Most Louisiana parents have purchased Toys ‘R’ Us products at one time or other. As one of the largest retail toy stores in the nation, the company is a household name in most states. That’s why so many people were surprised to learn that the toy icon was in need of immediate debt relief; in fact, it was struggling to stay afloat.
The company filed for bankruptcy protection and had planned to cut down on its number of stores throughout the nation in an effort to restructure and rebuild. The plan did not work out, namely due to hedge funds that were owed more than $1 billion. The hedge funds activated litigation to force Toys ‘R’ Us to liquidate.
Sadly, 33,000 people lost their jobs when the doors to all the nations’ Toys ‘R’ Us stores closed. A judge overseeing the case recently approved a plan where the hedge funds will control the company while a restructured payment plan is implemented to continue to pay back suppliers. Those who led the attempted turn-around effort say it was primarily online shopping that made it impossible for them to hold their own in the retail market.
There are generally several debt relief options available when serious financial problems arise in a business. A key factor that can mean the difference between staying in business and working toward restored financial stability or shutting doors for good lies in what type of support is accessed. An experienced Louisiana bankruptcy law attorney can review a case and provide guidance as to what might be the best course of action in a particular set of circumstances.