Despite the growing economy, the retail apocalypse continues for many retailers, especially small-business-owned brick and mortar stores. The continued growth in e-commerce has changed the way consumers shop for many products that had previously been purchased locally.
E-commerce has influenced America in many ways. Online shopping is an easier way to obtain the items an individual may need, without having to leave the comfort of his or her own home. Many Americans have seized this opportunity, as they can search for what they need and, with the click of a button, have their products delivered to their doorstep within a matter of days. Many times, online shopping allows a person to save money, as there are promotional online-only sales, along with e-coupons. However, e-commerce has proven to be detrimental to many brick-and-mortar stores.
Over time, many major retailers have succumbed to the wrath of e-commerce. Most recently, the long-standing toy retailer, Toys R Us, has fallen into bankruptcy and liquidation. In September 2017, the toy giant filed for Chapter 11 bankruptcy. Chapter 11 is a reorganization effort used by businesses and some individuals that are burdened by large sums of debt. The retail chain was crippled by approximately $5 billion in debt.
While attempting to stay afloat during the holiday season, the retail chain persisted and attempted to fight back against the rise of e-commerce. However, on March 15, 2018, Toys R Us officially succumbed. That day, the retail chain received approval from the federal court to liquidate all of its assets and it officially closed its doors for good in mid-2018.
Bankruptcy and liquidation are difficult processes. Often in a bankruptcy proceeding, overwhelming amounts of debt cause the business to either a) file for reorganization or b) liquidate their assets. Many business debts are associated with the following:
· Business loans;· Merchant cash advances;· Purchase and sale of future receivables;· Business credit cards;· Equipment leases;· Business lines of credit, among others.
If your business is faced with bankruptcy due to an unconscionable amount of debt, it is important to consult an experienced New York business debt relief lawyer to discuss your options. The skilled business debt relief lawyers at Jacovetti Law, P.C. are knowledgeable in representing clients in business debt relief matters, including debt resolution and reorganization. Our business debt relief lawyers will work with clients to assess their debt situations and advise them on the best path to financial stability. To schedule a free 15-minute telephone consultation, contact our New York debt relief law office at (516) 217-4488 or fill out our contact form.