Alden Global kills Payless, and now Fred's...
https://www.retaildive.com/news/freds-files-for-bankruptcy-plans-to-liquidate/562500
Interesting. Chapter 11 is a reorganization. Chapter 7 is a liquidation.
Here they are filing Chapter 11 yet they are still closing all of their stores.
It's a bit unusual.
Quote from: TheFugitive on September 09, 2019, 11:20:06 AM
Interesting. Chapter 11 is a reorganization. Chapter 7 is a liquidation.
Here they are filing Chapter 11 yet they are still closing all of their stores.
It's a bit unusual.
Most companies that file for Chapter 11 eventually end up converting to Chapter 7, like Toys r us.
Quote from: danfifepsu on September 10, 2019, 10:56:44 PM
Quote from: TheFugitive on September 09, 2019, 11:20:06 AM
Interesting. Chapter 11 is a reorganization. Chapter 7 is a liquidation.
Here they are filing Chapter 11 yet they are still closing all of their stores.
It's a bit unusual.
Most companies that file for Chapter 11 eventually end up converting to Chapter 7, like Toys r us.
That happened with Ames regarding it's second bankruptcy as it filed for Chapter 11 only to end up a year after the bankruptcy filing to convert it to Chapter 7 and shut it all down.
The Chapter 7 was the direct result of the second Chapter 11 being unsuccessful.
Quote from: TheFugitive on September 11, 2019, 09:19:56 AM
The Chapter 7 was the direct result of the second Chapter 11 being unsuccessful.
That is true with all Chapter 11 Bankruptcies that do get converted to Chapter 7 when the companies that file realize that the Chapter 11 will fail and they end up with no choice but to Liquidate.