Next chapter: Options beyond bankruptcy for struggling businesses

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In the middle market, businesses are feeling the financial crunch. Pandemic-era governmental incentives are ending, interest rates are on the rise and consumer demand for some products is waning. These factors have led to sharp increases in bankruptcy filings. In the first six months of 2023, Chapter 11 reorganizations reportedly increased by 68 percent, with filings for small businesses climbing by 55 percent.
“Those that were relying on the easier cash, lower interest rates, or where there were struggles pre-pandemic are now being negatively impacted,” says Chris Niekamp, Akron Office Partner-in-Charge, Buckingham, Doolittle & Burroughs, LLC.

Smart Business spoke with Niekamp about bankruptcy and bankruptcy alternatives for companies with cashflow struggles.