of Gordmans retail store in nearby Burnsville Center. After a three week shut down, it was business as usual for the struggling retailer which re-opened its doors on June 29, 2017. This comes as good news for local employees of Gordmans.
Due to financial struggles the retailer was forced to file chapter 11 bankruptcy back in March. When a business such as Gordmans is struggling they make seek debt relief by filing for chapter 11 bankruptcy. This allows businesses that are struggling “to remain open through debt reorganization and by following a payment plan.”
Chapter 11 Bankruptcy
According to United States Courts, “A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization bankruptcy.” While chapter eleven bankruptcy is typically utilized by businesses, certain individuals may also qualify. Upon filing a petition with the court for chapter 11 bankruptcy a business or individual will be referred to as a “debtor in possession.” This term denotes that the business or person will retain their assets while debts are restructured for payment purposes.
“The U.S. trustee also imposes certain requirements on the debtor in possession concerning matters such as reporting its monthly income and operating expenses, establishing new bank accounts, and paying current employee withholding and other taxes.”
It is critical that businesses and individuals seek the assistance of an attorney when filing for bankruptcy. The guidance of a good attorney can help alleviate any of the additional stress that may be involved with the overall bankruptcy process. An experienced attorney can help walk you through what will be needed to successfully mediate your case.