Building a business from the ground up is no small feat, and many California business owners face financial ups and downs along the way. Recovering from those downs can be difficult though, especially for businesses that have expanded to include franchises that span multiple states. In some of these cases, a Chapter 11 bankruptcy filing might be the most appropriate option.
USA Gymnastics apparently struggled financially after a web of corruption and abuse hit California headlines in 2016. The sports organization recently filed for Chapter 11 bankruptcy, which will allow it to restructure. It has recently been hit with many lawsuits from former gymnasts, but it claims that this filing will not affect any of the women's claims.
Since 2017, over two dozen U.S. retailers have filed bankruptcy. Now, Mattress Firm joins their ranks. The brick-and-mortar mattress retailer is pursuing Chapter 11 bankruptcy and plans to close hundreds of stores across the nation, and some California locations are likely to be affected.
Brookstone recently announced that it will close all of its stores located in shopping malls. The announcement came shortly after it filed for debt relief through Chapter 11 bankruptcy. However, the news is not all bad -- California consumers can still find Brookstone products online and in its airport locations.