A popular chain of dry cleaners based in a neighboring state is closing its locations following a bankruptcy filing, according to business news. Sort LLC, the parent company of a dry cleaning company in Massachusetts, has filed for Chapter 7 bankruptcy. The company is currently working to ensure all customers’ belongings are returned to them. As some Connecticut business owners can attest, filing for bankruptcy in the face of serious debt can sometimes be the most fiscally responsible decision an owner can make.
According to the limited information available at the time of this report, all of the company’s Zoots dry cleaning locations throughout the state have closed their doors. The specifics of the company’s assets and debts have not been made public at this time. Unfortunately, the closure of Zoots locations has led to a delay in some customers’ clothing being returned to them.
Thankfully, company leadership has gone on record to confirm that a bankruptcy trustee has been appointed to their case. This trustee will work with individual locations to ensure all customer property is returned within a week of the bankruptcy filing. The trustee will also be responsible for facilitating the process of accounting for the company’s assets and debts to determine what assets must be liquidated to satisfy creditors.
Chapter 7 bankruptcy is a valuable tool for business owners here in Connecticut and around the country facing debt problems. In the event a company ceases to be profitable due to outstanding debt, a bankruptcy filing can help protect company leadership by using the company’s existing assets to pay down certain debts. In some cases, other debts can be forgiven outright.
Source: The News Tribune, “Cleaner Declares Bankruptcy, Clothes Still In Company Hands“, Jan. 22, 2018