Despite a tremendous effort, some businesses are simply not able to withstand the financial challenges of the current economy. Many New Jersey businesses have suffered from decreased revenue and have felt the pressure of rising costs and increased competition. Fortunately, many companies can still achieve a bright future by filing for Chapter 11 bankruptcy protection. This type of proceeding can allow the business to restructure, clean up business operations and prepare for a new buyer or otherwise continue development of the brand going forward.
Munire Furniture recently closed its nursery furniture plant in Echelon. The company decided to file for Chapter 11 bankruptcy protection due to large amounts of debt. According to court documentation, the company owes approximately $29.2 million in liabilities and retains $7.6 million in assets.
According the company's national director of sales, the company put in an immense amount of effort in its USA manufacturing plants. Unfortunately, despite the effort, the company is unable to continue to support them. The company's production will be transitioned to its other plants overseas. The other divisions of the company -- Sopora Sleep, Baby Cache, Suite Bebe and Munire Furniture -- will remain unaffected.
New Jersey-based Munire is planning to restructure while under Chapter 11 bankruptcy protection and will continue to ship product under the new plan. Companies that face uncertain financial roadblocks may be able to choose Chapter 11 relief to find a sense of hope. Under this plan, many companies become more organized, restructured under the supervision of the Bankruptcy Court and have become more attractive to a suitable buyer or otherwise re-entered the marketplace reinvigorated and from a stronger financial position.
Source: furnituretoday.com, "Munire files Chapter 11, closes Echelon nursery furniture plant", Jennifer Bringle, Sept. 26, 2014