If you run a business, you know that the economy being at less than its best can take a toll. Unfortunately, that means that many restaurants are struggling right now.
According to news out of Detroit, HopCat restaurant’s parent company has filed for bankruptcy. Many hospitality companies are struggling at the moment, but HopCat, which is found in eight locations in Michigan, has struggled more than some. The company admits that revenues are down around 100%.
The company previously defaulted on rent and was evicted from a location in Royal Oak. The parent company, BarFly, intends to go through Chapter 11 bankruptcy to restructure its business. The hope is to keep the restaurants open and to maintain the status quo until the company is able to get through bankruptcy and this tough financial situation.
As a business owner, hearing about other businesses struggling may draw attention to your own concerns. If you’re behind on rent or have struggled to make ends meet due to the downturn of the economy, it is worth your time to discuss the option for Chapter 11 bankruptcy.
Chapter 11 bankruptcy is normally used by businesses who need to restructure their finances to become profitable again. This can be done in a number of ways, from reworking contracts to setting up a payment plan with a creditor that reduces monthly payments.
If you are interested in learning more about Chapter 11 bankruptcy, you should consider looking into your legal options. It could be a good way to help you keep your business open while finding new ways to become profitable in the future.