Women's clothing retailers across the country, including in Pennsylvania, have had a particularly bad year, with several national chains filing for bankruptcy. The latest company to file for Chapter 11 relief is a well-known bra and lingerie seller with stores in the western part of the country. The company also markets a catalog nationwide and online.
A Chapter 11 bankruptcy is generally a reorganization procedure allowing a business in Pennsylvania or elsewhere to get rid of some of its debt and negotiate restructuring of other debt, thus perhaps allowing the company to keep operating with a modified debt structure. In some instances, particularly those in which a company has planned carefully in advance and has the assistance of experienced bankruptcy counsel, it may file for bankruptcy and continue to operate straight through the process, coming out of the bankruptcy in a stronger economic position than before. Another benefit of a Chapter 11 filing is that a company may continue to operate without interruption of its business affairs and without a shutdown of its retail outlets.