Navigating Uncertain Times: How retailers can outlast a bankruptcy
In an article published by Chain Store Age on April 4, 2019, Scott Williams discusses bankruptcy tips for retailers.
“The retail world is undergoing enormous shifts as consumer purchasing habits change and the marketplace for goods and services is disrupted,” Williams shares. “How retailers prepare and understand their options in a challenging environment is critical. In this shifting economy, failing to proactively address arising problems is a recipe for disaster.”
To minimize negative impact, retailers need to heed the warning signs of impending problems. “The management responsible for a company’s bottom line must remain vigilant,” he explains. “A retailer opportunity to review budget and performance, although sometimes tiresome and tedious, is necessary. A small, neglected problem can turn into a critical issue within a few months for a retailer.”
Just as planning is essential for the growth of a company, planning is at least equally important in facing tough financial times. “Charting a realistic path toward solid financial footing is vital for a successful turnaround,” shares Williams. “With the help of restructuring professionals to assist, hard questions can be answered and realistic goals for short and long-term financial performance can be identified.”
If all else fails and an out-of-court restructuring simply will not work, a bankruptcy or other legal device can be a useful tool. Bankruptcy law can give a company a respite from the immediate problems of the day, and provide the tools necessary to downsize, restructure or sell as a growing concern.
“Bankruptcy, or state court alternatives, are often the last resort, but should not be viewed as a failure,” he explains. “Rather, these tools are an opportunity to salvage the best of any business and move forward. Creditors can maximize jobs saved, taxes paid and returns on assets through legal restructuring options.”