There are many business owners in Pennsylvania that are familiar with the ups and downs of the economy and the effect it can have on their overall business. This combined with other unexpected circumstances, such as unexpected weather events, can have a major effect on the success of a business. One out-of-state winery has recently filed for Chapter 11 bankruptcy protection.
Renault Winery Resort and Golf is one of the oldest wineries in the country. Opening in 1864, it was even able to weather Prohibition by earning special permission to stay in business to manufacture wine used for medicinal and religious purposes. Reportedly, a string of hurricanes and certain economic conditions have created a hardship for the company.
The company recently requested financial protection in the form of Chapter 11 bankruptcy. Court papers indicate that the resort has approximately $11.3 million in assets and $8.6 million in liabilities. Its biggest creditor is the holder of its $7.9 million mortgage which has been foreclosed on and was set to go under a sheriff's sale when the bankruptcy proceedings halted the sale. A representative for the company has said that the winery will remain open.
There are many people in Pennsylvania who have poured all of their time and money into a business. Unfortunately, expected events can have a devastating impact. Chapter 11 bankruptcy gives a business an opportunity to restructure its debt in order to obtain a firmer financial footing. A debt relief plan is submitted to the Bankruptcy Court for approval, and typically, the business remains open while proceedings are pending and its finances are reorganized.
Source: courierpostonline.com, "Renault Winery files for bankruptcy", Joe Cooney, Nov. 14, 2014