There are many businesses in Texas operating in industries that some may believe to be “recession-proof.” The common school of thought is that these industries provide either necessities that people cannot live without or premium services that consumers seek out regardless of current economic conditions.
Unfortunately, there truly is no professional service sector immune from economic downturns. The recent recession brought about by the COVID-19 pandemic serves as a reminder of this fact as the threat of exposure to the illness forced the closure of businesses nationwide, and has slowed the response of consumers to resume many of their pre-pandemic activities even with the recent lessening of restrictions.
National food-and-games chain faces potential of Chapter 11
Most might assume that companies most at risk of seeing their operations end during this time would be small businesses, yet national chains have also taken devastating financial hits during the outbreak. Indeed, according to Restaurant Business Online, the national food-and-games chain Dave & Buster’s recently revealed in its most recent quarterly report that without assistance from some of its lenders, a Chapter 11 bankruptcy filing could be in its future. Like all hospitality industry providers, ave & Busters took a dramatic hit with the closing of the economy, and despite reopening 87 of its locations, the company is still not operating at full capacity.
Finding a financial lifeline through Chapter 11
The benefit that a Chapter 11 bankruptcy offers to businesses in this position is the chance to reorganize its internal without having to cease operations. For many companies, such as action might merely equate to a simple roadblock on its pathway to sustained long-term success. Yet having access to reliable legal resources may be the key to ensuring that a Chapter 11 bankruptcy works to a company’s advantage.