There are very few people, if any, who haven't been touched by the recession in some way. Consumers all over Texas are being more frugal in how they spend their money. Luxuries are always the first to go and that has hurt a lot of businesses. Some of those businesses have even opted to file for Chapter 7 bankruptcy protection.
One such business is Dragon Fish LLC, the operator of Motif Modern Furniture and Motif Furniture Outlet south of Austin. The company apparently closed its doors in June of this year, and filed for Chapter 7 bankruptcy protection this month. The company is reporting $2.2 million in debt, including a $1 million small business loan and unpaid taxes, and assets of only $210,500.
In today's economy, people just aren't buying new furniture like they used to prior to the recession. It has hurt several stores across the country. In fact, the president of Motif Modern Living remarked about the state of the furniture business when a Dallas-based competitor filed for Chapter 11 bankruptcy protection back in 2009. He noted that while a competitor's closure would in theory mean more business for survivors, the reality is that business has just fallen off for everyone.
Making the decision to file bankruptcy is never an easy one. Anyone who has decided to file bankruptcy, whether it is personally or for a business, may want to seek advice before starting the process. Filing for Chapter 7 bankruptcy can be both confusing and time consuming. If things aren't done properly and deadlines aren't met, the process can take longer and may even result in the bankruptcy being dismissed by the court. It is well worth it to take the time to understand the process.
Source: Austin Business Journal, "Kyle furniture retailer files Ch. 7 bankruptcy," Christopher Calnan, Aug. 15, 2012