Often, companies in California have many different employees who dedicate themselves to the company's success. Despite this dedication, there are often factors beyond the control of workers that can impact revenue. In some cases, a company may decide that the best option is to seek Chapter 7 bankruptcy protection.
Great Pacific Seafoods has recently announced its decision to follow this path. A spokesperson for the company has indicated that seeking bankruptcy protection is the best course of action based on the financial issues the company has experienced over the last year. The decisions will close at least three processing plants. The company lost $5.3 million in revenue in 2015 in comparison to the year before, prompting the decision.
The president of the Seattle-based company lays the blame for the decrease of revenue on several issues beyond the company's control. These issues include a Russian embargo and decrease in demand. Additionally, the minimum wage was increased $2 per hour, and a visa program allowed workers from out-of-the-country to work at facilities that process fish. As a result of the loss, one creditor ended its line of credit, making it impossible for the company to launch the fishing season.
Companies in California have also found it difficult to cope with economic factors that are beyond their control. As a result, they find themselves struggling with debt or without the necessary funds to continue operations. An attorney with experience regarding Chapter 7 and other forms of bankruptcy can help these companies better understand the options that are available to them.
Source: seattletimes.com, "Seattle-based seafood company shuts down", May 29, 2016