I recently read a very interesting article in USA Today. The article’s main point is that for large businesses, a Chapter 11 bankruptcy is a useful and often successful business strategy. Think Hostess, American Airlines, and now most recently Eastman Kodak. However, for smaller businesses, bankruptcy is more difficult.
My response is that bankruptcy and other laws do exist for the benefit of all, and do work. They just work differently. Careful review and consideration of the costs and benefits is needed. For large businesses, the costs can be spread over a much larger base, and the size makes post-bankruptcy financing more attractive.
Closing a small business
If you are a small New Jersey business in financial trouble, please visit this area of our website for resources and articles and feel free to contact us at 856.596.2828.