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Tech company files for Chapter 7 bankruptcy

What began as a single store closure has resulted in the shutting down of a chain of tech stores across the United States, according to business news. Kentucky residents may be familiar with TechShop, which has brick-and-mortar locations across several states. Sources are reporting the company has filed for Chapter 7 bankruptcy after battling financial troubles for some time. 

According to the report, the closures began with a location in the Midwest. The company's CEO sent out a memo at 9:14 the morning of Nov. 15 announcing that the company would be filing for bankruptcy. The filing became official later that day, with the memo clarifying that all 10 of the company's locations would be closing. TechShop has locations in eight states, including their flagship location on the West Coast, all of which are slated for closure. 

This is not without precedent, however, as TechShop has struggled financially for years. One location filed for bankruptcy as early as 2010, and the company has been on tenuous financial ground ever since. A strategic decision earlier this year to develop TechShop as a partner to innovators and creators across the country did not pan out the way management had hoped, and the company is now working with a trustee to liquidate existing assets. 

Even the best-planned businesses can encounter setbacks and struggles, as some Kentucky business owners are already aware. As a result, filing for Chapter 7 bankruptcy can sometimes be the smartest financial move a company can make. By liquidating assets to pay down creditors, the company's leadership can re-enter the market in a more financially stable capacity. 

Source: post-gazette.com, "TechShop to close all U.S. locations immediately, filing Chapter 7 bankruptcy", Courtney Linder, Nov. 15, 2017

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