The modern age of internet shopping and big box stores hasn’t been good for many companies, even stores that have been successful for decades. Competition can be good when it keeps prices down for consumers, but too much of it can make it hard for some stores to compete. Consequently, some have no choice but to file for Chapter 11 bankruptcy or close their doors. Many residents of Connecticut and elsewhere may consider the closing of numerous iconic stores the end of an era.
The national retail giant Sears is not exempt from competitors luring away enough of its customers to have a significant impact. According to News 12 Connecticut, the Sears company, which has been in business for 130 years, filed for Chapter 11 bankruptcy last October. Spokespeople have cited numerous reasons the retailer is experiencing difficulties, particularly competition from other local businesses and online shopping. The Great Recession of several years ago is also said to have contributed to the company’s lingering difficulties. After 182 Sears stores nationwide were set to close, an additional 80 were scheduled to close their doors by March.
It is unknown whether the filing of Chapter 11 and the closing of numerous stores will mean the end of business for the Sears company. However, business owners who are experiencing financial setbacks may consider filing for Chapter 11, which does not necessarily signal the death of their company. This type of bankruptcy can give business owners the chance to restructure their debts and change their business model, which in turn can give them an opportunity to breathe new life into their venture.