Bird & Van Dyke, Inc. - A Professional Law Corporation
Contact us for a Free Initial Consultation | Se Habla EspaƱol
Stockton 209-390-8877
Tracy 209-800-8962

California restaurant files Chapter 7 bankruptcy

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

No Comments

Leave a comment
Comment Information
Email Us Today

Contact Bird & Van Dyke

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Review Us

Stockton Office
2111 West March Lane, Suite B 300
Stockton, CA 95207

Phone: 209-390-8877
Fax: 209-478-9954
Stockton Law Office Map

Tracy Office
1138 Parker Avenue, Unit B
Tracy, CA 95376

Phone: 209-800-8962
Fax: 209-478-9954
Tracy Law Office Map