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Chapter 11 for Pittsburgh YMCA moves forward with three closings

On Behalf of | Jul 11, 2018 | Chapter 11 Bankruptcy

Businesses in Pittsburgh that are experiencing financial struggles might think that closing the business and moving on is the only alternative they have. They might be moderately aware of the possibility that Chapter 11 bankruptcy might help them, but, for whatever reason, are reluctant to consider the process. For many, this might be a mistake. Debt restructuring, debt reorganization and the managing of business debt are just some of the potential benefits of Chapter 11 bankruptcy. If there is still a fear of this process, considering examples of other businesses that have used it could help assuage that worry.

In a prime example of how financial issues can negatively impact even established brands, the YMCA of Greater Pittsburgh filed for Chapter 11 bankruptcy. As part of the strategy to get on stronger financial footing, it will be necessary to close three locations in the area. The CEO expressed his regret that these facilities will close by August 31. The goal is to get the YMCA into a better position so its future can be as long-lasting as its past. The Chapter 11 bankruptcy process is almost complete. The closures will save around $1 million on an annual basis. A vital part of that required the closing of the locations.

A business that is struggling can attempt to salvage itself through the proper application of the Chapter 11 bankruptcy laws. With Chapter 11 bankruptcy, the debtor can formulate a plan to reorganize debts and there is generally not a trustee as there is in other bankruptcies. The debtor can keep the business provided the obligations are met. For business owners who are seeking to shield their businesses from closure and retain assets, Chapter 11 bankruptcy might be an alternative.

The YMCA has been a prominent name in providing low-cost services to people throughout the nation for many years. When a business such as this is having financial issues, Chapter 11 bankruptcy is a time-tested strategy to attempt to improve the situation. For business owners who are facing financial problems, it is wise to consider Chapter 11 with help from a law firm that is experienced in all areas of business bankruptcy.