Filing for bankruptcy, especially Chapter 11, doesn’t necessarily mean you’re broke or that your business failing. Sometimes it’s part of a larger strategy to get out of a tight situation.
In the case of Sid’s Hardware Store on 345 Jay Street in Metrotech, the business was viable but the lease was too expensive to enable the business to continue long term, according to an article in The Brooklyn Eagle. Attempts to negotiate with landlord Forest City Ratner Companies were not fruitful, and so with two years remaining on the lease, Sid’s Hardware Store used Chapter 11 bankruptcy–which allows debtors to reject leases, among other things–to end its lease at Metrotech and reorganize itself.
Sid’s Hardware Store is now relocating to 435 Hamilton Ave at 14th St and will be operating as a building supply store rather than a retail hardware store. That’s a reorganization and a fresh start, and that’s what our bankruptcy laws are all about.
If you’re a small business owner considering filing for bankruptcy in New York, please feel free to contact me for a free initial consultation. I’m happy to share the benefit of my 30+ years of business bankruptcy experience and to discuss your situation and the options and strategies available to you.
EMAIL Bruce Weiner
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