Whenever a company in Ohio is facing financial uncertainty and considering bankruptcy as a possible solution, there is always a chance that its assets could be liquidated entirely. However, in some cases, other companies may bid for a chance to take over the company and save it from certain demise. In these situations, new management may modify the way the organization is run and swap certain aspects entirely in an effort to get the company back on its feet in the competitive marketplace.
In a recent example of this, Bon-Ton Stores is currently awaiting a bid from potential investors before succumbing to liquidation in its bankruptcy filings. Bon-Ton Stores is the parent company of Bergner's which is a department store chain. The company noticed an exponential decrease in sales during the 2017 season totaling over $130 million in losses during just the first three quarters of the year. As a solution, the company opted to shutter 40 stores across the nation in places like Chicago, Danville and Peoria.
While a date was set for the bidding war to begin, a setback occurred when a $500,000 fee was declared not collectable by one of the bidding companies. The courts ruled that the bill could not be collected for due diligence because other bidders were responsible for financing that bill on their own.
For companies facing bankruptcy in their future, they may wish to enlist the help of a qualified attorney. With the guidance of a legal professional, financially stricken companies may be able to explore alternative options to liquidating their assets and closing their doors.
Source: Herald & Review, "Bid to save Bergner's parent company from liquidation faces setback," Apr. 16, 2018