When a company or a small business in New Jersey is no longer productive, is not producing a constant cash flow or are enduring financial problems, it might be a good idea to think of various strategies to address these issues. If business debt is the problem, filing for business bankruptcy is just one debt relief option to consider. Companies and business may also want to contemplate debt reorganization and other methods in order to keep the business running, allowing it to thrive well into the future.
Since 2014, the well known children's toy franchise Toys 'R' Us launched a transformation strategy in order to slow the decline in sales, stabilize cash flow and improve the overall financial and organizational health of the company. It was recently reported that the overall sales for its full fiscal year, sales were up 0.5 percent, which amounts to $61 million.
In order to address the debt concerns and the decline in sales, Toys 'R' Us implemented a strategy to reorganize their debt and address issues in its organization and execution. In addition, it was reported that the company no longer has near-term debt due to its recent refinance of its near-term debt maturities, amounting to $1.4 billion. At this time, the company has no significant outstanding debt repayments that will be due prior to 2017.
Refinancing, debt reorganization and implementing a reform of a company could be challenging and even a huge risk to a company. Despite that, it is an option that could be extremely beneficial for the livelihood of a company.
Those considering this or other debt relief options should not only consider the details of their situation but also those of the various debt relief strategies they could implement. Obtaining legal guidance could help them determine what methods and strategies are available.
Source: kidscreen.com, "Toys 'R' Us updates transformation strategy," Patrick Callen, March 25, 2015