A seller of sneakers in another state recently decided to file for bankruptcy. The company, which has 11 stores, submitted its Chapter 11 bankruptcy petition on a Friday. It currently owes a whopping $1.9 million to athletic giant Nike. Any retailer or other type of business in Massachusetts that is struggling to make ends meet may be able to enjoy a fresh financial start with this type of bankruptcy filing.
In its bankruptcy filing, the sneaker company acknowledged that it has assets totaling from $500,000 to a million dollars. Meanwhile, its liabilities range from a million dollars to $10 million. Nike is the top company to which the sneaker business owes money.
After Nike is Adidas, to whom the sneaker company owes nearly $300,000. Meanwhile, the third creditor to which the sneaker company owes the most is New Balance, as they owe more than $192,000. The sneaker company asserted that it started falling behind in its payments to large supplier Nike earlier in 2017. Many other retailers have likewise experienced financial difficultly this year due to the growing demand for e-commerce.
Sometimes, companies in Massachusetts and elsewhere find themselves with too many liabilities and not enough assets due to industry or economic situations. Fortunately, Chapter 11 bankruptcy protection is available to help them overcome their financial struggles by reorganizing their debts. Oftentimes, companies that file for this type of bankruptcy protection end up being able to keep their businesses in operation long term. An attorney can walk a business person through the complex bankruptcy filing process so that he or she can get on the path to a more promising financial future.
Source:Â footwearnews.com, “The Sports Zone Is Bankrupt — And Owes Nike $1.9 Million,” Sheena Butler-Young, Dec. 18, 2017