Coldwater Creek Files for Bankruptcy
Coldwater Creek, the Idaho-based women’s clothing retailer, has filed for Chapter 11 bankruptcy. Jill Dean, CEO of Coldwater Creek, stated that, “While we are extremely disappointed with this outcome, the company’s declining liquidity position and the challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action.”
In the bankruptcy filing, the retailer listed assets of $10 million to $50 million and liabilities of $100 million to $500 million. The company has not been profitable since 2007, leading to many rumors of strategic alternatives, sale, and bankruptcy.
Once the bankruptcy decision had been announced, the company said it will begin sales to liquidate its inventory in early May. Those sales have now begun, though no official store closure date has been announced. Coldwater Creek has 365 stores nationwide, including two in the Sacramento area.
Bankruptcy as an Individual or Business
Bankruptcy is a serious legal matter which requires advanced skills and knowledge to successfully navigate. While many individuals file bankruptcy, it is common for businesses that are gravely in debt to also file for bankruptcy as Coldwater Creek did. However, there are different options when filing bankruptcy, both as an individual or as a business.
It is important for those facing or contemplating bankruptcy to utilize the skills and experience of professional lawyers who specialize in bankruptcy law. The Amerio Law Firm in Sacramento focuses on several legal areas, including bankruptcy.
Two bankruptcy areas Amerio Law Firm handles are Chapter 7 and Chapter 13 bankruptcy. Both offer benefits; however, to know what works best for an individual or business, it is best to seek help from an expert. Chapter 7, for example, is also referred to as “debt elimination bankruptcy,” because it frees the debtor from liability of unsecured debts upon discharge of the case. This is a popular solution for many who find themselves heavily in debt. Chapter 13, on the other hand, is commonly known as “wage earner plan” or “reorganization” bankruptcy, as it provides a way for the debtor to pay back debts while keeping their assets and making regular monthly payments to a Trustee.
While bankruptcy may seem like a difficult choice, it can actually greatly benefit the person who files. Amerio Law Firm explains to clients who seek help that the benefits of filing bankruptcy can include discharging unsecured debt, stopping harassing creditor calls, stopping wage garnishing, and finally attaining financial freedom. While filing for bankruptcy might not be suitable for every client, the experts at Amerio Law Fim can help clients navigate the confusing world of debt, finding the best solutions for their individual needs.