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Toys R Us Bankruptcy Update

A settlement to 33,000 former Toys R Us employees was awarded by a bankruptcy judge. It has been a year since Toys R Us filed Chapter 11 bankruptcy protection. The former workers are receiving $2 million after a class-action lawsuit against the company was filed on their behalf.

Also getting paid is the law firm that is representing Toys R Us. The bankruptcy firm is getting $56 million in legal fees. When a company files Chapter 11 bankruptcy, severance payments and pensions are looked at as unsecured debt. Unsecured debts are typically less likely to be paid and are considered low-priority debt.

When the 33,000 Toys R Us former workers split the $2 million severance package, they will each get $60. Reports indicate that previous employees are disappointed with the amount of severance awarded to them. As part of a benefit package at the beginning of the bankruptcy, the workers were told that they would receive severance pay. During the legal process, however, the severance package was voided. Workers who were promised the money remained even after the first 180 stores closed.

The laid-off workers feel unappreciated and undervalued. Some of the workers gave 30 years of service to the company. Those who were burned by Toys R Us are staying out of jobs in retail stores altogether, knowing about other bankruptcies in the industry (Kmart, Sears, Shopko, and more).

Toys R Us staff who were laid off due to the company going bankrupt have been awarded $2 million by a judge after filing a lawsuit. The company promised , but then rescinded severance money to be paid to workers. The fact that the law firm is receiving a reported $56 million in fees and each worker will get $60, is discouraging for the former employees.

Mattress Firm Files Chapter 11

Mattress Firm Joins Other Retail Companies Who Have Filed Chapter 11 Bankruptcy

Mattress Firm filed for Chapter 11 bankruptcy. The largest mattress retailer in the country plans for its company to close almost 700 of its stores. As it plans to restructure, Mattress Firm is operating 3,500 stores, but will close 200 locations immediately.

Retail stores are filing chapter 11 blog

“Brick and Mortar” businesses and shopping malls are challenged by big-box stores such as Walmart, and online shopping giant Amazon.

In order to alleviate financial issues, Mattress firm would like to get out of some leases as part of its business restructure plan. The closures of Mattress Firm stores adds to the number of almost a dozen other retail companies that have had to file for bankruptcy so far this year. According to a recent report by a real-estate research firm, mall vacancy rates are at 9.1 percent, the highest in seven years. 

Businesses joining Mattress Firm in filing bankruptcy include National Stores, Nine West, The WAlking Comapany, Gumps, Rockport, Brookstone, Bon-Ton Stores, Claire’s, Kiko USA, and A’gaci. A discount retailer with many shopping center locations, National Stores filed Chapter 11 after a difficult retail environment caused financial problems. After filing Chapter 11, Brookstone plans to close 101 locations in shopping malls. Well-known in the shoe industry, Rockport, whose brand sold in more than 60 countries, also filed Chapter 11 bankruptcy protection. Another footwear company, Nine West, plans on closing all 70 stores and selling some of its brands. Based in malls across the country, Claire’s debt issues resulted in a Chapter 11 bankruptcy filing. The Walking company, for the second time in ten years, filed Chapter 11. Retail stores owned by Bon-Ton include Younkers, Elder-Beerman, and Carson’s. The company was forced into liquidation. Kiko USA plans on restructuring its business through a Chapter 11 bankruptcy by closing most of its stores. A’gaci, a women’s apparel retail store, will close 20 of its 75 stores after filing Chapter 11.

A Greater Budget To Prevent Bankruptcy

A Greater Budget To Prevent Bankruptcy

Be Fiscally Conservative By
Spending Less on Your Clothing

There are many different ways to avoid having to file for bankruptcy. You may be told to sell some of your things to pay bills, negotiate with creditors, or to restructure your life. Perhaps something as easy as formulating a better budget is an easy way to avoid having to file for Glendale bankruptcy. One of the ways that you could consider to tighten your budget is to reduce the money that you spend on clothes. Sure, it may be easy to just not buy any new clothes, shoes, or garments. However, some jobs require that you have up to date, fashionable clothing. Other jobs require a uniform or clothes and shoes to perform the job. Sometimes the clothes do make the man (or woman). Sometimes clothing and shoes are a necessity.

