Popular Chain Closing More Restaurants in Chapter 11 Bankruptcy
A Chapter 11 filing allows a company to negotiate with its creditors. In the case of a restaurant chain, landlords are often the biggest creditors.
In most cases, the purpose of a Chapter 11 bankruptcy filing is to help a company lower its costs in order to find a way to operate on an ongoing basis with a stronger financial footing.
That requires the support of the people you owe money. Even when a buyer emerges and it appears the company will survive, its creditors...
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