Once one of the fastest-growing businesses in their local area, Crystal Care Home Healthcare Services will be closing their doors in March and has filed for bankruptcy. Michigan residents may be surprised to note that the formerly prosperous business has elected to go the Chapter 7 route after seeking Chapter 11 protection some months ago. The case will be overseen by a Bankruptcy Court in the company's home state.
Very few details are available about the bankruptcy filing, but it has been confirmed that the company had formerly sought protection under a Chapter 11 filing, which was approved by the court. However, the company soon changed its tune, asking to be transferred to a Chapter 7 filing after it realized that its debts had outstripped the ability to pay them back. The company is listed as having more than $5 million in outstanding debts.
This is an unusual turnaround for the company, which was listed in 2009 as one of the area's fastest-growing and most prosperous businesses. It is unclear where the turnaround for the company happened, but if Chapter 11 was considered and then abandoned in favor of Chapter 7, it is likely the situation deteriorated rapidly. The company will officially go out of business in early March.
Sometimes, even the best business plans can fall short of the fiscal mark, as many Michigan residents are aware. A Chapter 7 filing allows a business to liquidate all assets to satisfy creditors, typically sparing the personal finances of any owners and shareholders. It is a valuable tool in reestablishing financial balance for a business owner.
Source: bizjournals.com, Crystal Care Home Health goes into Ch. 7 bankruptcy, Mark Reilly, Feb. 20, 2014