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Furniture business files for Chapter 7 bankruptcy

A furniture business best-known for its iconic 20-foot artistic chair installation is closing its doors after many years in operation. Owners of LaFlamme's had previously filed for Chapter 11 bankruptcy protection, but has since upgraded its filing to Chapter 7 liquidation. Kentucky small business owners can likely empathize with the bittersweet nature of closing a cherished business while simultaneously recovering financial ground in preparation for the next attempt. 

The furniture store has been in operation for some 50 years, during which time local residents patronized the establishment characterized by a large chair display that drew sightseers to its location. However, business has been troublesome for the organization for some time, culminating in a particularly brutal sales report for the first part of January. Management cites poor weather and a lack of foot traffic to the downturn in business, which had already been suffering prior. 

The company filed for Chapter 11 bankruptcy protection back in 2017, but the difficult decision was made by ownership to convert to Chapter 7 liquidation in the second week of January this year. The company lists assets totaling close to $700,000, but its debts exceed $1.5 million. Management has ensured both employees and customers that everything will be taken care of in short order, and no one should be left inconvenienced during this period. 

To business owners here in Kentucky and elsewhere around the nation, the prospect of closing due to debt can be daunting. However, Chapter 7 bankruptcy is actually a valuable tool for owners facing unmanageable debt. By paying down some outstanding debts through liquidation and getting formal discharges for others, a bankruptcy filing can mean the difference between a failed enterprise and a second chance. 

Source: benningtonbanner.com, "LaFlamme's closes, enters Chapter 7 bankruptcy", Ed Damon, Jan. 12, 2018

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