News & Updates

WHAT SMALL BUSINESSES CAN LEARN FROM LARGE BUSINESSES

Since the nationwide shutdown, many people have been waiting for an avalanche of bankruptcy filings under Chapter 11. As of the writing of this article, there have only been a few notable filings, such as the XFL, Frontier Communications and True Religion. While there has been a lot of anticipation about filings by large retailers, […]

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THOUGHTS AS TO WHAT YOU CAN BE DOING DURING THE SHUTDOWN

We all find ourselves in a similar place with our businesses. Best case scenario is your business is able to continue operating relatively normally (while you are home). More likely is you are able to operate, but at a reduced level. There is also a possibility that you have stopped operating. What should you be […]

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THE NEW SMALL BUSINESS BANKRUPTCY LAW—HIGHER DEBT LIMITS

Under the CARES Act, the debt limit to qualify to be a debtor under the new small bankruptcy law has been increased to $7,500,000 for the next year, up from $2,725,625. The new law (known either as the “SBRA” or “Subchapter 5”) is a way for small businesses to go through reorganization in chapter 11 […]

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NO FORCE MAJEURE CLAUSE? HOW ABOUT IMPOSSIBILTY OF PERFORMANCE?

Up until a week ago, most of you had never heard the phrase “force majeure.” However, I imagine that since then many of you have dusted off your contracts to see if yours contains that clause. What happens if the answer is no? Are you out of luck? Not necessarily. There is a doctrine called […]

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HAIR CUTTERY FILES CHAPTER 11—COVID-19 WAS THE TIPPING POINT, BUT ITS PREFILING WORK MAY HELP IT GET THROUGH BANKRUPTCY

On April 23, 2020, Hair Cuttery (corporate names Creative Hairdressers, Inc. and Ratner Companies) filed Chapter 11 bankruptcies. CHI has over 800 salons nationwide, with over 10,000 employees. Last year, even though it had over $440,000,000 in revenues, CHI was having difficulties (such as being in covenant (nonpayment) default with it primary secured lender). So, […]

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