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Popular Massachusetts restaurant files for Chapter 11 protection

There is a misplaced perception that simply running a Massachusetts business that is seemingly busy means that there will be automatic profit and no financial problems. That, however, is a mistake. There are many different issues that a business owner will face including paying for supplies, garnering loans, keeping up with interest payments, taking care of employees and more that can lead to financial struggles. In some instances, it is necessary to consider reorganization through Chapter 11 bankruptcy. What people considering a business bankruptcy must remember is that it is often an important step to keeping the business afloat and getting back on track for greater solvency.

The chef and owner of a Massachusetts restaurant has filed for Chapter 11. The owner states that the fact that the restaurant is busy has nothing to do with the need to file for bankruptcy protection. According to him, this is a strategy to restructure and is needed to keep the business going and continue serving customers. His reasoning is bolstered by the rise of new restaurants in the area and the costs of maintaining a small business. The restaurant has been in place for nearly 10 years and he says he has no intention of closing or selling it. It has been consistently rated as one of the top dining locations for many years.

This Chapter 11 bankruptcy filing comes on the heels of the chef/owner closing another restaurant but, according to him, the two decisions are not connected. In order to keep his business going, he is considering other changes that the customers have suggested like bringing dishes from the past back. This, like the Chapter 11, is part of evolving and maintaining the business.

Chapter 11 has numerous advantages that allow the business owner to retain possession of the property and continue operating. Unlike other forms of bankruptcy, there is no time constraint with Chapter 11. Although there are many benefits linked to Chapter 11, there are also other issues that must be remembered. This includes knowing that the repayment plan is subject to court approval. Business owners who are seeking debt relief need to know the details of Chapter 11 before moving forward. Speaking to an attorney experienced with helping clients get back on better financial footing through bankruptcy can navigate the terrain and help with a case.

Source: Boston.com, "51 Lincoln in Newton files for Chapter 11 bankruptcy protection a week after its sister restaurant closes," Meagan McGinnes, April 6, 2016

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