Event Rentals Inc., a company that provides tables, tents and napkins to events of all sizes, recently submitted a filing for bankruptcy. The Chapter 11 filing was submitted on a recent Thursday. So far, the company has not found a suitable buyer to keep its operations running; however, negotiations with lenders are underway to garner financing that will support operations until the sale process is complete.
Event Rentals is hoping to sell its assets quickly, within 105 days of its Chapter 11 filing date. In so many words, the company is attempting to describe itself as an extremely viable business that just needs to a bit of deleveraging and capital investment. The company is blaming its current liquidity issues on the same poor economic conditions that sent many New Jersey businesses into turmoil. It also blamed its debt problems on a growth spurt that did not happen at the right time.
The company had just completed a major expansion when its customers started to rein in spending as a result of the bad economy. Indeed, the downward spiraling economy affected business in New Jersey and throughout the nation. Many of these companies have yet to recover, with some having filed for bankruptcy and others considering filing for viable bankruptcy in order to stay in business.
Event Rentals, just like many other New Jersey business considering Chapter 11, has a great deal business equity and a solid client-base. In this sense, a suitable buyer with sufficient assets and liquid capital could purchase the company and turn it back into a profitable, and smoothly running business. Countless businesses have utilized Chapter 11 bankruptcy proceedings like this to strengthen and streamline themselves into a highly attractive investment for suitable buyers.
Source: online.wsj.com, Event Rentals Files Under Chapter 11, Seeks New Owner for Business, Peg Brickley, Feb. 14, 2014