Sometimes, small businesses can’t keep up with the demand for their services. Other times, they struggle to make enough money to keep their doors open. Regardless of the reason for a small business’s struggles, if the business can’t stay profitable, the owner may want to consider filing for liquidation bankruptcy.
That’s what the sticker maker Yay! is doing now. Yay! Life! LLC has been producing stickers, refrigerator magnets and car magnets for years, but it claims it now owes $183,546 to creditors and has only $31,391 in assets. The company, which was founded in 2010, was created to celebrate all things that made people say, “yay!” in life. The company produced key chains, bumper stickers, and more. It was even featured in Oprah Magazine.
In 2015, the company closed for a year, which ended up shutting down around 40 nationwide representatives. More time was spent on a new business plan, but the company now intends on filing for Chapter 7 bankruptcy to resolve its debts.
Sometimes, businesses do well for a while, but if a business plan isn’t strong or sales are underwhelming, there can be problems. As a business owner, you’ll be able to tell when profits start to decline and may notice that it’s harder to make ends meet. If you start working through this early on, it’s possible that you may be able to use other means to tackle your debt and move forward. On the other hand, if you’re already behind on bills and can’t see a way to catch up, a Chapter 7 bankruptcy may be a good option to consider.