Fast-food and casual dining chain owner shares bad financial news

Debt can sink a business. Even when a company’s locations are largely cash positive, if they don’t create enough revenue to pay off debt, that can force a Chapter 11 bankruptcy. Banks and other lenders can be lenient, but that usually comes down to one simple question: Will the lender recover more money by being patient or by forcing the company to liquidate? In many cases, an asset sale leads to recovering more money faster. It does not matter if the company’s individual locations make money, although t ...