It was a business without a plan. Even Ben Franklin knew that was a bad idea. As he is often quoted,—especially in business classes—“If you fail to plan, you are planning to fail.”
Three years after starting an Atlanta coffee shop with aspirations of franchising, Saxby’s Coffee went into Chapter 11. The company spent two years there before coming out of reorganization. Today, they’ve expanded to 27 locations and will bring in revenue of $15 million. Clearly, putting a reorganization plan into place was the right plan.
Saxby’s Coffee was saved by filing for Chapter 11 bankruptcy protection. With both a business plan and a vision in place, Saxby’s is growing by locating their cafés on university and college campuses. With a unique business model, these student-run cafés offer young people real-world experience running a business while getting full academic credit from the partnering university.
A new beginning
Chapter 11 business bankruptcy is a process that allows a business to continue to operate, but under supervision. This reorganization is designed to help the business run more efficiently and pay the creditors. Chapter 11 offers these tools to help the reorganization process:
- Automatic stay: This protection provides breathing room from creditor actions.
- Assume or reject: The debtor can reject a lease or contract and potentially renegotiate to more favorable terms.
- Cramdown: Creditors may be forced to accept a fair and equitable plan that modifies loan terms.
If your business needs a fresh start, learn about the options you have with the Chapter 11 bankruptcy process. Chapter 11 offers the opportunity to reduce your debts, restructure finances and increase profitability—all while staying in control of your business.
