Butler Williams & Skilling Blog

Another Richmond Company Files for Bankruptcy

Like so many other towns and cities across the nation, the Richmond area has been hard hit by the weakened economy. Several Richmond corporate institutions have fallen prey to the softened business environment.  Companies like Land America and Circuit City who once employed thousands of Richmonders have sought bankruptcy protection or have been forced to liquidate and disappear entirely.  Unfortunately, this week we learned of yet another national company headquartered in Richmond which has been now forced to file for bankruptcy.  National discount men’s clothier S&K has filed for Chapter 11 protection. 

As the economy tightens and credit becomes more and more difficult to come by, a natural by-product will be difficulties for certain brands.  According to February 9^th Richmond Times Dispatch article, whether or not S&K owes its current predicament to its own failings or simple bad luck, remains uncertain.  What appears more certain is that the company looks to need substantial operational changes in order to be profitable.  Still more obvious is that the majority of the company’s creditors will now have to proceed before the federal bankruptcy court in Richmond if they hope to recoup monies owed them.

Labels: Commercial litigation