(Please Note: the best course of action is to take bold steps before have to file for Chapter 11 or worse a dissolution. I am experienced with crisis management, turnaround management and bankruptcy. Contact Me if you are worried about your business.)
Chapter 11 comes with a great cost including, legal, accounting and filing fees. The most significant cost is often the distraction of management’s attention from the core processes of the business. This filing raises more questions than it answers. The effectiveness of the company’s infrastructure in identifying and correcting the real reasons for losses should be under microscopic scrutiny.
Retail is won or lost one transaction at a time. It looks like Circuit City has a no profit pattern. It seems like this pattern is the core issue that should be resolved during this opportunity for reorganization. If not, the Chapter 11 reorganization will likely move to dissolution.
Ultimately, secured lenders will be fine. Vendors will be paid for new deliveries but are at great risk of not being paid in full for invoices related to deliveries prior to the filing. Landlords of closed locations can now begin to plan on what to do with that space as lease payments will be terminated during the Chapter 11 process. Other leases are likely to be renegotiated. Of course, there are large numbers of people who are now not working just as the holiday season is near for them and their families.
There is very little sunlight shining through with this picture. The glimmer of opportunity is for a structural reorganization to be defined and implemented that strengthens the core business. Should that occur, the purpose of Chapter 11 will have been fulfilled.
All Business Crisis Management and Business Turnaround consulting work is done with the direct involvement of Steve Pohlit, President of International Busines Consulting Resources.
I follow the five step process outlined on the main page my business crisis management site -click here. I will do everything possible to avoid a legal reorganization under the Federal Bankruptcy code. When that vehicle is necessary to protect your business, it must be a last resort. The reason is that the administrative costs of reorganization under Chapter 11 of the US Bankruptcy Code are huge. There are attorney fees, administrative fees of the court, trustee fees and professional accounting fees. All of these costs must be paid by the assets of the business or from concessions made by creditors. If your business is struggling, the sooner you call so we can begin addressing your core weaknesses the better.
My experience includes very successful business turnarounds outside of bankruptcy court, successful turnarounds with the protection of the US Bankruptcy court and failures within the US Bankruptcy Court. I have turned around my own business that I purchased and was failing. I have worked with small and large companies, public and private. If you are concerned about the strength of your business you want someone who has personally been through the process as a business owner as well as an advisor. My business experience is extensive. If your business can be turned around, we will do it.
If your business is in a crisis there are several compelling reasons why you should call a Business Crisis Management Specialist. However before you do, please review the following and download your detailed report on The Exact Steps To Business Turnarounds. It is possible you can do this yourself. However, it is likely to be in your best interest to use a business turnaround specialist.
Has your financing bank or lender reduced your line of credit or, even worse, called your loan?
Do most of your key vendors have you on COD?
Have any checks issued by your business bounced?
Are you delinquent paying taxes or benefit insurance?
Are revenue trends decreasing and accounts payable increasing?
Have your valued employees left for a “better opportunity”?
Are you spending all of your time fighting fires?
Do you wake up at night fearing you will be out of business?
Do you fear you will not have enough cash to meet your next payroll? What about the next?
Are you thinking or have been advised that a reorganization of your business under Chapter 11 of the US Bankruptcy code may be the answer?
Do you feel you are at or near crisis stage?
“If you answered yes to more than one of these questions, then you need to call me, Steve Pohlit, at 727-587-7871 Right Now. That is my direct line. I will personally determine if I can help you solve your business problems or refer you to someone who can. This call will cost you nothing and may well save your company.”
FREE Report: The Exact Steps To Turnaround Your Business
and Move From Crises To Profit
There Are Two Compelling Reasons To Consult With A Business Crisis Management or Business Turnaround Specialist:
An independent professional skilled in turning around business crisis situations, brings credibility to your business turnaround process which serves to quiet the companies and people fearful of not getting paid.
A key component of a successful business turnaround is developing and implementing a business plan for improved performance long term. Enlisting the assistance of an independent specialist communicates to employees, creditors and the marketplace you are serious about becoming a stronger company.
One more thing – delaying can mean the difference between a successful business turnaround and having to close your business….or worse….having your assets siezed.
I will help you if at all possibe, but you need to make the next move!