A company that served as the parent foundation for a popular book publisher has filed for bankruptcy. Good Enterprises Ltd. listed among its holdings the Good Book publishing company. Some Michigan chefs may recognize the name for its well known cook book line. Good Enterprises is in the process of undergoing a Chapter 7 liquidation of its assets to pay outstanding debts.
The company lists its assets as between $10 million and $50 million against debts of only $1 million to $10 million, but these numbers have the capacity to be deceiving. The company may be hedging its bets in liquidating existing assets and allowing for additional funds to be left over to pay off unsecured creditors. As it stands, the company lists between 200 and 999 official creditors.
Despite the fact that Good Enterprises had holdings in several companies, Good Books was considered its primary moneymaker. The company's president stated that flagging book sales are the reason the company is entering Chapter 7. In addition to liquidating all company assets, it is presumed it will liquidate their publishing assets as well. The Chapter 7 filing was initiated on Dec. 10.
The closing of Good Enterprises is a reminder to Michigan business owners that any company can fall on difficult financial times. While filing for Chapter 7 can be seen as a difficult decision, it may also be the most financially responsible one to make for a struggling company. It is sometimes better for a business owner to relieve debt strain in order to allow the financial freedom to re-enter the market on a stronger footing to take advantage of future investment opportunities.
Source: publishersweekly.com, Good Books Parent Files for Chapter 7, No author, Dec. 11, 2013