Phones Answered 24 Hours A Day Call 800-653-2243
Thompson Law Group, P.C.
Experienced Lawyers on Your Side
Menu / Navigate
Secondary Nav

Chapter 11 can be a useful friend to a small business startup

Environmentally conscious companies here in Pennsylvania may have a higher overhead due to the greater expense of complying with their special preferences for growing and manufacturing a product more naturally.  Such companies may also find it difficult to survive economically as startups due to increased expenses and lower revenues in the first few years. That is why it is somewhat common to see some young startup companies floating in and out of Chapter 11 bankruptcy proceedings to try and stay above-water.

An interesting example is the Hellbender Brewery, which follows some rigorous and unique procedures in its brewing process. The business is approaching the end of its second year of operation.  The brewery, for example, has partnered with American University's Office of Sustainability to find local farmers who will take their spent grain and use it as livestock feed and compost.

The District of Columbia business recently filed for Chapter 11 relief in the bankruptcy court. The company reportedly owes about $135,000 to creditors, which is a modest amount in relation to most business bankruptcies. The filing may be of some comfort to other small businesses with financial struggles.                                                  

The company circulated a press release stating that it expected to "come out" of the Chapter 11 much more competitive and with greater support. It stated that problems with its distributor had to be ironed out and its current financial obligations had to be restructured. The company appears to have faith in the bankruptcy process as a "reorganization" tool, and it respects the ability of the bankruptcy court to assist a company to re-tool itself. In Pennsylvania and all other jurisdictions, small businesses may find that bankruptcy remedies are an extremely helpful way to get back on one's financial feet and moving forward again.

Source: washingtoncitypaper.com, "Hellbender Brewing Files for Bankruptcy", Laura Hayes, Nov. 2,. 2016

No Comments

Leave a comment
Comment Information

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Warrendale Office
Main Office
125 Warrendale-Bayne Road
Suite 200
Warrendale, PA 15086

Toll Free: 800-653-2243
Map & Directions

Pittsburgh Office
DOWNTOWN PITTSBURGH
555 Grant Street Suite 331
Pittsburgh, PA 15219

Toll Free: 800-653-2243
Toll Free: 800-653-2243
Map & Directions

Greensburg Office
GREENSBURG OFFICE
101 North Main Street, Suite 104-A
Greensburg, PA 15601

Toll Free: 800-653-2243
Toll Free: 800-653-2243
Map & Directions

Canonsburg Office
Satellite Office
2400 Ansys Drive
Canonsburg, PA 15317

Toll Free: 800-653-2243
Map & Directions

Monroeville/Wilkins Township office
Satellite Office
400 Penn Center Boulevard
Suite 101
Pittsburgh, PA 15235

Toll Free: 800-653-2243
Map & Directions