Louisiana business owners understand how challenging it can be to stay afloat during economic turbulence or problematic situations involving workplace accidents. These two issues are perhaps the two biggest factors in a Chapter 7 bankruptcy that was recently filed in another state. The situation involves a bakery that has been in business for nearly 100 years.
The owner of the bakery said not only has his family’s business struggled since the economic collapse in the early 2000s, the entire local region has had trouble recovering as well. The bakery’s liabilities already outweighed its assets when two injured workers filed lawsuits against the owners, thus prompting further financial distress. One of the owners said that filing for Chapter 7 bankruptcy, however, will discharge the lawsuits.
Many local customers were likely glad to hear that the bakery’s bread would still be available. Another company has leased the brand name and the recipe and plans to continue making the bread the same way. Most of the employees who work for the iconic bakery will now go to work for the company that has acquired the lease.
This case shows how filing for Chapter 7 bankruptcy can often help a business owner avoid financial ruin, especially when problems arise that make it otherwise impossible to overcome a particular financial crisis. An experienced bankruptcy law attorney is a great asset to have on hand when a business’s financial interests are at risk. Any Louisiana business owner who is currently facing such problems may want to reach out for immediate legal support.