A restaurant has filed bankruptcy after sales declined for a period of two years. The business has been taken over and is now under new ownership. The business filed for Chapter 7 bankruptcy protection in California and has sold some of their assets to pay off their creditors.
The restaurant faced a downward spiral after sales went down between 20 and 30 percent. The owners had over $49,000 in liabilities, but only a little over $17,000 in assets. Some of the assets included are, $4,000 worth of frozen food, and a $1,000 sushi case. Another asset included is a $1,000 freezer. The Chapter 7 bankruptcy filing allows a trustee to pay off creditors by selling the company’s assets and out of the liabilities, the largest amount was owed to State of California Labor Commissioner for over $30,000.
The restaurant filed the bankruptcy earlier this month and is now under a new name since being taken over by someone else. A manager under the former owner, stated that he was not informed about the restaurant going into bankruptcy. Attempts to make contact with the former owners have been made, but they have not been reached.
In today’s economy, a business can face hardships and become unable to keep up with monthly payments, or pay their employees. Filing Chapter 7 bankruptcy protection can offer a peace of mind to struggling business owners and individuals facing unmanageable financial obligations. In most cases, bankruptcy can give someone a fresh start. Bankruptcy typically discharges most or all debt that is owed to creditors, giving California business owners a sense of financial relief and the opportunity to move on to other investment possibilities.
Source: sanluisobispo.com, Shin’s Sushi in SLO under new ownership after bankruptcy filing, Julia Hickey, Sept. 20, 2013