Too many people think of bankruptcy as the end of the road for a small business – but it doesn’t have to be. Filing for Chapter 11 reorganization bankruptcy allows you to restructure business debt, satisfy creditors and get your company back on track. If all goes well, the business survives and even comes out stronger than before.
As you can imagine, however, this is not an easy feat. Plenty of companies never make it out of restructuring. Therefore, it is important to learn from the success stories whenever we can. In a recent business insider column, a CEO named Greg Knight told the story of how his $2 billion company quickly fell into bankruptcy and some of the steps he took to bring the company out on the other side.
Knight addressed what he calls the bankruptcy “hangover” that makes it difficult to rebuild relationships with customers, vendors and the marketplace as a whole. He recommends several steps to repair and strengthen these relationships. Tips include:
- Mend fences with vendors or supply-chain partners you want to work with again in the future. Make sure that they don’t get lost among the other creditors in your settlement.
- Show yourself as a newer and better brand to customers, investors and others who have worked with you in the past. You’ll want to keep these relationships.
- Project confidence and a plan for success in marketing and business communications. In some cases, the messaging may need to include an admission that mistakes have been made, along with the reassurance that you are a new and stronger company.
Reemerging from a Chapter 11 isn’t easy, but it is possible with help and good advice. Often, that starts with a call to an experienced bankruptcy attorney.