It was announced yesterday that long-time Fresno carpet business A & M Flooring, Inc. filed for Chapter 11 bankruptcy protection. The case was filed in the Fresno bankruptcy court.
According to news sources, the company which operates both the A & M Flooring USA and Big Bob’s New & Used Carpet stores will seek to reorganize its debts and continue operation.
The company has laid off 24 employees and closed two locations in an effort to cut costs, but the 70 year old Fresno business has sought bankruptcy protection in an effort to continue and survive during this economic downturn.
Chapter 11 bankruptcy affords corporations and high net worth individuals the opportunity to restructure their debts while continuing operations.
The company will propose a repayment plan to the bankruptcy court and if approved and successfully implemented the company could “emerge” from bankruptcy down the road. Unlike Chapter 7 bankruptcy (which is a liquidation of the company’s assets), Chapter 11 reorganization allows the company a workout plan that may not be otherwise be available outside of bankruptcy.
Tags: Chapter 11 Bankruptcy, Chapter 7 Bankruptcy, fresno, Fresno Bankruptcy Court