Iconic discount store and Big Lots rival confirms exact date all 89 locations may close down for good
Amidst circulating reports of bankruptcy, BARGAIN Hunt is closing a distribution site.
A management has now informed the U.S. Sun that the company will close all of its outlets by March.
However, since no formal announcement has been made, it is uncertain if the decision is final.
IMPENDING BANKRUPTCY
According to a Friday Bloomberg article, Bargain Hunt is getting ready to file for bankruptcy, which may happen as early as next week.
The business news outlet also stated that although a final decision has not yet been taken, the corporation is at least thinking about closing all of its locations.
If the business does declare bankruptcy, it might become clearer what lies ahead.While Chapter 7 bankruptcy would indicate complete liquidation is likely, Chapter 11 bankruptcy would indicate they may be able to continue operating.
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In only a few weeks, the Big Lots competitor will close a distribution center, but the company’s future is still uncertain.
On or around March 14, the Antioch, Tennessee hub will close.
On Facebook, there have been rumors that all of the stores would close at the same time.
There has been no statement, so things could change, but one management told the U.S. Sun that this report is true.
CLOSING TIME?
The Tennessee-based company has not yet made an announcement regarding the closure of its outlets.
Without the local distribution center, it’s unclear how the local retailers could operate.
According to its website, the company has 89 outlets. Recently, some places have closed.
According to ABC station WKRN, the Antioch distribution center alone employed close to 300 people.
A complete closure might affect hundreds more.
How does bankruptcy work?
A certain legal procedure called bankruptcy assists businesses in getting rid of debt they are unable to pay back.
Businesses can start over and obtain new credit through the process.
According to Investopedia, bankruptcies, which are overseen by federal courts, make it easier for a business to sell off its assets in order to satisfy its creditors.
Restructuring a firm with the intention of staying open, even if it means selling off the majority of the company’s assets, is accomplished through Chapter 11, a regular procedure for businesses.
In contrast, Chapter 7 puts a business out of business by selling all of its assets.
In contrast, Chapter 15 permits cooperation between U.S. and foreign courts to handle bankruptcy cases involving “parties of interest involving more than one country,” according to the U.S. Courts.
MORE SHUTDOWNS
Many retailers have been forced to drastically reduce their operations or shut down completely due to bankruptcy.
Another bargain store, 99 Cents Only, shut down every one of its stores last year.
When it comes to closing stores, they are not alone.
51 stores will be closing, according to a recent announcement from Dollar General.
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