Jeweler Files for Chapter 11 to Avoid Liquidation

In order to avoid being liquidated, one major jewelry company was forced to file for Chapter 11 bankruptcy this month.

The company's largest creditor, a bank, filed papers of intent in July stating that it planned on appointed a third party to liquidate the company's assets. If this took place, everything would be sold and the 144-year-old company would be forced to shut its doors forever. Not wanting to lose ownership of the company nor shut it down, company executives filed for bankruptcy, a move that halted liquidation by the bank.

At this time, the bank is owed $2.8 million by the jewelry company and is joined by several other creditors who are owed a total of $1.1 million. Of these creditors, the company is highly concerned about a rental company that is owed back rent for two months and is already threatening to send a notice of default for their lease.

If you need help with your business bankruptcy in Illinois, it is advised that you contact Bizar & Doyle, LLC to enlist the immediate assistance of a Chicago bankruptcy lawyer.