Filing for bankruptcy can be a daunting task for anyone, but especially for large companies that are grasping at straws to overcome financial blunders. For struggling companies in Virginia, filing for bankruptcy may bring with it the promising hope that somehow, they may be able to turn their problems around and strengthen their financial foundation to rediscover success.
In a story that has developed over many years and has recently gained nationwide attention, the once-famed department store Sears is in the throes of bankruptcy proceedings as they are failing to recover from mounting debts that appear to have resulted from poorly managed financial decisions. In a new development to an already chaotic story, some of the directors of Sears have hired Evercore to analyze the decisions made over the past years by former CEO Eddie Lampert.
Most notably, Lampert arranged a mass merger with Kmart and Sears back in 2005 to revitalize slowing sales. The investigations that are being conducted by Evercore will determine whether or not any impending legal action should be taken against the former CEO. Currently, Sears is seeking financing help to prevent having to resort to liquidation.
If a company is struggling to stay competitive and financially afloat, they may be considering bankruptcy as an option and may benefit from the help of an attorney. A legal professional can help provide guidance throughout the process of filing for bankruptcy and can provide ideas for other solutions that may be considered as an alternative.
Source: Fox Business, "Sears directors to examine former CEO Lampert's deals: report," Ken Martin, Oct. 26, 2018