How Businesses Survive Bankruptcies With The Help of Inventory Liquidators

Bankruptcies are not always the end of a business, but rather a transformation. The recent case of NJ-based women’s retail clothing chain Joyce Leslie, which recently filed Chapter 11, provides some insights for smaller businesses. In this case, the strength of the brand enabled them to consider life after bankruptcy by liquidating furniture and fixtures among other assets. For smaller businesses going bankrupt, inventory liquidators that specialize in buying assets for cash can make it possible to obtain additional operating capital to restructure as a new business. Of course, each bankruptcy is different as is the filing case heading. While Chapter 7 bankruptcies may leave important assets vulnerable to debt settlement, Chapter 13 and Chapter 11 may be better designed to enable business owners to keep their personal and business assets.

The ability to get immediate relief from creditors under the automatic stay, longer grace period and debt reduction are all positives in this case. These are just some of the ways that Chapter 13 can immediate cash flow and long-term prospects. It is also a good way to address tax debt, which is often an issue for struggling businesses. Overall, it can be a relatively inexpensive tool that combines the discipline of a court-approved payment plan with the flexibility of continuing business operations.

Still, filing for Chapter 11 can give troubled companies some breathing room as they sort things out, but timing is critical. Some businesses that clearly see the signs of going bankrupt engage inventory liquidators even before an early Chapter 11 filing to get ahead of the process and preserve other assets. Depending on the nature of the business, its products, assets and financial situation, this cash infusion can provide the best chance of emerging from bankruptcy with the foundation for a profitable business.

For inventory liquidators, bankrupt businesses can be just an inventory profit opportunity. For the most respected and experienced inventory liquidation firms, they understand the nature of restructuring and the importance of immediate cash flow to making that a reality. By providing the turn-key support that these businesses need, owners and staff can concentrate on the plan for restructuring the business on the other side of bankruptcy for a brighter day and new business life.

Ideal Trading Corp is a liquidation company in New Jersey that offers services for businesses to convert their assets to cash. With extensive experience in commercial liquidation and auctioning, we provide outstanding results for business owners who are going out of business, facing bankruptcy and more. 973.343.6684 – Contact us today!