An important element of maintaining a thriving business in Salem is being able to adapt to changes in the market that are driven by consumer demand. However, there may be times when those changes occur so rapidly or prove to be so extensive that virtually no company could hope to deal with them successfully. The financial strain that may result from such a massive market shift could leave companies with little time to discover other potential revenue streams. In these cases, a Chapter 11 bankruptcy may provide business owners with the protection and time needed to reorganize themselves and secure the financial support needed to stay afloat.
That certainly seems to be the goal of Hastings Entertainment Inc. The entertainment retailer recently announced on its website that due to ongoing challenges presented by the lack of consumer demand in the physical media properties it specializes in, it has been forced to file for Chapter 11 protection. The hope is that this action will allow the over 126 locations that it operates nationwide to remain open while a buyer for the company is found. In the meantime, it has been forced to suspend some of its more popular services, such as video game rentals, layaway deposits, and its buyback program.
While actions such as the one Hastings is taking may offer no guarantees that a company will be able to remain in business, it at least gives one a fighting chance to find or develop a viable option for dealing with its troubles before its debts have the chance to become insurmountable. Those viewing a reorganization bankruptcy as their best option for staying in business may wish to first speak with an attorney to ensure that this is the right course for them to pursue.
Source: Kirksville Daily Express “Hastings files for Chapter 11 bankruptcy; says stores will remain open for business” June 16, 2016
