A golf equipment company in a different state recently filed for bankruptcy protection. The Chapter 11 bankruptcy filing comes just two years following the company’s launch. This type of bankruptcy filing is available to businesses in Massachusetts and elsewhere that are struggling with overwhelming liabilities.
The golf equipment company that recently filed for bankruptcy completed the filing just one month after laying off the majority of its staff. Following the layoffs, just 10 employees remained at the equipment company. At the time, the company asserted that the layoffs were necessary for the company to become more nimble. In its bankruptcy filing, both liabilities and assets were listed. Their amounts ranged from a million dollars to $10 million.
One of the company’s top creditors is a clothing store, which licensed the name that the company used. This creditor was owed more than $267,000. The equipment company’s landlord is another creditor, being owed more than $77,000. When the company arrived on the business scene, it came up with the unique idea of numbering its irons by loft rather than using the traditional wedges. However, these products did not catch on in the select retailers and country club shops in which they were marketed.
Sometimes a company in Massachusetts or another state ends up with more liabilities than assets for economic reasons. Fortunately, Chapter 11 bankruptcy protection can help such companies to come up with reorganization plans that enable them to keep their businesses alive. An attorney can help companies to complete this type of bankruptcy filing, which can be complicated to navigate without legal guidance.
Source: star-telegram.com, “Ben Hogan Golf Equipment files for Chapter 11 bankruptcy“, Steve Kaskovich and Sandra Baker, Jan. 30, 2017