The hospitality industry is one of the biggest industries in the state of Florida. Thousands of people work for hotels, motels and other hospitality businesses across the state that cater to tourists and business people alike. There are also many independent owners and operators to help provide lodging for tourists and other visitors to the Sunshine State.
Tourism revenue has dropped in many places
Unfortunately, tourism and travel are not always reliable and predictable. The last few years have proven that even the most well-established industries are vulnerable during times of social change. Multiple major industries have had to find ways to adjust their workflows or the way that they interact with customers and clients in the last two years.
The hotel industry is one that has struggled to adjust because of the nature of the industry itself. Overall, industry analysts don’t see this trend reversing in the immediate future. Some predict that the nationwide hotel industry will see a loss of 500,000 jobs.
Florida is among the states projected to lose the most positions, coming in second place with an estimated 39,560 jobs lost. Those hoping to ride out these difficult circumstances and continue operating are their motel or hotel may need to look into Chapter 11 bankruptcy as a way to remain solvent.
A Chapter 11 filing helps a business reduce its operating costs
Some people call Chapter 11 bankruptcy filings restructuring filings because the goal is to help the business make changes so that it can remain solvent. The business may renegotiate its financial responsibilities and make drastic changes to its business operations.
Often, Chapter 11 bankruptcy involves eliminating jobs, which many hotels may have to do to keep the cost low until tourism rates increase again. The chances are good that Florida hotels and motels will have to eliminate some positions or let some workers go if they want to continue paying their other expenses and keeping other people employed.
Bankruptcy can be a way forward for struggling but strong businesses
When your business already has resources and infrastructure, it can potentially bounce back from even extreme financial hardship. However, it takes the right decision by leadership at the company can make recovery possible. Filing a Chapter 11bankruptcy might be a way to eliminate certain expenses and streamline the company’s finances so that you can continue doing business.