Macy’s Files Bankruptcy in New York City
The R.H. Macy & Company filed for bankruptcy protection in New York City last week, and while they are not the first major retailer to file for bankruptcy the Macy’s bankruptcy is probably the messiest we have seen in some time. The complications between the company, customers and shareholders will make the Macy’s bankruptcy reorganization and maintaining business as usual much more difficult. The fact the Macy’s corporation was largely unprepared for their bankruptcy will make it hard to keep the supply chain moving and even harder to make amends to their equity investors, many of whom were relatively blindsided by the news. Like a typical individual debtor, even major corporations like Macy’s can stick their head in the sand and will look the other way when their finances start turning south.
We see it with our consumer bankruptcy clients all the time. They fear or delay seeking the advice of an attorney because of the stigma and negative public perception of bankruptcy. Some people still believe bankruptcy will punish them instead of giving them a fresh start. It’s human nature to avoid bankruptcy, but still very surprising to see major corporations with hundreds of in house lawyers behave like so many any other people or households in debt. Instead of seeing the financial situation for what it is and getting some help, so many debtors, consumers and corporations alike will either ignore the money problems, or believe they will magically disappear. No matter the thinking, it’s usually desperate and flawed. Consumers lose homes, retirement accounts, valuable possessions and more trying to satisfy creditors. Sadly, these assets can almost always be saved in bankruptcy. We help everyone, but some people help themselves sooner than others.
The same goes for corporations. Macy’s should have seen their bankruptcy coming. Instead they will likely be facing layoffs and store closures over the course of 2014. Many investors made substantial investments to the company last year and are not willing to write the investment off. Macy’s is going to have a very complicated reorganization as a result of their inaction towards their financial troubles.
Despite the common misperceptions around bankruptcy it is a process that is designed to help people get back on their feet. We are lucky to live in a country that values helping fellow citizens find a fresh start when they are down on their luck. While there are some consequences to any bankruptcy, our clients find the benefits always far outweigh any negative effects. Even if you are not sure about bankruptcy it can’t hurt to get the free advice you need if you are underwater on your finances and struggling to make ends meet. Even major corporations make the mistake of waiting, which usually only hurts the situation. If you live in New York City and would like to know what life would be like with a fresh start on your finances please contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free consultation today. We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 8/31/16.
**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.