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We gotta ask...what is #Chapter11 bankruptcy anyway? Why are so many restaurants filing for it? https://www.bloomberg.com/news/articles/2020-12-14/vegan-restaurant-chain-by-chloe-files-for-chapter-11-bankruptcy-kioljxt3
"Ch.11 generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.”
OK..what does that mean for restaurants? https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics#:~:text=This%20chapter%20of%20the%20Bankruptcy,seek%20relief%20in%20chapter%2011.
OK..what does that mean for restaurants? https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics#:~:text=This%20chapter%20of%20the%20Bankruptcy,seek%20relief%20in%20chapter%2011.
The short answer? Restaurants are filing for #Chapter11 so they can sell and get out. But why? Is that what @eatbychloe is planning? https://www.qsrmagazine.com/content/16-restaurant-chains-filed-bankruptcy-due-covid-19
Probably. Unable to pivot to a comparable takeout/delivery model, unable to see a path to profitability, and just want to take what they can and run. https://ny.eater.com/2020/12/14/22175085/by-chloe-vegan-restaurant-chain-bankruptcy
The case of @eatbychloe is...layered. But we can’t help but notice that adding a corporate partner to the equation can force even a viral vegan superstar out of business – even without a pandemic. Thoughts? https://ny.eater.com/2017/3/27/15071258/by-chloe-coscarelli-split-lawsuit
