Even after hard times fall upon a community, some businesses will do whatever they can to keep their doors open. This is especially true for companies that have been in business for a long time and want to hold onto their legacy. One way for a company in New Jersey that is struggling financially to keep operating is by filing for Chapter 11 bankruptcy protection.
To hold onto its 150-year legacy, Renault Winery Resort and Golf recently announced that it would be filing for Chapter 11. According to the company’s CEO, Renault will not be closing its doors while undergoing the process. The beautiful resort is also recognized in New Jersey as a historic landmark. Through this bankruptcy protection, he believes that the company will be ensuring its future.
The biggest creditor that Renault owes is OceanFirst Bank for a foreclosed $7.9 million mortgage. Based on court documentation, the company has $8.6 million in liabilities and $11.3 million in assets. Originally, the business was going to be sold off in a sheriff’s sale, but the process was halted after the company filed for Chapter 11.
Even though business has been slow and people do not have as much discretionary income, Renault is hopeful that it will survive this difficult time and come back stronger than ever. Through the Chapter 11 process, the company may be able to strengthen its financial ground and come back stronger than before. Businesses in New Jersey that are suffering to stay afloat may find a ray of hope in filing for bankruptcy protection. Not only can a business become more attractive to a potential suitable buyer, but it can also take the time to straighten out its finances and learn to operate more efficiently.
Source: courierpostonline.com, “Renault Winery files for bankruptcy“, Joe Cooney, Nov. 14, 2014