A bowling alley and its associated partners in a sprawling entertainment center is on the verge of closing its doors after a local justice required the company to file for bankruptcy. The Chapter 7 filing is currently under way, though the center is being allowed to finish out pre-booked events before their doors close for good. Michigan business owners recognize this as a smart financial move for a business facing serious economic challenges.
The road has been rough for the owner of the complex since the parent company also filed for bankruptcy some time ago. Since then, the owner of the property where the center is located has complained of late and overdue rent payments. Additionally, other members of the business community have highlighted what some are calling a lack of attention or care when it comes to the upkeep of the property upon which the business is situated.
The assets of the company are now in the hands of a court-appointed trustee, who is working with the owner to develop a plan moving forward. It is unknown how much money is owed by the company at this time, but it is hoped the company's assets, once liquidated, will help to pay down existing creditors. There is no official word on when the center's last day of business will be.
Michigan residents are well aware of the financial impact of falling behind on rent payments for a business, but thankfully there are options for struggling businesses. In this case, as in many others, Chapter 7 bankruptcy makes sense when approaching the challenge, as it allows existing assets to be used to pay down creditors. This will likely shield the owner from undue financial strain, allowing him to return to the market and move forward in a financially advantageous direction.
Source: pe.com, "Bowling alley going bankrupt", Michael J. Williams, April 25, 2014