WSJ Reports that Small Business Chapter 11 Filings are Rising Fast, Interviews Nashville Company
The Wall Street Journal published a story on October 1, 2023 reporting on the increasing rate of business bankruptcy filings and the strain on entrepreneurs caused by increased interest rates, tighter lending standards, higher operating costs, and the end of some government aid programs that helped entrepreneurs through the Covid-19 pandemic.
Jason Adkins, owner of Nashville Brighthouse Luxury Green Home Cleaning was interviewed for the article, and he discussed the hardships caused by the pandemic for a business like his. The company, which has 85 employees, successfully completed a Subchapter V restructuring earlier this year. Subchapter V is a new, streamlined form of Chapter 11 available to businesses and their owners with less than $7.5 million in (undisputed) debt. Brighthouse's Subchapter V filing allowed the company to strengthen its operations, preserve 85 jobs, and eliminate all but about $100,000 of $1.4 million in debt.
Robert Gonzales, a partner with EmergeLaw, PLC in Nashville which represented Brighthouse in its restructuring, was also interviewed in the WSJ article. He discussed the increasing numbers of small and middle market businesses the firm is guiding through debt restructurings, and the impact of higher interest rates on businesses' cash flow and liquidity. Combined with tightening credit and higher operating costs, more businesses in Nashville and across the country are seeing the deleveraging opportunities offered through Chapter 11 as the best path toward financial stability.
A link to the WSJ article is available here (subscription required).
About EmergeLaw, PLC
EmergeLaw is a boutique law firm that represents small and middle market businesses and their owners in debt workouts, Chapter 11 reorganizations, Subchapter V restructurings, and other proceedings to help them deleverage and reposition for future success. Applying decades of experience and a specialized toolkit, our Nashville insolvency attorneys help entrepreneurs, family businesses, private equity funded companies, and real estate investors maximize value in ways that many clients find unexpectedly efficient and effective.