The recession is continually hitting a clothing store in California that recently filed for bankruptcy. Based in Ontario, California, the clothing store was a bargain basement retailer that sold their clothing for the lowest prices possible. After nearly 40 years, the company could not find the debt relief that it needed and was forced to file a Chapter 11 bankruptcy, because they were more than $5 million in debt. A Vernon, California wholesaler attempted to provide them with some debt solutions so they could keep their doors open, but to no avail.

Five months after they filed the bankruptcy, it was sold to another California retailer. The new owners plan to upgrade and change the merchandise, as well as sell some of the merchandise and equipment that came with the sale. The new owners also claim that they will take over the leases for 48  stores and for the time being, keep the original name of the store.

Although the inexpensive clothing store was unable to maintain their finances and keep their doors open, this situation is increasingly common. There are many businesses that simply cannot find the capital they need to keep their doors open and pay their debts. For people and businesses in that type of situation, they may want to consider filing for bankruptcy.

There are several different chapters of bankruptcy that can be filed and an experienced bankruptcy attorney may be able to help in deciding which best suits individual needs. Sometimes, a bankruptcy can provide much-needed debt relief while still allowing the business to remain open. For anyone in a similar situation, they may want to consider retaining a knowledgeable bankruptcy attorney who can help in navigating the sometimes turbulent waters of bankruptcy law.

Source: California Apparel News, "Retailer Susie's Deals Sold in Bankruptcy Court," Sept. 13, 2011