Some of our Escondido readers may be familiar with the restaurant known as Elephant Bar, a popular California-based chain that specializes in internationally inspired dishes. But, fans may have a harder time finding a location where the restaurant is still in operation these days, after the company that runs the restaurant filed for Chapter 11 bankruptcy on June 16 and closed 16 locations.
Many of our Escondido readers probably like to hear success stories, and the recent emergence from Chapter 11 bankruptcy for one California company definitely qualifies. The company, a popular Mexican grocery store chain called "Mi Pueblo," was founded in 1991 and has several stores in a few different locations in California. Last year, however, even despite the rising popularity and demand for Mexican food items, the company hit a low point.
California is home to Hollywood, and as such our state probably has more companies involved in the production of movies and television shows than any other. However, even those companies that have experienced relative success in the past may not always be able to keep the profits churning, and that appears to be the case for one company that has locations in both Santa Monica and Hollywood.
Many companies that file for business bankruptcy may not get to experience what it is like to come out the other side of the process in better financial shape than they went in. If a business owner chooses to pursue a Chapter 7 bankruptcy, that will usually mean that the company plans to close down after any and all assets are sold off to satisfy debts. However, when a company goes through a Chapter 11 bankruptcy filing, many times the company is able to emerge once the process is completed and carry on with business.
Many businesses, including some in Escondido, have regular contact with governmental regulatory agencies. While this is a concern that is larger for some more than others, any kind of regulation that specifies how certain aspects of a business need to operate are an important factor to consider in the cost of doing business. It appears that for one company in a Western state in particular, government regulations may have played a significant role in the company's recent Chapter 11 bankruptcy filing.
Many people view hospitals as more public service than businesses dedicated to generating a profit. However, the reality is that many hospitals are indeed focused on profits, although of course most recognize that the path toward profitability is offering the best medical care possible. But, the perception of hospitals as a public service remains, and that can make it a shock when a hospital decides to pursue a bankruptcy filing.
Some of our Escondido readers may remember BottleRock 2013, a music festival held at the Napa Expo in May of last year that spanned five days. Some of our readers may have even made the trip north to attend the event. Unfortunately, the event caused quite a bit of financial distress for the company that produced it, BR Festivals LLC. As a result, the company recently filed for Chapter 11 bankruptcy.
With America's current stagnant economic situation it seems like businesses can face a financial crisis at almost any given point in time. It has been several years since the nation's economy has been in a healthy state, and, unfortunately, there doesn't appear to be a full recovery on the horizon any time soon. As a result, businesses are being put in a position where all options need to be on the table to address financial issues. For some, that can even include a Chapter 11 bankruptcy filing.
Any of our Escondido readers familiar with previous posts here know that businesses that are facing tough financial situations may consider filing for bankruptcy protection. Even though filing for bankruptcy is usually billed as the "beginning of the end" for a business in the media portrayals, the fact of the matter is that Chapter 11 bankruptcy - one form of bankruptcy most commonly associated with businesses - is intended to help the company turn things around and remain in business. Seeing an individual file under Chapter 11, however, is unusual.
This is the time of year that financial experts love, as the final data from 2013 starts to flow in and allows experts to analyze the recent year as a whole. There are many indicators that experts look at to try to judge the state of the economy and what to expect in the year to come. One of those indicators in the business sector is determining how many commercial bankruptcies were filed in any given year. Now, according to a recent report, from the 2013 bankruptcy data it appears that commercial bankruptcy filings last year dropped significantly. In fact, the number of commercial bankruptcies filed last year even dropped below the number from 2007 - the year when the economy really began to tank.