The digital age has caused many changes in how business is conducted, and businesses such as retailers often struggle to keep up. Experts suggest that this is one of the reasons for the closure and business bankruptcy of Sears Canada. Retailers across Ontario and North America can look to Sears' closure as a case study in the importance of online strategy.
Agriculture is a very unique business, and its trends often differ from other Canadian industries. While some may be encouraged by the news that business bankruptcy rates are decreasing for farms across the country, it's important to look at the full picture to understand the trends in this market. The financial picture for Ontario farms is impacted by many factors, as is their response to shrinking margins.
When a business is suffering from financial challenges, there are a few steps they can take to possibly avoid bankruptcy. Drug manufacturer Concordia International Corporation took one of these steps by filing for court protection from creditors in Ontario last week. This court protection allows the company to restructure its debt through negotiations as it decides whether to take steps towards commercial bankruptcy.
When a large company files for bankruptcy, many stakeholders are affected. Creditors, customers and employees may all have questions about their rights under Ontario commercial bankruptcy law in such an occasion. The recent Sears Canada closures have drawn attention to many of the considerations for retailers and shoppers when a business of such scale closes its doors.
As e-commerce competitors change the marketplace, many retailers are struggling to maintain their traditional model. As a result, some retailers in Ontario and throughout Canada are considering commercial bankruptcy as an option if necessary. Toys "R" Us recently made headlines when it filed for bankruptcy protection in the United States and Canada.
When companies can go bankrupt, this process has multiple effects on employees, creditors and leadership. But few people know what happens to generous employee programs such as pension plans when companies go under. The recent news about Sears' high-profile bankruptcy has created questions in the minds of many people in Ontario and across Canada about how pension plans may be affected by commercial bankruptcy.
Large businesses filing for bankruptcy can find the bankruptcy process tricky to navigate, especially when many storefront locations and groups of employees are involved. The response to Sears' recent bankruptcy filing from stores across Ontario has highlighted these complexities. Understanding the legal implications and necessary steps of commercial bankruptcy is important for every person working for a company which has recently undergone this process.
A legal avenue for Ontario consumers or businesses to seek relief from overwhelming debt is bankruptcy. It provides immediate relief in that an automatic stay of proceedings is put into effect immediately upon filing for bankruptcy. This stops harassment and legal action by unsecured creditors. The procedures for a business bankruptcy of an unincorporated business or sole proprietorship are similar to those of personal bankruptcy because the business assets and debts are not separate from the owner's personal assets and debts.
There are many different reasons Ontario businesses experience financial difficulties. Owners may not have enough knowledge of business and commercial bankruptcy to make informed decisions. However, there are alternatives to consider that might bring the necessary financial relief to save a business.
While the rapid pace of technological development in all fields may benefit many Ontario businesses, it could bring about unanticipated challenges for some. If such development renders the primary product of a business obsolete, there may be a crisis looming.