Many people in New Jersey love to spend warm summer days playing tennis. For years, the equipment of choice for these people was manufactured by a local company named, Prince. That was until the mid-2000’s when the company began to fall from favor in part due to multiple ownership changes. That led to the commercial bankruptcy of the business last year.
When the commercial bankruptcy occurred, Prince reported to the court that it owed some $77 million to creditors. This was in contrast to the assets that the company had that were valued at $55 million. At the time of the filing, Prince employed about 80 people.
Now, officials say that the New Jersey company has pared down to only 50 employees. It was also purchased during the commercial bankruptcy process. Its new owners hope to return the company to its once glorious reputation. They hope to achieve that goal through the introduction of new products into the market during the tennis off-season.
In some cases, a commercial bankruptcy can occur when a company finds that they are unable to keep up with their competition. This may have been the case for Prince. However, in some instances, it is unforeseen economic changes, such as the recent recession, that can lead to financial difficulty for a business. In either case, it can be a good choice for the long-term health of a business for its owners to consider the filing of a commercial bankruptcy that can offer protections from the creditors that the business owes.
Source: nj.com, N.J.’s Prince aims to bounce back into tennis players’ hearts, hands after bankruptcy, Ed Beeson, Sept. 8, 2013