Using some creative money strategies may allow you to reduce the amount of money that you have to spend in this aspect of your life. Reducing resources spent on clothes and shoes will allow monies to go towards satisfying the many debts that have been looming over your head. Remember, this budget and reduction has to be done by you as there is no way that those shoes you have had your eyes on at the mall are just going to (all of a sudden) become affordable. Even some of the sales rack items are still going to be more than you are willing to pay.

By looking for your clothes and shopping in different places, you won’t have to sacrifice your love for style even though you are sacrificing some of your clothing budget. Not overspending for clothes is the key to reducing your clothing budget. First of all, you should shop with cash only. Though this may seem old-fashioned, when you limit yourself to shopping with cash for clothing, you will limit the temptation to overspend on a credit card. It’s too easy to swipe that little plastic card in exchange for that new dress or shirt that you have been wanting. When you use only cash for your clothing purchases, if you don’t have the money then you can’t spend it. Cutting back on your credit card use is a bonus. Plus, its never fun to pay for items that you bought months ago.

Many times some of the best deals can be found outside of the mall. On-line shopping can be a great source of bargains. However, when you shop on-line the instant gratification of wearing your purchase is not fulfilled. There are many discount chains that offer you the same quality, name-brand clothing and shoes at a fraction of the cost.

4 best places that you can shop on a budget in Arizona

Marshalls –
Ross –
TJ Maxx –
Norstrom Rack –

Great stores like those above are stores that you may find brand name clothing that was originally put in the department store but then was removed because of a surplus. The items found in these stores are great-quality clothing and shoes, but are sold at the discount stores for a fraction of the price. Hitting the sales racks at the discount stores way garner you even better deals. However, just because things are a fraction of their regular price, don’t be lured to by items you didn’t need just because they were on sale. Also, be aware of impulse buys! Impulse buys are never a good idea when you are on a budget. Only purchase the items that are essentials for your work or your wardrobe at the moment.

A few other local places that you may try to not only find gently used name brand clothes at a fraction of the cost but you could also sell some of your clothing on consignment. Reducing the amount of clothing that you have by selling some of the things you don’t wear anymore is another thing that will help you make a better budget and give you a better chance at avoiding bankruptcy.

There are many discount and used clothing stores throughout Phoenix metro area and around the valley. The popularity of such stores is growing as the economic downturn endures. Seek out the assistance of a Glendale chapter 13 attorney for additional ideas and ways to better your budget and how you may avoid financial hardships and bankruptcy.

Published By:
The Bornmann Law Group
20325 N. 51st Ave. Ste #134
Glendale, Arizona 85392
Office: (623) 640-4945

Republished From:A Better Budget to Avoid Bankruptcy

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Bankruptcy Lawyers in Glendale, AZ

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Glendale, Arizona bankruptcy attorneys can assist you with debt relief in Glendale, Arizona.  Most people file bankruptcy due to one or a combination of things like:  loss of employment, divorce, unexpected medical expenses, the failure of a business, an accident leading to serious injuries, increased interest rates, or a foreclosure. Most of the time, the need to file bankruptcy does not arise from irresponsibility but simply from the unexpected, which is unfortunately a part of life. There is nothing wrong with experiencing relief through filing for chapter 7 or chapter 13 bankruptcy.  The bankruptcy laws were created to help hardworking people in Glendale, AZ,  just like you get out of debt. If you are facing the consequences of unexpected financial crisis, please contact our low cost Glendale bankruptcy attorneys at the Bornmann Law Group, PLLC.  Our lawyers will assist you and work diligently to get you a “fresh start”.

Bankruptcy Lawyers in Glendale

The Benefits of Bankruptcy

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Do you need legal help with a bankruptcy? Contact Glendale Bankruptcy Lawyers at the Bornmann Law Group, PLLC for a free initial consultation today!